For over a year now, Nelson Peltz has earned the title of “Bob Iger’s Biggest Villain.”
©The Walt Disney Company
Gaining important supporters and working to become part of the Walt Disney Company board of directors, Nelson Peltz has made a name for himself as the man who wants to take over Disney. He had recently acquired roughly 33 million shares of the Disney company, giving him lots of pull with the board. He has shared that when time comes in December, he’ll be on the hunt for more than just one seat at the board. But now, it turns out Nelson Peltz might have some competition.
Over the summer, at the height of the WGA and SAG-Aftra strikes, one activist company had been quietly purchasing Disney stock while the company was hitting its $80 low. Now, after months of acquisition (and the continuation of it), ValueAct Capital has a significant stake in the company. (CNBC)
©ValueAct
ValueAct is an investment company that has played big roles for popular brands like the New York Times, Spotify, and Microsoft. They have had board seats on numerous technology brands such as Salesforce, Microsoft, and Adobe and are active investors in media sources like the New York Times, Spotify, and 21st Century Fox.
At Salesforce, where ValueAct has a current board spot, the margins have gone from 18% to 32% and the stock has gone from $130 to $220 in just 10 months.
©Salesforce
Even with its hands in all these other companies, Disney is now one of ValueAct’s top investments. Since this revelation, Disney, a company well-versed in technology and media, has been in communication with this new investor.
ValueAct believes, after looking at the documents, that Disney parks ALONE represent the low $80 per share that the whole company has been at this year. And with the benefit (not hindrance as with many companies) of technology on the entertainment company’s side, ValueAct believes they could make a significant improvement in Disney’s stock prices.
©Disney
According to CNBC, “ValueAct has a history of creating value through board seats, including at Salesforce and Microsoft, but has also added value as active shareholders in situations like Spotify and the New York Times.” But which way would they try to lead Disney? Kenneth Squire from CNBC expects they would be looking for a board seat. And with the ongoing open conversations between the two companies, this seems like a more likely scenario than Nelson Peltz getting his seat on the board.
©New York Times Nelson Peltz of Trian Partners
Since the Disney board has shared that long-term succession is one of its top priorities, working with an investment company with such an impressive track record as ValueAct could be a great move. But the question, then, is where does that leave Peltz? With December approaching quickly, we’ll have to wait and see if a new proxy battle will begin.
In the meantime, keep following DFB for more Disney news.
Disney Announces Four BIG Priorities for Next Year
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Let him go or there won’t be nobody come to Disney. An also give our channel back. I guess I’ll have to find streaming but not anything has to do with Disney it makes me sick
Disney’s problems all boil down to its less than stellar creative releases which all boil down to its current sub par writing and story telling. A strong selling new movie release will drive merchandise and Disney Park revenue. A house cleaning is needed, starting with Iger and many in the creative area. Dump the Woke agenda, and return to traditional.