Activist investor Peltz raises stake in Disney and seeks board positions

Activist investor Nelson Peltz, the founder of Trian Partners, is once again seeking board representation with Disney after upping his stake in the media giant in news first reported by the Wall Street Journal.

Peltz has over the last couple of months reportedly increased his stake in Disney to a valuation of over US$2.5 billion, making him one of the company’s biggest shareholders, and is looking to acquire board seats, including one for himself.

The move comes after Peltz and Disney made peace last February following a drive by the billionaire investor to gain board seats and influence the company’s strategy.

Peltz pulled back after Disney CEO Bob Iger reorganised the company into three core, collaborative business segments – Disney Entertainment, ESPN, and Disney Parks, Experiences and Products – giving the leaders of each business segment full operational control and financial responsibility for creative development, marketing, technology, sales, and distribution.

The company also announced a cost-cutting drive including plans to cut 7,000 jobs.

Disney had previously foregrounded its strong opposition to Peltz taking a seat on the board, arguing that Train Group “had not, actually presented a single strategic idea for Disney” and that Peltz himself had exhibited a “lack of media or technology industry experience coupled with his repeated focus in his presentation on successful approaches from businesses like Heinz, Procter & Gamble and DuPont which have little in common with Disney”.

Disney’s share price has since tumbled by 25% however. The company has cut investment in programming and is exploring the future of its loss-making flagship streamer Disney+ in a number of markets as it seeks to achieve profitability. It has also raised prices and introduced an ad-supported tier.