Activist Nelson Peltz lifts stake in Disney as shares near decade low
Activist investor Nelson Peltz has reportedly raised his fund’s stake in Disney and is eyeing multiple seats on the board for himself and his underlings.
Trian Fund Managament, founded by billionaire Peltz in 2005, has increased its stake in the Mickey Mouse creator to more than $2.5bn (£2bn), according to a Wall Street Journal report that emerged last night.
Trian now owns over 30m shares, a dramatic jump from the end of the second quarter when it held about 6.4m shares.
According to sources, the fund believes Disney shares are undervalued and the company needs a more focused and accountable board.
But if Disney denies the extra board seats, Trian may nominate directors at the annual meeting next spring.
Shares in the struggling media and entertainment firm are up over 1.5 per cent in pre-market trading. However, they are nearing a decade low, having recently plunged from north of $113 to $80.
Disney snubbed Peltz as a company director at the start of this year, nominating Nike’s Mark Parker as chairman.
Following this, Peltz withdrew his request for a board seat in February after a cost-cutting plan briefly boosted the stock.
It has been a tumultuous period for Disney as it battles falling subscribers to its Disney+ streaming service and has dealt with swift leadership changes.
Last November, Bob Iger made a shock comeback as boss, taking over from Bob Chapek who had led Disney since early 2020. This summer, Iger extended his contract by two years after scrapping succession plans.
Disney and Trian did not immediately respond to City PM‘s request for comment.