Disney Just Can’t Shake Nelson Peltz as He Goes After a Board Seat Again: Report

Activist investor Nelson Peltz is taking another run at The Walt Disney Company’s board of directors.

Last January, Peltz, who did not support the return of Bob Iger as Disney CEO, started a proxy fight against Disney.

In February, Peltz-controlled Trian Fund Management withdrew its nomination of Peltz to the board after Disney announced that it would be making changes to its organizational and operating structures to cut costs and increase profitability. At the time, Trian said in a statement that the decision would allow Disney leadership to “focus on creating long-term shareholder value without the distraction of a proxy contest.”

Now, Trian is once again looking to request several board seats, including one for co-founder Peltz, sources familiar with the matter told The Wall Street Journal.

Trian is one of the largest shareholders in Disney, holding more than $2.5 billion worth of shares in the entertainment giant — its stake jumped to more than 30 million shares, up from 6.4 million at the end of the second quarter, according to the Journal. 

If Disney rejects Peltz’s bid, Trian is expected to put forward nominations during the Dec. 5-Jan. 4 nomination window, which will be voted on at Disney’s annual shareholder meeting in spring, sources told the Journal.

Peltz has served on the board of a handful of major consumer-goods firms, including Unilever, Mondelez International and Kraft Heinz. He has a net worth of $1.5 billion, according to Forbes.

The sources told the Journal, however, that Trian believes Disney’s shares are significantly undervalued and that the company is in need of a more focused and accountable board that is aligned with shareholders. Disney’s shares are valued at $83.87 each, significantly down from highs of around $110 early this year.

Iger announced in August that Disney will begin cracking down on password sharing and raising the cost of ad-free watching of its flagship streaming service, Disney+, in a bid to boost the company’s profits.

Last month, Disney also announced that it would invest almost $60 billion in its parks, experiences and products division over the next decade — nearly doubling its investment into the sector compared with the prior decade.

Iger, a “boomerang boss,” returned to helm Disney in July after a seven month hiatus, and said he will remain in the role until 2026. He served as CEO and chairman of Disney from 2005 to 2020, and then as executive chairman and chairman of the board through 2021. Trian had been urging Disney to plan for a successor, the Journal reported.

Trian and Disney did not immediately respond to The Messenger's request for comment.