Disney investors relieved as Nelson Peltz exits
Disney CEO Bob Iger is taking on a bigger role at Marvel Entertainment
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Lightshed Ventures partner Rich Greenfield discusses Disney's stock performance and says the sector is under pressure as consumer behavior changes on 'The Claman Countdown.'
Disney investors appear at ease after activist investor Nelson Peltz reportedly hit the road.
Shares of the media conglomerate rose Thursday, even as the broader market traded sharply lower, after CNBC reported Peltz’s firm, Trian Partners, had dissolved its entire $3.5 billion stake at $120 per share.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 97.98 | -0.04 | -0.04% |
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 39331.85 | +162.33 | +0.41% |
| SP500 | S&P 500 | 5509.01 | +33.92 | +0.62% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18028.763036 | +149.46 | +0.84% |
Trian declined FOX Business’s request for comment. Disney did not immediately respond to a request for comment.
Nelson Peltz, founder and CEO of Trian Fund Management, during the Future Investment Initiative Institute Priority Summit in Miami, Fla., March 30, 2023. (Marco Bello/Bloomberg via Getty Images / Getty Images)
In a bad blood battle that lasted for months, Iger defeated the activist’s push for board seats amid Disney's underperforming stock, winning election of its full slate of 12 directors at the company’s annual meeting in April.
"I want to thank our shareholders for their trust and confidence in our board and management. With the distracting proxy contest now behind us, we’re eager to focus 100% of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers," Disney CEO Bob Iger said following the vote.
Disney CEO Bob Iger attends the Oscar Nominees Luncheon at the Beverly Hilton in Beverly Hills, Calif., Feb. 12, 2024. (Valerie Macon/AFP via Getty Images / Getty Images)
Peltz had turned into Iger’s nemesis, first with a $900 million stake in the company as of January 2023, which rose to $3.5 billion as of April 2024.
Following its board battle defeat, Trian responded, "While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders. We are proud of the impact we have had in refocusing this company on value creation and good governance."
Disney shares have gained more than 14% during the last 12 months, compared to the S&P’s 26%.
Disney
In the second quarter, reported this month, Disney generated $22.08 billion in revenue, up from $21.82 billion in the same three-month period last year, but fell short of Wall Street estimates. Adjusted earnings per share excluding certain items were $1.21, above the $1.10 estimate.
The combined streaming business, a future growth driver, saw revenues of $6.19 billion and an operating loss of just $18 million in the second quarter. That operating loss represented a decrease of 97% from the same period last year.
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Superhero fatigue was evident as two out of three Marvel films released this year bombed at the box office. (Disney / Fox News)
"While we’re anticipating a softer third quarter due in large part to the seasonality of our India sports offerings, we fully expect streaming to be a growth driver for the company in the future, and we have prioritized the steps necessary to achieve this," Iger added.
Iger also promised to help manage Marvel Entertainment with the focus on quality versus quantity after a string of disappointing films. The yearly amount of Marvel television series and movies will "probably" become two for the former and three at most for the latter, the Disney CEO said.
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A cosplayer dressed as Zombie Captain America from "What If?" and the Marvel Universe during the first day of Comic Con at Javits Center Oct. 7, 2021, in New York City. (Roy Rochlin/Getty Images / Getty Images)
"Investors are really looking for where is that great content? All of those franchises Disney owns and controls, where is the success of that content?" Rich Greenfield, Lightshed Ventures Partner, said during an appearance on "The Claman Countdown" ahead of Disney’s results.