Activist investor and hedge fund billionaire Nelson Peltz has announced he is ending his proxy fight with Disney. A proxy fight is a contentious process in which shareholders, such as Peltz, attempt to sway a corporation’s direction by voting for new board members or proposals.
Peltz’s fund Trian owns approximately 9.4 million shares of Disney’s stock, worth about $900 million.
Peltz stated that Disney has agreed to take all the actions Peltz wanted.
Iger Makes Changes
During the recent earning call, Iger announced that the company will:
- Lay off 7,000 workers in an attempt to reduce $5.5 billion in costs.
- Reorganize into three core business segments: Disney Entertainment; ESPN; and Disney Parks, Experiences, and Products.
- Likely reinstate the company’s dividend by the end of the calendar year.
- Create a dedicated succession planning committee.
Glad that the Disney Proxy War is over?