(Bloomberg) — Nelson Peltz has released a manifesto for transforming the Walt Disney Co. as he prepares to take on the entertainment giant at an investor conference next month.
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In a 133-page white paper released Monday titled “Reclaiming the Magic of the Walt Disney Company,” Mr. Peltz's Trian Fund Management LP called for an overhaul of Disney's board of directors and a restructuring of its business strategy. strengthened his demands.
Peltz argues that Disney needs to find a partner for its traditional TV channels, similar to its joint venture for its A&E network. Such a move would reduce Disney's exposure to its shrinking operations while giving employees “more control over their own destiny.”
Trian is seeking to have Peltz and former Disney chief financial officer Jay Laslo elected to the company's board of directors at its April 3 annual shareholder meeting. The company also wants to have a CEO succession process in place, among other things. Bob Iger begins reviewing the studio's operations and culture and develops a digital strategy for his ESPN sports properties at Disney.
The group Tryon founded owns about $3.5 billion in Disney stock.
“Disney has made strategic and operational mistakes over the past decade that have resulted in poor financial performance and lower absolute and relative stock returns, costing shareholders billions of dollars,” Tryon said in a statement. “I think I've given up and lost my way,” he said.
Disney shares rose 1.6% at Monday's New York close, giving the company a market value of about $209 billion. Representatives for Disney had no immediate comment.
Disney's board of directors is asking shareholders to vote on 12 nominees at next month's shareholder meeting and reject the nominees proposed by Tryon and those nominated by another investor, Blackwells Capital. There is.
In February, Disney's ESPN, Fox and Warner Bros. Discovery launched a sports-focused streaming service featuring major college and pro games typically only seen on traditional television. announced a partnership for the purpose of Disney also revealed it will invest $1.5 billion in Epic Games, which will allow the Fortnite maker to use Disney properties such as Star Wars, Marvel, and Avatar in its gaming world.
Mr. Peltz quickly rejected the plan, calling it “overzealous” and “chaotic” and saying it was not a “replacement for a well-thought-out corporate strategy.”
(Updated with recommendation for traditional channels in third paragraph.)
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