Peltz’s Trian Fund Management LP cemented its demands for an overhaul of Disney’s board and a recasting of its business strategy. — Bloomberg
NEW YORK: Nelson Peltz has published his manifesto for change at Walt Disney Co, as the activist prepares to face off against the entertainment giant at an investor meeting next month.
In a 133-page white paper entitled “Restore the Magic at The Walt Disney Company” released on Monday, Peltz’s Trian Fund Management LP cemented its demands for an overhaul of Disney’s board and a recasting of its business strategy.
Peltz contends Disney should find a partner for its traditional TV channels, similar to the joint venture it has for its A&E networks.
Such a move would lessen Disney’s exposure to that shrinking business, while giving employees their “more control over their destiny”.
Trian is trying to get Peltz and Jay Rasulo, a former chief financial officer at Disney, elected to the company’s board at its AGM on April 3.
The firm also wants to, among other things, put in place a succession process for chief executive officer Bob Iger, initiate a review of studio operations and culture and formulate a digital strategy for Disney’s ESPN sports asset.
A group put together by Trian holds roughly US$3.5bil in Disney stock.
“We believe Disney has lost its way in the past decade.
“It has made strategic and operational missteps that have resulted in deteriorating financial performance and poor absolute and relative stock returns, costing shareholders billions,” Trian said in a statement.
Shares in Disney were up 1.6% at the close in New York on Monday, giving the company a market value of about US$209bil. A representative for Disney didn’t immediately provide a comment.
Disney’s board is asking shareholders to vote for its slate of 12 candidates at next month’s shareholder meeting and reject those put forward by Trian and a few others. — Bloomberg
