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LightShed Ventures partner Rich Greenfield reacts to activist investor Nelson Peltz vying for a seat on Disney’s board as the media industry experiences a ‘dramatic change’ in viewing behavior.
Less than a week after activist investor Nelson Peltz filed a preliminary proxy statement for a seat on Disney’s board of directors and said the media giant was “in crisis,” the entertainment giant is pushing back.
On Tuesday, the Walt Disney Company responded to Peltz’s Jan. 12 filing with the Securities and Exchange Commission (SEC), stating the Trian Group founder “Does not understand Disney’s businesses and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem.”
Trian’s Nelson Peltz “Does not understand Disney’s businesses and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem.”
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Last week, in the filing, Peltz also said Disney had lost its way, “resulting in a rapid deterioration in its financial performance.” The asset management firm also said they could “help Disney restore the magic.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 99.40 | -0.41 | -0.41% |
Disney says, Nelson Peltz founding partner of Trian Fund Management, “has no track record in large cap media.” (Reuters/Mike Blake / Reuters Photos)
In the filing, Disney also alleged the Train Group’s analysis of the company’s financial transactions were fundamentally flawed, while also refuting a series of reported claims from Peltz on his intentions to remove Bob Iger as CEO and Disney’s lack of strategy, operating initiatives, and new ideas.
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Disney also highlighted the company’s investment grade balance sheet and Bob Iger’s value through market capitalization growth during his tenure, merger and acquisition deals, and the $89 billion returned to shareholders.
Iger recently returned as CEO replacing Bob Chapek, who clashed with employees and bungled several culture issues for the company.
Activist investor thinks Disney and CEO Bob Iger have “lost their way”. (Kim Kyung-Hoon – Pool /Getty Images / Getty Images)
While Disney has not responded to inquiries from FOX Business, the Trian Group declined to comment on the matter.
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