Disney gears up for proxy fight with activist investor

In a high-stakes battle for control at Disney, billionaire activist shareholder Nelson Peltz faced off against veteran Disney chair and CEO Bob Iger in a costly proxy fight that saw tens of millions of dollars wasted. Peltz, worth around $US1.7 billion, sought to shake up the board at the iconic company known as ‘The Mouse House’.

After a long and bitter shareholder proxy vote, it was revealed that Iger and the Disney board had prevailed, leaving Peltz and his supporters defeated for the second time in two years. The battle saw Disney’s share price rise more than 40%, only to drop over 3% after the vote.

Meanwhile, news emerged that Paramount, the company that owns Australia’s Ten Network, is on the verge of being sold to private investor Skydance. Speculation now swirls around a potential breakup of Paramount, shifting focus away from the Disney drama.

Peltz, known for his aggressive tactics, had tried to secure two seats on the Disney board but was ultimately rejected by shareholders. Despite the hefty $US100 million spent by both sides in the battle, Disney’s largest shareholders, including Vanguard and BlackRock, sided with management in the end.

The fight with Peltz was not the first for Disney, as Iger had previously stepped down in 2020 only to return due to dissatisfaction with his successor. Peltz’s demands for a board seat and criticism of Disney’s management led to a public showdown that ultimately ended in defeat for the activist investor.

As the dust settles on this latest boardroom clash, attention turns to the future of Disney and who will succeed Iger. Board member Dana Walden emerges as a top contender, with her extensive media experience positioning her as a potential replacement for the long-standing CEO. The saga continues as Disney navigates its way through corporate battles and leadership transitions in the ever-evolving entertainment industry.