Peltz, citing changes at Disney, ends push for set on board

Streaming HUBFebruary 9, 2023

Activist investor Nelson Peltz has called off a proxy fight with Disney a day after newly returned CEO Bob Iger announced a major restructuring of the company that includes thousands of job cuts.

Peltz called into CNBC on Thursday to say that his firm, Trion Fund Management, got everything it wanted with the changes imposed by Iger.

“We’ll be watching, we’ll be taking sides, and the proxy fight is over,” Iger said.

Peltz announced last month that he would seek a seat on the entertainment company’s board, citing a failed succession after Iger left two years ago and named Bob Chapek as his replacement. Was. Peltz cited “over-the-top” compensation for executives and other issues.

Disney said Wednesday it would cut about 7,000 jobs as part of an ambitious companywide cost-savings plan and “strategic restructuring.”

The global workforce cut by about 3% at the entertainment giant was unveiled after Disney reported quarterly results that topped Wall Street forecasts.

That apparently was good enough for Peltz, who even after Chapek’s ouster and Iger’s return, began fighting for a board seat.

The company, which owns Star Wars, Marvel and Pixar, said this week it would focus more on its core brands and franchises, Iger said.

The executive also announced changes to how executives would run Disney’s various divisions. Specifically, creative executives will now be responsible for determining which movies, TV series or other content to produce, as well as marketing and distribution.

Shares of Disney, based in Burbank, California, rose 2% on Thursday.

Iger had chosen Chapek as his successor, whose two-year tenure was marked by conflict, missteps, and weak financial performance. Iger’s return to Disney and Chapek’s ousting came just weeks after Disney’s quarterly financial performance fell well short of Wall Street’s expectations on both profit and revenue.

While Disney’s theme park business has been doing well, over the past two years many visitors have criticized increased prices and other moves made by the company, including the Magic Express bus service from the airport to the Walt Disney World in Orlando, Florida. end is included. Disney World Resorts’ implementation of the Genie plan and ride reservation system and its theme park reservation system.

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