Disney Under Seige | Peltz Strikes Back | 2
Business Wars
Deep Dive
Why did Nelson Peltz decide to launch a fresh attack on Disney?
Peltz saw an opportunity to strike back after Disney's stock price continued to fall following Bob Iger's interview, which failed to reassure Wall Street about Disney's traditional TV operations.
What was Bob Iger's main message during his CNBC interview?
Iger acknowledged that the business model of linear TV is broken and no longer core to Disney, emphasizing the need for transformation in the company's distribution model.
How did Disney's stock price react after Iger's CNBC interview?
Disney's stock price dropped from $90 to $86 per share in the days following the interview, indicating that Iger's reassurances did not satisfy investors.
What was Nelson Peltz's primary request during his meeting with Bob Iger?
Peltz requested to be added to Disney's board of directors, along with two independent directors agreed upon by both parties, to address Disney's lagging margins and underperformance.
What significant change did Disney's board make to defend against Peltz's proxy fight?
Disney's board approved new bylaws making it harder for outside parties like Peltz to nominate candidates for the board, along with a cash dividend to appease stockholders.
Who were the key figures supporting Nelson Peltz in his proxy fight?
Peltz gained support from hedge fund Ancora Holdings and former Disney CFO Jay Russullo, while Disney enlisted the backing of Value Act Capital and Hollywood elites like George Lucas.
What was Nelson Peltz's key argument during his CNBC appearance?
Peltz criticized Bob Iger's $31.5 million compensation package, arguing it was unjustified given Disney's declining earnings and stock performance, and questioned the board's accountability.
How did Disney attempt to discredit Nelson Peltz's campaign?
Disney portrayed Peltz's challenge as motivated by revenge, highlighting his lack of experience in media and technology, and warned shareholders of the potential damage his involvement could cause.
What was the final outcome of the proxy fight?
Nelson Peltz lost the proxy fight, coming in 13th place out of 17 candidates for Disney's board seats, with Disney's nominees securing a substantial margin of votes.
What significant financial gain did Nelson Peltz achieve despite losing the proxy fight?
Peltz cashed out his Disney stock after the proxy fight, earning a billion dollars for himself and his investors, despite the stock's later rise in value.
Shownotes Transcript