Eight months after dropping his bid to join Walt Disney’s board, Nelson Peltz has changed his mind. The activist investor is back—with a bigger stake at the company–to ask for a seat at the boardroom table.
Peltz’s renewed interest in joining the board comes after he’s steadily built his stake in the entertainment giant to top $2.5 billion, the Wall Street Journal reported yesterday (Oct. 8).
A lot has happened in these months, from Disney’s hit-and-miss restructuring efforts internally to broader industry struggles because of the months-long writers and actors strikes. The Mouse House’s stock has slid more than 16% in that time, giving the 80-year-old investor and his Trian Group more ammunition for their corporate governance war.
Charted: Disney’s stock slide
One big number: Nelson Peltz’s Disney shares
30 million: The number of shares Peltz owns in Disney, up from around 6.4 million in the quarter ended June 30
Will Nelson Peltz get a seat on the Disney board this time?
Despite his relentless vigor, Peltz won’t be a shoo-in.
According to Disney, Peltz and Isaac Perlmutter, who was chairman of Disney’s Marvel Entertainment, had vied for Peltz to be added to the board at least 20 times since July 2022, but to no avail. In a Jan. 17 investor presentation filed with the US Securities and Exchange Commission, the company argued Peltz “does not understand Disney’s business and lacks the skills and experience to assist the board,” adding that he has no track record in large-cap media or tech.
Disney also debunked Peltz’s claim of not upsetting the leadership order of companies he’s been involved with, by pointing to the case of GE CEO Jeff Immelt, whom Peltz squeezed out as CEO a few years ago.
A brief timeline of Disney’s recent struggles
Feb. 9: Disney announces 7,000 layoffs as part of its restructuring plan to cut $5.5 billion in annual costs
June 16: Chief financial officer Christine McCarthy announces she’s stepping down.
July 13: Boomerang CEO Bob Iger says he’s open to the idea of Disney selling struggling linear TV assets, including ABC, and getting a “strategic partner” onboard for ESPN.
Aug. 10: Second-quarter results are promising for Disney’s parks but show that streaming customers are slipping away.
Sept. 15: Media entrepreneur Byron Allen reveals his $10 billion bid to buy the ABC television network and assets including the FX and National Geographic cable channels. Press reports suggest talks are being held with regional media company Nexstar, too.
Oct. 6: In India, where Disney has faced stiff competition from billionaire Mukesh Ambani’s JioCinema’s platform, the company’s assets are apparently up for sale. Disney has held talks with tycoon Gautam Adani, Sun TV owner Kalanithi Maran, and private equity firms, according to Bloomberg.