CEO of Trian Partners and activist investor Nelson Peltz has been pressuring Walt Disney to make changes, and now Peltz wants to be more involved.
Peltz and James Rasulo, the former Disney Chief Financial Officer, were proposed for board director positions by Trian, a significant Disney stakeholder.
READ MORE: 300 Titles Will Be Removed From Hulu After Comcast Sells To Disney
In 2024, during Disney’s annual shareholder meeting, the two will run for office.
Peltz had declared last month that he will take his case directly to the shareholders and is looking for additional stockholders who are upset to lend support. It represents the most recent issue facing the House of Mouse. The studio has had a number of box office setbacks, including the depressing release of the animated movie Wish last month, which followed The Marvels’ underwhelming reception. Disney+, which combined with Hulu during a beta test, is still losing money, and the business is still attempting to decide how to handle ESPN. By allowing the sale of properties such as ABC and ESPN, CEO Bob Iger inadvertently created controversy. This led to Allen Media Group—the company behind Local Now and The Weather Channel—submitting an unsolicited proposal for the ABC Network and its cable networks.
READ MORE: Disney+ And Hulu’s Merger Could Topple Netflix On The List Of The Most Popular Streaming Services
As the most active stakeholder in Disney, Peltz stated in a statement, “We can no longer stand by while the current directors and their hand-picked successors obstruct the necessary change, and peers and competitors continue to outperform.” “We believe that the Disney Board has not carried out its fundamental duties, which include supervising the creation of a winning strategy, organizing a smooth transition of power, tying executive compensation to performance, and holding operational execution accountable.”
Disney affirmed the nominations while standing by its long-term plan.
READ MORE: Disney CEO Confirms Talks With Tech Firms About Collaborating On ESPN’s New Streaming Service
According to a statement from the company, “Disney has an experienced, diverse, and highly qualified Board that is focused on the long-term performance of the Company, strategic growth initiatives including the ongoing transformation of its businesses, the succession planning process, and increasing shareholder value.”
Disney cited Trian’s affiliation with former Disney executive Isaac Perlmutter, whose ownership interests account for a significant portion of Trian’s investment in the business. Disney fired Perlmutter earlier this year, citing the former executive’s personal vendetta against Iger, according to Disney.
Rasulo said, “The Disney I know and love has lost its way,” in the statement.
Radiant and America Nu, offering to elevate your entertainment game! Movies, TV series, exclusive interviews, music, and more—download now on various devices, including iPhones, Androids, smart TVs, Apple TV, Fire Stick, and more.
