Staff Reports
In a surprising turn of events, billionaire activist investor Nelson Peltz has found a powerful ally in his quest to shake things up at Disney. The Wall Street Journal reported on Sunday that Peltz now has the backing of fellow billionaire and former Marvel executive Isaac Perlmutter. Through this partnership, Perlmutter is allowing Peltz’s Trian Fund Management to control his stake in the company, ultimately increasing Peltz’s holding to around 33 million shares.
Two Billionaires Just Teamed Up to Create a Nightmare Scenario for Disney via @WestJournalism https://t.co/K1gwcD8qA8
— Joyce Taylor (@JTaylorForMAGA) October 30, 2023
Perlmutter became a significant Disney shareholder after selling Marvel to the company for a whopping $4 billion back in 2009. He has made it clear that he intends to push for Disney’s board to welcome one or more Trian board candidates right away. Peltz, having failed to win a seat on the board last year, is expected to go after multiple seats this time around. With his increased number of shares, he will certainly have more influence in negotiating with Disney CEO Bob Iger.
Notably, Perlmutter himself is not seeking either a board seat or a job within the company. In a statement, he explained that while he was an employee at Disney, he didn’t feel comfortable expressing his views publicly. However, as someone with a large economic interest in Disney’s success, he can no longer stand by while the company underachieves its potential.
When Peltz previously sought a seat on Disney’s board, he called for spending cuts and criticized the company’s leadership for supporting bad strategies and failing to plan for succession. Perlmutter can personally testify to the consequences of differing business philosophies, as he was ousted from his leadership position at Marvel earlier this year due to fundamental differences in business with Disney.
Disney’s rules state that nominations for new board members will officially open on December 5 and continue until January 4, giving Peltz a window of opportunity to make his move. If Disney refuses to add a Peltz supporter to the board, he can wage an open fight to join at the company’s annual meeting next spring. This partnership between Peltz and Perlmutter certainly has the potential to bring about significant changes within Disney’s boardrooms.
