Disney to win proxy battle against Peltz: Reuters

April 3, 2024 at 9:49 AM

According to a report from Reuters, Walt Disney (DIS) is set to win its battle against activist investor Nelson Peltz over board seats after its annual shareholder meeting takes place on Wednesday. However, in that same report, the source of the information claimed it was possible that some shareholders could change their votes.

Yahoo Finance Entertainment Reporter Alexandra Canal joins Morning Brief to break down the report from Reuters, potential outcomes, and what it could mean for Disney and Peltz moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

BRAD SMITH: Switching gears everyone. Disney will reportedly come out on top in its boardroom battle against activist investor, Nelson Peltz. After securing enough shareholder votes according to Reuters, Yahoo Finance's Alexandra Canal here with the breakdown on all things, House of Mouse.

ALEXANDRA CANAL: Yeah. Brad, so we're in the final hours of this proxy battle. You said, it looks like Disney has come out on top but even Reuters said it's very possible that shareholders could switch their vote at the last minute. So nothing is final, nothing is determined until we hear from Disney at that shareholder meeting later this afternoon.

And although the company has a fair amount of individual retail investors, roughly between 30% to 40%. It's really going to come down to those institutional shareholders, they have the most pull and they're going to have the most impact on this vote. Vanguard, BlackRock, and State Street, these are the three largest shareholders of Disney.

According to the Wall Street Journal, BlackRock has voted in favor of Disney's current board. Reuters saying that Vanguard has done the same the position of State Street is still unknown. But that's really crucial considering how influential these shareholders have and their influence on the board. Now, I will say even if Disney does win this battle, they still have a lot of work to do in order to win the war.

The spotlight, it's going to be even more heavily placed on this board. I don't think Nelson Peltz is going away anytime soon. I mean, this proxy fight, it caused millions of dollars. Disney reportedly spent 40 million on the fight, Nelson Peltz $25 million, Blackwells Capital another activist investor, $6 million.

The videos, the press releases, the letters, I mean this-- even people that aren't shareholders of Disney, know this is happening, know this is going on. Laura Martin from Needham she had a note out, saying that shareholders have benefited from this proxy fight.

She believes Tryon and Blackwells have added urgency to Disney's turnaround plan and she added quote since we believe the vote will be close, Disney will remain under pressure to drive shareholder upside going forward.

And if you take a look at the stock price, we've definitely outperformed the stock is up more than 30% since the start of the year was the best Dow performer in the first quarter. And a lot of that had to do with the announcements that Disney made as they were pressured by these activists.

SEANA SMITH: Yeah. And so that brings me to my question, is there enough-- or what's the feeling out there about what would be enough to placate Nelson Peltz? Because you said, Iger has taken some aggressive action, he announced a joint venture with Warner Brothers Discovery and with Fox, also the investment in Epic Games. Is that-- do we know if that is at all just in terms of what Nelson Peltz wants to see?

ALEXANDRA CANAL: Yeah. And it's interesting because Nelson Peltz launched this battle before, remember about a year ago. And then he backed off when Disney did have several restructurings, they had layoffs, they reinstated the dividend, but it doesn't seem like he's willing to let go of this fight at the current moment.

It seems like succession is a really big thing that Nelson Peltz and his backers have really hung their hat on when we think about this proxy fight. That of course coming after the disaster that was Bob Chapek. Nelson Peltz really thinking that the board didn't do enough to push back against Iger. Didn't do enough to ensure that this was the right candidate for the job and that's why he wants a seat at the board.

I would not be surprised if he continues his activist campaign, if he continues this fight, Disney is certainly going to have to listen to what he has to say because he is this big and powerful voice. But it'll be interesting to see moving forward how he handles this, if he does in fact, lose that board seat. So they-- we will be and you especially, will be tracking very closely today. All right, Ali. Thanks so much.

SEANA SMITH: Thank you.

