Nelson Peltz is planning to make another bid for a seat on the Walt Disney Company's (DIS) board after the company's (DIS) stock price continued to tumble.
The activist investor's Trian Fund Management is expected to ask for several board seats, including one for Peltz, according to people familiar with the matter. Trian Fund Management is currently one of Disney's largest investors, holding more than $2.5 billion worth of the company's stock.
If Disney declines, Trian could nominate directors, and those nominations would be put to a vote at Disney's annual shareholder meeting next spring. According to Disney's proxy materials, the window for shareholder nominations runs from Dec. 5 to Jan. 4.
Nelson Peltz is planning to make another bid for a seat on the Walt Disney Company's (DIS) board after the company's (DIS) stock price continued to tumble.
The activist investor's Trian Fund Management is expected to ask for several board seats, including one for Peltz, according to people familiar with the matter. Trian Fund Management is currently one of Disney's largest investors, holding more than $2.5 billion worth of the company's stock.
If Disney declines, Trian could nominate directors, and those nominations would be put to a vote at Disney's annual shareholder meeting next spring. According to Disney's proxy materials, the window for shareholder nominations runs from Dec. 5 to Jan. 4.
Peltz launched a campaign for a seat on Disney's board earlier this year after the company privately rejected his request to become a director. The dispute didn't last long, though, and Peltz withdrew his nomination in February after Disney unveiled a sweeping restructuring and cost-cutting plan that briefly boosted the company's stock price.
Since then, Disney shares have fallen from more than $113 to around $80, their lowest level in a decade. In early 2021, when the number of registered users for Disney+, the company's flagship streaming service, was growing at breakneck speed for several quarters, the company's stock was trading around $200.
Disney has been grappling with multiple headwinds recently, including a Hollywood strike that has stalled TV and movie production, a high-profile battle with large cable operator Charter Communications (CHTR) over fees, and the prospect of sustained losses in its own TV and streaming businesses.
Trian believes Disney's current stock price is significantly undervalued and the company needs a more focused, shareholder-aligned and accountable board, according to people familiar with the matter.
In recent months, Trian has increased its stake in Disney to more than 30 million shares, up from about 6.4 million shares at the end of the second quarter.