Trian Partners LP founding partner Nelson Peltz said Thursday that his proxy battle with Walt Disney Co. is over.
(Bloomberg) — Trian Partners LP founding partner Nelson Peltz said Thursday that his proxy battle with Walt Disney Co. is over.
The activist investor had announced in January that he would seek a board seat at the company to try to initiate change after earlier being rebuffed in his outreach. Peltz changed his mind after Disney Chief Executive Officer Bob Iger announced plans for a dramatic restructuring on Wednesday’s earnings call.
Peltz announced the news in an interview with CNBC. Trian confirmed the decision to drop the proxy battle, calling it a “win for all shareholders.”
Iger’s plans for the world’s largest entertainment company include 7,000 job cuts and $5.5 billion in cost savings. He also said Disney’s board would consider reinstating the company’s dividend, which was suspended at the start of the pandemic.
The moves addressed two of Peltz’s biggest complaints. “We are pleased that Disney is listening,” Trian said in a statement after Iger’s announcement.
Proxy fights are expensive and can run into the tens of millions of dollars. Trian also likely already saw a sizable gain on its $1 billion stake in Disney, with the shares climbing 32% so far this year.
The proxy fight had been shaping up to be one of the biggest board showdowns of 2023. Activist investing has been on the rise this year as large tech and health stocks have lagged and it’s become easier for investors to nominate their own directors under new regulatory rules. With Peltz out of the way at Disney, the big corporate drama to watch now will be what happens with Salesforce Inc., which is being targeted by Elliott Investment Management and several other activist investors.
–With assistance from Liana Baker.
(Updates with Trian confirmation in third paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.