On Wednesday, April 3rd, Disney will hold its annual shareholder meeting. Unlike previous meetings, however, there will be a lot at stake.
At the meeting, investors will voting on three competing board candidate slates. The first is Disney’s own (preferred) dozen, which includes current CEO Bob Iger.
The second will be nominated by “activist investor” Nelson Peltz through the asset firm Trian Fund Management. A third will be from another investment firm known as Blackwells Capital.
While Variety reports that Bob Iger is in a very comfortable position to remain on the board with his slate, Peltz and his company are not letting up, reportedly spending at least $25 million to campaign for seats at the table. And it’s not for the reason you might think.
Sure, Iger may have caught some flack last year due to his response to the Hollywood strikes – as well as recent company output – but Peltz wants him out because he thinks the company is worth a lot more. Although his intentions may not be pure, he’s not entirely wrong. Netflix has only been around for a fraction of the time Disney has, and it owns zero theme parks in zero countries. Still, it’s stock price is 6x that of Disney’s.
Peltz is adamant that fresh or – in the case of former Disney chief financial officer Jay Rasulo, who he also wants to bring to the board – refreshed faces could accomplish that.
“Disney fell from its No. 1 position at the box office, was late to enter the streaming business and doubled down on linear TV at the wrong time,” Trian said in a letter downplaying Iger’s leadership to Disney shareholders. If Peltz is successful, he and Rasulo could strongly influence the company’s direction. So much so, that some analysts believe it could force Iger to depart the company sooner than originally plan.
It is important to note that, despite Peltz’s daughter being an actress (Nicola Peltz, from Transformers 4 & The Last Airbender), he has no entertainment experience. And it’s a point that Disney has continued to emphasize to its shareholders. However, Peltz pledges to work with current leadership should he be elected to the board.
On top of digging into its deep pockets to secure its seats, the House of Mouse has also reportedly rallied the support of big names and fellow company heads such as George Lucas, JPMorgan Chase chief Jamie Dimon, former Disney CEO Michael Eisner and billionaire philanthropist Laurene Powell Jobs.
Whatever happens, the trajectory of the company is sure to change forever. Even if Peltz loses, then there’s no doubt Disney will do whatever it can to ensure no other billionaires come close to attempting a hostile takeover ever again.
The results of the vote, which is believed to already be under way, will be revealed during the meeting.
Eligible shareholders can participate in the virtual meeting at this link; Disney also is hosting a live webcast at this link.
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