Hedge fund manager Nelson Peltz (Trades, Portfolio) maintains a positive outlook on the future of the Walt Disney Company (DIS, Financial), even after a recent defeat in a board proxy fight. Peltz trusts the newly appointed Chairman of the Board, James Gorman, to find a suitable successor for CEO Bob Iger by the end of 2025. Though his company, Trian Fund Management, did not succeed in gaining board influence, Peltz remains focused on Disney's stock performance and warns he may re-engage if the stock price declines further.
Peltz expresses confidence in Gorman's leadership and his commitment to addressing Disney's succession planning. Gorman, formerly CEO of Morgan Stanley, has recently taken the role of Disney's Board Chairman. Peltz speculates that Disney will appoint a new CEO by early 2026, replacing Iger, who returned to the top position in 2022.
Despite Trian Fund Management's unsuccessful proxy contest, Peltz has critiqued Disney's streaming operations, succession strategy, and stock price. In April, his and another nominated candidate were excluded from the board after an investor vote. The proposed board list by Disney triumphed over Trian's and Blackwells Capital's rival lists in what became one of the costliest proxy battles in history.
Peltz attributes his loss to large index funds that manage trillions for investors, claiming they didn't want him to win. He initially invested in Disney in the mid-1980s, selling his entire stake at $119 per share post-defeat, profiting from an original purchase price of around $80 per share.
Regulatory filings from Wednesday reveal that Peltz's fund sold its last batch of Disney shares in Q3, liquidating approximately 2.6 million shares. In October 2023, when Peltz announced the proxy battle, Trian held 30 million Disney shares. Peltz warns he may re-enter if Disney's stock price falls to around $80 per share.
Earlier attempts by Peltz to secure a Disney board seat were rebuffed, leading him to withdraw his nomination in February 2023 after Disney announced significant cost-cutting measures.
Additionally, Peltz expresses skepticism about the sustainability of the post-election stock market rally, warning of potential disruptions due to unforeseen events.
Disney's stock closed at $102.72 on Wednesday, with fourth-quarter earnings expected to be announced after market close on Thursday.
