Disney’s thrilling saga against activist investor Trian has reached a momentous climax, with the entertainment powerhouse gaining the upper hand in the battle for board seats by securing over half of the votes cast, as reported by the prestigious WSJ on Monday.
Shareholder Support
BlackRock, Disney’s steadfast second-largest shareholder holding a notable 4.2% stake, stands proudly alongside other investors rallying behind the entertainment giant, according to reliable sources quoted in the WSJ report.
A validation of Disney’s vision, money manager T. Rowe Price affirmed its allegiance on Monday, proclaiming its intention to cast its vote in favor of Disney in the ongoing proxy battle. The firm, with a considerable 0.5% ownership equivalent to about 9.3 million Disney shares, expressed confidence in Disney’s management to navigate the company through vital challenges.
The Triumphant Turn
As the gripping narrative of Disney’s (DIS) shareholder strife unfolds, shareholders are currently in the throes of voting on the pivotal clash between Nelson Peltz from Trian and the esteemed Walt Disney CEO Bob Iger at the forthcoming annual meeting scheduled for Wednesday. The outcome remains uncertain, as the voting process is still ongoing, with jockeying investors retaining the option to modify their choices right up to the event, as disclosed by the WSJ.
The unveiling of Trian’s campaign, officially unveiled in the early months of 2024, has garnered support from key stakeholders. Influential proxy advisory firm Institutional Shareholder Services has extended backing to Nelson Peltz’s nomination but has refrained from endorsing Jay Rasulo, a former CFO of Disney. In contrast, Proxy firm Glass Lewis has thrown its weight behind Disney’s nominated directors.
Not content with merely standing on the sidelines, activist investor Blackwells Capital has since nominated a formidable cohort of three directors for consideration on Disney’s board.
Intriguing Alliances
Emerging as a formidable pocket ace, the California Public Employees Retirement System (CalPERS), the largest public pension plan in the U.S., confirmed its allegiance to Trian by casting its vote in favor of their director nominees. CalPERS, a heavyweight with a significant stake owning 6.65 million Disney (DIS) shares as of the closing chapter of 2023, has thus lent additional intrigue to an already riveting financial theatre.
