Activist investor Nelson Peltz made headlines recently when it was revealed that he had sold his entire stake in Disney. According to a source familiar with the matter, Peltz sold all of his Disney stock at around $120 per share, resulting in a profit of approximately $1 billion. This move comes as the stock’s current trading price hovers around $100 per share.
Peltz’s decision to sell his stake in Disney comes just weeks after his investment firm, Trian Partners, lost a proxy battle at the company. In early April, shareholders voted to reelect the company’s full slate of board nominees, instead of electing Peltz and former Disney CFO Jay Rasulo to the board. This outcome was a setback for Peltz, who had been critical of Disney’s governance practices.
One of the key issues that Peltz had raised was Disney’s streaming strategy. He believed that the company needed to reassess its approach in this area to remain competitive in an increasingly crowded market. Additionally, Peltz had also expressed concerns about a failed succession plan for CEO Bob Iger. These concerns prompted him to increase his stake in Disney to approximately 30 million shares in October last year, and reignite his proxy campaign.
Despite the setback at the shareholder vote, Trian Partners expressed pride in the impact they had made in refocusing Disney on value creation and good governance. However, it seems that Peltz ultimately decided to exit his position in the company, perhaps due to a lack of confidence in the direction Disney was heading.
It is worth noting that Disney’s stock has performed relatively well this year, with a gain of around 11%. This performance has slightly outpaced the broader market, as measured by the S&P 500 index. However, Peltz’s decision to sell his stake indicates that he may have a different outlook on the company’s future prospects.
As of now, Disney has not yet provided any comment on Peltz’s exit. It remains to be seen how this development will impact the company and its shareholders in the long run. Nonetheless, Peltz’s decision to sell his stake in Disney serves as a reminder of the influence that activist investors can have on corporate governance and strategic decision-making.
