- Activist investor Nelson Peltz sells his entire stake in Walt Disney Company following proxy battle loss.
- Peltz’s sale, reportedly at $120 per share, nets approximately $1 billion; Disney shares currently trade around $100.9.
- Trian Partners, Peltz’s investment firm, loses bid for Disney board seats in April, despite earlier criticism of Disney’s governance and strategy.
The Walt Disney Company finds itself at the centre of investor attention as activist shareholder Nelson Peltz makes a significant move. In the wake of a failed proxy battle and amid ongoing criticism of Disney’s governance and strategic direction, Peltz has chosen to offload his entire stake in the entertainment giant.
Peltz sells Disney stake after proxy battle loss
Activist investor Nelson Peltz has divested his entire stake in the Walt Disney Company following a failed proxy battle, as reported by CNBC. Peltz sold his Disney shares at approximately $120 each, yielding earnings of about $1 billion, while the current market price stands at around $100.9 per share.
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Proxy battle fallout
Peltz’s investment firm, Trian Partners, suffered defeat in a proxy battle at Disney’s shareholders’ meeting in early April. Despite Peltz’s efforts to secure board seats for himself and former CFO Jay Rasulo, Disney re-elected its full board of directors. Peltz has long been critical of Disney’s governance and strategic decisions, particularly regarding its streaming strategy and CEO succession plan.
Market response and performance
Despite the turmoil, Disney shares have shown resilience, experiencing an 11% increase in value this year, slightly outperforming the S&P 500 index. Trian Partners issued a statement post-proxy battle, expressing pride in its role in refocusing Disney on value creation and governance, despite the outcome.
