Activist Investor Nominates Nelson Peltz and Jay Rasulo for Disney Board Seats
Trian Fund Management is escalating its battle with Disney over the company's future, by nominating Nelson Peltz and Jay Rasulo for seats on Disney's board. This move comes after Trian's previous bid for board seats was rejected. Disney has struggled with flops, declining viewership, and losses in its streaming business. Peltz believes that a change in the board is necessary for a turnaround.
Activist Investor Trian Fund Management Nominates Nelson Peltz and Jay Rasulo for Disney Board
Trian Fund Management, a powerful activist investor, announced that it will nominate its founder, Nelson Peltz, and former Disney CFO Jay Rasulo for seats on Disney's board.
This comes after Trian launched a bid for board seats in November, which Disney rejected, reigniting their ongoing battle.
Disney has faced significant challenges in the past year, including flops, declining viewership, and losses in its streaming business. Peltz is seeking a turnaround for the company.
Disney to Review Trian's Proposal
While Disney has previously pushed back against Trian and its nominations, the company has stated that it will review the proposal.
Disney emphasized that it has an experienced and highly qualified board, but will consider Trian's recommendations as part of its governance process.
Trian believes that the current board is too closely connected to the CEO and disconnected from shareholders' interests.
Disney's Struggles and Transition to Streaming
Disney has faced challenges with declining linear TV revenues, box office misses, and the need to cut costs.
Their streaming platform, Disney+, has been experiencing financial losses as the company transitions to the age of streaming.
While Disney expects its streaming segment to be profitable by the end of next year, it lost subscribers in the US and Canada last quarter. The company may also tighten restrictions on password-sharing among users.
