Disney has been a financial free fall of their own making.
Things are so bad that even South Park has taken aim at the once-dominant mouse.
And now, these two American billionaires just teamed up in a partnership that could force Disney’s hand.
Two billionaires are teaming up in a partnership that could force big changes at Disney.
Activist investor Nelson Peltz, who had failed in a bid to win a seat on Disney’s board of directors, has earned the backing of fellow billionaire and former Marvel executive Isaac Perlmutter, according to The Wall Street Journal.
The two billionaires are working together in a partnership that could force some big changes at Disney.
According to the Journal‘s report, Perlmutter is letting Peltz’s Trian Fund Management control his stake in Disney, which has resulted in boosting Peltz’s holding to about 33 million shares of Disney stock.
$DIS Disney’s management is under pressure for board changes as activist investor Nelson Peltz gets the support of a large shareholder, Ike Perlmutter. Activist investor Nelson Peltz has gained the support of Isaac Ike Perlmutter in his recent push for multiple board seats at the…
— Middat Yildiz (@middatyildiz) October 30, 2023
That means Peltz now has four times as many shares as he did when he first tried to win a board seat.
And that gives him incredible clout in dealing with Disney’s embattled CEO Bob Iger.
Perlmutter became a major Disney shareholder in 2009 after he sold Marvel to Disney for $4 billion.
He now says he will be pushing for Disney’s board to “immediately welcome one or more Trian board candidates,” according to the Journal article.
Even though Perlmutter is not seeking either a board seat or a job at Disney, he is pushing Disney to award multiple board seats to Peltz and his team.
“While I was a Disney employee, I was not comfortable publicly stating my views on the company and its performance,” Perlmutter said in a statement.
But it appears he is now very comfortable letting his thoughts be known.
“As someone with a large economic interest in Disney’s success, I can no longer watch the business underachieve its great potential,” he said.
Bad strategies and failed plans
When Peltz sought a Disney board seat earlier this year, he did so while calling for spending cuts at the company.
He also leveled criticism at Disney’s leaders. He said they supported bad strategies while failing to plan for succession at Disney.
It turns out Peltz wasn’t the only one.
In March, Disney ousted Perlmutter from his leadership post directing Marvel’s comic-book publishing and licensing businesses.
“I have no doubt that my termination was based on fundamental differences in business between my thinking and Disney leadership because I care about return on investment,” Perlmutter said at the time.
Disney’s corporate bylaws call for nominations for new board members to officially open on December 5 and run through January 4.
Should Disney not add Peltz or one of his supporters to the board during this time period, Peltz can wage an open battle to join the board at the company’s annual meeting later in the spring.
And with the new partnership with Perlmutter, Disney’s hand may be finally forced.
This would be good news for Disney stockholders who have seen their stock’s value steadily decrease in the last couple of years.
Read All About It will keep you up-to-date on any developments to this ongoing story.