Disney Proxy Battle: Who Is Nelson Peltz And Why Does He Want To Be Let Into The Magic Kingdom?

14.01.2023 - 19:35 / deadline.com

Investor Nelson Peltz’s broadside against the the Walt Disney Co., and the prospect of rare proxy fight at the media giant, stunned media circles this week — and a flurry of SEC filings over the past few days suggest plenty more fireworks to come.

The activist investor’s demand for a seat on the company’s board and criticism of management have drawn the full attention of a Wall Street already on tenterhooks about how returned CEO Bob Iger will right the ship. The famed exec’s encore run as Disney’s chief already faces a series of challenges, some industrywide, others self-inflicted.

Peltz may not be a household name, at least in the entertainment world, but he could play a significant role in the company’s direction — certainly if he manages to persuade other shareholders to vote him onto the board.

Activists tend to be brash, outspoken veterans of the Street. Perhaps the best-known in media circles is Carl Icahn, who tangled with Time Warner and Lionsgate. Third Point hedge fund chief Daniel Loeb drew fire from George Clooney during a clash with Sony and, more recently, delivered former Disney CEO Bob Chapek a list of demands like spinning off ESPN before eventually retreating. Elliot Management has been known to get personal, demanding the ouster of AT&T chief John Stankey and his former boss, Randall Stephenson, atop a list of grievances.

By comparison, Peltz’s objectives are more straightforward, and he claims to be supportive of current management. He and his investment firm, Trian Partners, are not contesting Iger’s CEO role or the current configuration of the company. Rather, they lament its stumbles given the potent asset mix, and see themselves as offering “new perspective to improve performance.”

Trian fired