Whatâs Going On Here?Veteran activist investor Nelson Peltz has his eyes on Disneyâs tail â or uh, boardroom, according to news out on Wednesday. What Does This Mean?Nelson Peltzâs investment firm Trian has a $900 million stake in Disney already, and itâs now pushing for a seat on the board to ârestore the magicâ that's been lost in recent years. See, after overspending on streaming services and some questionable mega-mergers, the firmâs stock price is currently languishing near eight-year lows. But Disneyâs already pinned its turnaround hopes on recently reinstated leader Bob Iger, and itâs not on the lookout for a second Prince Charming. So if Peltz wants to nab a seat in Disneyâs boardroom, he may have to win over shareholdersâ votes in a so-called proxy fight instead. Why Should I Care?For markets: Prepare for a catfight.
Nelson Peltz and Trian Partners have acted as the corporate worldâs fairy godmothers in the past, boosting fortunes for the likes of Procter & Gamble, Tiffany & Co., and Comcast. And just last summer, Peltz managed to shove his way onto Unileverâs board and work his magic on its share price too. So sure, Disney and its new chief are rapidly unveiling some radical plans of their own, including cost cuts and boardroom shakeups. But if thatâs not enough to convince lovelorn shareholders, Peltzâs glimmering track record might just do the trick.
Zooming in: Bobâs big task.
Streaming platforms were once an affordable alternative to rip-off cable bills, but nowadays a handful of subscriptions can set you back more than OG TV used to. Thatâs one of the problems faced by Disney and its ilk: with customers cutting down on spending, making knock-out shows is the only way to ensure your subscriptionâs not on the chopping block. Problem is, crowd-attracting blockbusters can be pricey to produce, and Disneyâs already in the dock for its excessive spending. | 