Disney (DIS) has hit back at activist investor Nelson Peltz amid his ongoing proxy fight with the hedge fund billionaire.
“Nelson Peltz does not understand Disney’s businesses and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly changing media ecosystem,” Disney said in an updated proxy statement Tuesday, adding, “The Disney’s current board has right board for shareholders.”
The company again defended its stock performance under the watchful eye of CEO Bob Iger, noting that Disney’s total return in its first fight as CEO was 554%, beating the 244% total return generated by the S&P 500 over the period.
Additionally, in the face of Peltz’s repeated criticism of the company’s $71.3 billion purchase of 20th Century Fox in 2019, Disney doubled down on its Iger-era acquisitions, which also included Marvel in 2009 and Lucasfilm in 2012 belonged.
The company argued that the deals “transformed” the company into the media powerhouse it is today, after Peltz said in a recent interview with CNBC, “Fox has hurt this company. Fox took away the dividend. Fox has turned a once-immaculate record into a mess.”
Disney shares, which were little changed in early trade Tuesday, are up about 4.5% since Peltz first announced his proxy fight Jan. 11.
At the time of this announcement, Disney announced that Nike CEO Mike Parker would assume Susan Arnold’s position as CEO and recommended that shareholders vote against Peltz to win a seat on the company’s board.
Peltz’s Trian Fund Management said it owns about 9.4 million shares of Disney stock, equivalent to about $900 million. The hedge fund, which disapproved of Iger’s surprise return, is pushing for additional cost cutting, operational adjustments and a post-Iger successor — something the company also wants.
The story goes on
“Trian believes Disney’s recent performance reflects the hard truth that it is a troubled company with many challenges weighing on investor sentiment,” the hedge fund said in a statement last week.
“While we recognize that Disney, like many media companies, is making a challenging transition to streaming, Disney also benefits from ownership of world-class intellectual property, a more diversified business mix, and a Parks business that is at an all-time high profitability.” As such, we believe the company’s current issues are primarily self-inflicted and must be addressed immediately.”
Nelson Peltz Founding Partner of Trian Fund Management LP. speak at the WSJD Live conference in Laguna Beach, California on October 25, 2016. The activist investor is currently in a proxy battle with Disney.
Disney faced a tough 2022, when shares plunged about 45%, marking the company’s worst annual stock performance since 1974.
Streaming profitability, Hulu’s future, and a possible ESPN spinoff are at stake as Iger continues to navigate a troubled company grappling with leadership challenges, unfavorable price hikes, and a direct-to-consumer division. to make profits.
Alexandra is a senior entertainment and media reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at [email protected]
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