Activist investor Nelson Peltz, who dropped a long battle with Disney early this year, has amassed a large stake in the media giant and is said to be seeking board seats."Peltz” Trian Fund, one of Disney’s largest investors with a stake valued at upward of $2.5 billion, is expected to request multiple seats on the board of directors, including one for himself, according to the Wall Street Journal, citing people familiar with the matter.The investor abandoned his proxy fight with Disney in February.Trian declined comment, as did Disney.Peltz formally launched his campaign aggressive proxy campaign in January including outreach to Disney shareholders seeking seats on the board at the company’s annual meeting when directors are elected. Bob Iger had returned to helm Disney in November, replacing Bob Chapek. He announced sweeping layoffs and structural shifts. Peltz backed off.“We congratulate Disney and Bob Iger on their recently announced operating initiatives, which are a win for all shareholders and broadly align with our thinking. We are pleased with the role that Trian was able to play in helping to focus the Board to take decisive actions which we believe will lead to better financial results. We were also pleased to see the Company’s pledge to restore the dividend. Accordingly, we are withdrawing our nomination of Nelson Peltz as a director to allow the Board and Disney’s leadership team to focus on creating long-term shareholder value without the distraction of a proxy contest. Now it’s about execution and ensuring best in class corporate governance going forward. We will be watching and rooting for the Company’s success,” Trian said Feb. 9.At the time, Trian owned 9.4 million common shares of Disney valued at about $1 billion — less now as the stock has not had a good run recently. The shares are trading today at about $83, up slightly from Friday’s close in an an overall down market spooked by Mideast violence. But the shares are well below a 2023 high of about $111 in January.The latest news comes as Disney faces headwinds at its parks after a massive post-Covid boom, and ongoing pains in linear television. Iger has indicated that he could potentially remake the company, seeking partners for ESPN as it considers taking the network over-the-top, and exploring strategic options for the ABC broadcast business and cable networks. 9-Disney also wants to buy out Comcast’s stake in Hulu. Disney owns two thirds of the streamer, Comcast a third, with a put/call agreement set to trigger in late Nov. The two sides recently moved up the date to kickstart the valuation process, which could take some time.At the time of first Peltz battle, Disney said his election to the board “would threaten the strategic management of Disney during a period of important change in the media landscape.” The changes are ongoing. The company ha said it’s on track to surpass $5.5 billion in cost savings. It is focusing on key brands and franchises, streamlining its theatrical release slate, and expanding its investment in theme parks and cruise ships (to about $60 billion over ten years).Trian calls itself a “highly engaged shareowner” that “seeks to invest in high quality but undervalued and underperforming public companies and to work collaboratively with management teams and boards to help companies execute operational and strategic initiatives designed to drive long-term sustainable earnings growth for the benefit of all shareholders.”Disney’s fiscal year ends Sept 30. It reports fourth-quarter and full year results on Nov. 8.
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