Wednesday is anticipated to mark the official conclusion of a multimillion-dollar, mudslinging dispute over Walt Disney’s future, as the corporation reports that shareholders rejected two bids from hedge funds to restructure the board of the entertainment behemoth.
According to people familiar with the situation who spoke with Reuters, Disney was able to collect enough votes from shareholders on Tuesday to overcome a challenge from billionaire investor Nelson Peltz and Blackwells Capital. The sources issued a warning, pointing out that it was possible for certain shareholders to switch their votes.
In the near term, Disney is happy with the outcome since it puts an end to months of uncertainty and distraction for Iger and the management group of the corporation. However, it also means that as the firm tries to manage customers’ move away from traditional cable packages and toward largely unprofitable streaming services, Disney’s board will be under considerably more pressure to produce results.
Activist Blackwells Capital, which pushed for the addition of its three nominations to the present board, was blocked by Disney in addition to Peltz, who had campaigned for seats for himself and former CFO Jay Rasulo.
Following the announcement, Disney’s stock experienced a decline, with shares closing more than 3% lower.
Along with the support of well-known individuals like Jamie Dimon, CEO of JPMorgan, George Lucas, filmmaker and creator of “Star Wars,” Walt Disney’s and his brother Roy’s grandchildren, and Laurene Powell Jobs, the widow of former Apple CEO Steve Jobs and a longtime investor in the company, Disney also had the support of the well-known proxy firm Glass Lewis.
Peltz received support from prominent proxy advisory firm Institutional Shareholder Services (ISS) before the vote, in addition to prominent investors such as the nation’s largest public pension fund, CalPERS; international asset manager Neuberger Berman; and activist Ancora.