With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today.
Bob Iger, Disney Fend Off Activist Shareholders In Decisive Vote
Bob Iger, chief executive officer of the Walt Disney Co., speaks during an Economic Club of New York event in Manhattan in 2019.
(
Drew Angerer
/
Getty Images
)
Topline:
Disney CEO Bob Iger succeeded in his fight with shareholder activist Nelson Peltz and another investment group, Blackwells Capital, over the makeup of the company’s board of directors and its strategic direction.
Why it matters: Disney is the most successful and highly valued of the traditional entertainment studios in Hollywood. Its long-time winning formula of leveraging its deep wellspring of intellectual property — particularly in superhero movies and animation — has helped it generate billions at the theatrical box office and in its theme parks. But as some of those creative efforts have sputtered (The Marvels was a significant dud) and Iger, 73, has yet to name a successor, it created an opening for investors to acquire significant equity stakes and agitate for change.
What Disney management wins: Although the vote total is not yet public, CNBC has reported that at least one board member whose seat was being contested won by a 2-to-1 margin. The vote of confidence means that Iger, his board and senior leadership can pursue their strategy to grow revenue, profitability — and the stock price — via such initiatives as the proposed sports streaming joint venture with Fox and Warner Bros. Discovery and a renewed focus on its upcoming slate of films including Moana 2.
Sponsored message
An unprecedented fight: Proxy battles between investors and management rarely enter the broader culture. But this being Disney — and Peltz being a well-known, colorful figure in the financial world — the contest took on the air of a political campaign. Each side courted high-profile constituencies, with Iger securing endorsements from Walt and Roy Disney’s heirs, former CEO Michael Eisner and Laurene Powell Jobs, the widow of Steve Jobs. Disney also ran ads on podcasts and on LinkedIn, and Peltz took out ads on the back page of national newspapers.
But as the law firm Kirkland & Ellis concluded after studying last year’s proxy season, “the more things change, the more they stay the same,” meaning that a company that is well-prepared to fend off an activist is most likely to succeed.
— The Ankler will have the full story on Thursday.
This story is published in partnership with The Ankler, a paid subscription publication about the entertainment industry.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Senior Vice President News, Editor in Chief
