Activist investor Nelson Peltz lost his proxy battle for a seat on Disney’s board of directors, but at least he left the fight a little bit richer.
The Wall Street Journal, citing unnamed sources familiar with the matter, reports that Peltz’s asset management firm, Trian Partners, made about a $300 million profit from its 16-month investment in Disney stock.
Trian Partners did not immediately respond to a request for comment.
The firm bought $800 million worth of Disney shares in 2022 for about $88 a share, before Peltz launched his first campaign for a seat on the board. The company sold about a third of its stake in 2023 after Peltz dropped his bid, making about a $60 million profit.
Later that year, former Marvel Entertainment Chairman Ike Perlmutter gifted Trian control of his stake in Disney. Perlmutter became one of the media giant’s largest shareholders after he sold Marvel Entertainment to Disney in 2009 for $4 billion. In 2023, Perlmutter was ousted from the company.
As part of its arrangement with Perlmutter, Trian receives about a 10% cut in gains made from Perlmutter’s shares — so far this has resulted in a profit of about $85 million for the firm.
To date, the firm has seen a roughly 40% return on its investment in Disney stock. Accounting the estimated $25 million Trian spent on its proxy battle with Disney, that’s a profit of about $300 million, according to the Journal.
Peltz to keep his eyes on Disney
Disney prevailed Wednesday in its months-long and expensive proxy battle with Peltz, as shareholders elected CEO Bob Iger and the company’s other nominees to the media giant’s board of directors.
“While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders,” Trian Partners, which controls a $3.5 billion stake in the company, said in a statement. “We will be watching the Company’s performance and be focusing on its continued success.”