Updated April 3rd, 2024 at 15:04 IST

Disney emerges victorious over Trian in boardroom battle

The final outcome of this high-profile board fight is expected to be announced at Disney's annual shareholder meeting scheduled for Wednesday.

Reported by: Business Desk
Disney board fight | Image:Disney
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Disney board fight: Walt Disney Co (DIS.N) has emerged victorious in a boardroom battle against Nelson Peltz's Trian Fund Management and Blackwells Capital, news agency Reuters reported, quoting sources familiar with the matter.

According to the report, Disney has garnered sufficient shareholder votes to secure its board directors against challenges posed by Trian, which had nominated Nelson Peltz and former Disney CFO Jay Rasulo as director candidates. Similarly, Blackwells Capital, another hedge fund, saw its bid to nominate three board directors at Disney thwarted.

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The final outcome of this high-profile board fight is expected to be announced at Disney's annual shareholder meeting scheduled for Wednesday. However, the sources cautioned that shareholder votes could still change before the official announcement, the Reuters report added.

Despite the boardroom tension, Disney's shares have seen significant growth, surging nearly 50% since October when Peltz signaled his intent to seek board seats. In recent months, Disney has made strategic moves to restore investor confidence, such as investing in Epic Games, the developer behind "Fortnite," and unveiling plans for an ESPN streaming service set to launch in 2025. Additionally, the company has refreshed its board with the addition of two new members.

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Trian and Blackwells had argued for fresh perspectives in Disney's boardroom, citing concerns over succession planning, creative stagnation, and adaptation to new technologies. Bob Iger, who returned to lead Disney for a second stint in 2022, has been focused on revitalizing the company's creative franchises, turning its streaming business profitable, and exploring partnerships to enhance ESPN's digital footprint.

(With Reuters inputs.)

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Published April 3rd, 2024 at 15:03 IST