Credit: Inside The MagicThe Walt Disney Company is hanging in the balance, and Disney’s CEO, Bob Iger, knows it, so he sent out a desperate plea to his shareholders just a few days ago.
Disney CEO Bob Iger Sends Out Message to Shareholders as the Fate of the Company Hangs in the Balance
In a recent address on VoteDisney.com, CEO Bob Iger of The Walt Disney Company passionately advocates for shareholders to cast their votes in favor of Disney’s Board of Director nominees, dismissing those put forth by Trian Group and Blackwells Capital. Reflecting on the challenges faced since his return to the helm, Iger acknowledges the company’s progress and expresses profound optimism regarding its future trajectory.
Highlighting strides in streamlining Disney’s organizational structure, Iger lauds the current Board of Directors as seasoned and deeply committed leaders. Disney has initiated a higher dividend and a substantial stock buyback program emphasizing the importance of consistently delivering shareholder value. Iger denounces activist investors as disruptive distractions and underscores Disney’s objectives, including elevating film quality, enhancing ESPN’s standing as a premier sports platform, and leveraging streaming for robust growth.
Notably, Disney previously shared a video featuring the character Professor Ludwig Von Drake to guide shareholders on the voting process using their white proxy cards. Blackwells Capital’s nominations, including former Warner Bros. and NBCUniversal executive Jessica Schell, Tribeca Film Festival co-founder Craig Hatkoff, and TaskRabbit founder Leah Solivan, propose restructuring Disney into three distinct entities. Meanwhile, Trian Group has nominated its CEO, Nelson Peltz, and former Disney CFO Jay Rasulo for board positions.
Disney’s Billionaire Problem
So, you might wonder why Disney’s CEO is sending this plea to its shareholders. For starters, they are attempting to gather their votes to gain one to three seats on the Board of Directors to change things up in the coming years.
Trian Partners has officially lodged documentation with the SEC concerning their proxy contention aiming to attain two Board of Directors seats at The Walt Disney Company. Trian Partners has nominated Nelson Peltz and Jay Rasulo, the previous Chief Financial Officer of Disney, as their candidates.
Trian does hold a pretty big common stock in the Disney company, nearly $3 billion worth. They have undertaken a formal measure by filing a preliminary proxy statement with the Securities and Exchange Commission (SEC). This action is part of their endeavor to propose Nelson Peltz and James A. (“Jay”) Rasulo as nominees for the Disney Board of Directors election at the 2024 Annual Meeting of Shareholders.
Disney’s other problem is with an activist investor called Blackwells Capitol. Blackwells holds approximately $15 million worth of stock within the Disney company, making them a notable stakeholder. But the problem with them is they not only seek to gain a seat on Disney’s Board of Directors, Blackwells also aims to split the company into three separate parts.
But more than anything, these billionaire and millionaire investors seek to shake things up within the House of Mouse, and Bob Iger disagrees with their plans. Hopefully, Disney will not have to worry about these billionaires and will prevail in April when the voting for the Board of Directors occurs. But it’s too early for either side to declare victory. Iger also has to deal with the likes of Florida Gov Ron DeSantis over in Orlando as the Walt Disney Co goes to legal war. But again – too soon to declare anyone victorious.
What are your thoughts on Bob Iger’s video to shareholders a few days ago? Do you want to see Nelson Peltz, Jay Rasulo, or Blackwells Capitol to get a seat on the Board of Directors?