Activist investor Nelson Peltz has bowed out of his ongoing proxy fight with Disney, following returned CEO Bob Iger‘s announcement of a sweeping restructuring plan Wednesday.
“Now Disney plans to do everything we wanted them to do,” said Peltz, the billionaire Trian Fund Management CEO and founder, while appearing on CNBC’s “Squawk on the Street” on Thursday morning. “We wish the very best to Bob, this management team and the board. We will be watching. We will be rooting. The proxy fight is over.”
In a followup statement to PvNew, a Trian spokesperson /confirm/ied: “The proxy fight is over. This is a win for all shareholders.”
Following Peltz’s public remarks, Disney issued its own statement regarding Trian’s decision to end the proxy fight ahead of the April 3 shareholders meeting.
“We respect and value the input of all our shareholders and we appreciate the decision by Trian Fund announced by Nelson Peltz this morning,” Disney’s statement reads.“This is a moment of great opportunity for The Walt Disney Company, as we recommit to our historic 100-year legacy of unrivaled creativity and a future of sustained growth and profitability. We are pleased that our Board and management can remain focused without the distraction of a proxy contest, and we have tremendous faith in Bob Iger’s leadership and the transformative vision for Disney’s future he set forth yesterday. We will continue to engage with all our shareholders, and we look forward to our upcoming annual meeting on April 3, 2023. All shareholders of record as of the close of business February 8, 2023 are entitled to vote at the meeting.”
The months-long battle comes to a close less than a day after Iger revealed a Disney re-org during the company’s earnings call Wednesday, his first presentation to investors since returning as CEO.
Iger’s plan has the Mouse House consolidating its segments down to three: Disney Entertainment (which will be run by Disney TV chief Dana Walden and film head Alan Bergman), ESPN (overseen by James Pitaro) and Disney Parks, Experiences and Products (still headed up by Josh D’Amaro). The Disney Media and Entertainment Distribution unit created by former CEO Bob Chapek, who was ousted last November and replaced by his predecessor Iger, was absorbed into the newly created Disney Entertainment.
Peltz appeared on CNBC following Iger’s own on-camera interview with the cable news network’s David Faber. During Iger’s portion, he spoke about the multiple possibilities ahead for Hulu, with the current industry-wide assumption being that Disney will buy out Comcast’s stake in the streamer as previously planned next year.
“I’m not gonna speculate about whether we’re a buyer or seller of it,” Iger said. “I obviously have suggested that I’m concerned about undifferentiated general entertainment, particularly given the competitive landscape that we’re operating in, and we’re going to look at it very objectively.”