Yahoo Finance
Stock market today: US stocks set to snap 5-month win streak with Fed, Amazon in focus
Investors marked time ahead of the Fed's rate decision, with earnings from Amazon on deck to test prospects for a Big Tech-fueled bump.
4m ago
CBS News
Kenya leader vows to help "victims of climate change" as floods kill 170
President William Ruto has promised help for Kenyans as unusually heavy monsoon rains burst a dam and unleash deadly floods and mudslides.
6m ago
Yahoo Finance
Chegg stock crashes as free AI tools send online education company 'spiraling'
Chegg's growth metrics have declined since the launch of free AI learning tools, weighing heavily on the stock.
10m ago
AFP
Top French university loses funding over pro-Palestinian protests
The Paris region authority sparked controversy Tuesday by temporarily suspending funding for Sciences Po, one of the country's most prestigious universities, after it was rocked by tense pro-Palestinian demonstrations.In an echo of tense demonstrations rocking many top US universities, students at Sciences Po have staged a number of protests, with some students furious over the Israel-Hamas war and ensuing humanitarian crisis in the besieged Palestinian territory of Gaza.
12m ago
AFP
Eurozone stocks sag on strong euro as region exits recession
Eurozone equities sagged Tuesday, weighed down by the strong euro as investors digested bright economic news, while London hit another record peak on earnings-driven optimism.London meanwhile zoomed to yet another record peak at 8,199.95 points, with HSBC soaring more than four percent on a bumper stock buyback despite sliding first-quarter profits and the exit of its chief executive.
14m ago
Associated Press
The US is building a pier off Gaza to bring in humanitarian aid. Here's how it would work
The U.S. and allies are scrambling to pull together a complex system that will move tons of humanitarian aid into Gaza by sea. Nearly two months after President Joe Biden gave the order, U.S. Army and Navy troops are assembling a large floating platform several miles off the Gaza coast that will be the launching pad for deliveries. The relief is desperately needed, with the U.N. saying people in Gaza are on the brink of famine.
14m ago
Reuters
World Court rejects emergency measures over German arms exports to Israel
Judges at the International Court of Justice on Tuesday ruled against issuing emergency orders to stop German arms exports to Israel, adding that they remained deeply concerned about conditions in Gaza. Nicaragua had asked the ICJ, also known as the World Court, to order Germany to halt military arms exports to Israel and to resume its funding of the U.N. Palestinian refugee agency UNRWA, saying there was a serious risk of genocide in Gaza.
14m ago
AFP
Blinken presses for Gaza aid on Jordan visit
US Secretary of State Antony Blinken on Tuesday called for the redoubling of efforts to bring aid into Gaza as he held talks in Jordan on coordination.Blinken, on his latest tour of the region since the Gaza war erupted in October, observed Jordan's efforts to bring in food and supplies and praised the "extraordinary work" led by the United Nations.
18m ago
AFP
Changpeng Zhao, the 'normal guy' who conquered crypto
During his time at the helm of the world's biggest cryptocurrency firm, former Binance boss Changpeng Zhao, who will be sentenced in the United States later Tuesday for money laundering, perfected the humble executive look.He pleaded guilty to violating US anti-money laundering laws and agreed to step down as Binance CEO, the authorities announcing later that the firm would pay a $4.3 billion settlement.
20m ago
AFP
European satellite giant SES to buy US rival Intelsat
European satellite group SES will acquire US rival Intelsat for $3.1 billion, the companies said Tuesday, seeking to compete in a race for space-based internet service led by Elon Musk's Starlink.The sector faces growing competition for space-based internet service, which satellite operator Eutelsat says could be worth $16 billion by 2030.
20m ago
Associated Press
5 takeaways from the global negotiations on a treaty to end plastic pollution
The world’s nations finished a round of negotiations early Tuesday on a treaty to end plastic pollution and made more progress than they have in three prior meetings. Coming into Ottawa, many feared the effort would stall to craft the first legally binding treaty on plastics pollution, including in the oceans. It was the fourth Intergovernmental Negotiating Committee on Plastic Pollution session.
22m ago
Reuters
Lebanese students stage rare university protest against Israel
Hundreds of students gathered at university campuses in Lebanon on Tuesday to protest against Israel, the country's first coordinated university protests over Gaza, which participants said were inspired by sit-ins in the United States. Rayyan Kilani, 21, who is graduating this semester from the 150-year-old American University of Beirut (AUB), said students had decided it was worth risking their degrees to show support for the Palestinian cause.
27m ago
AFP
Activists occupy Columbia building as US campus protests flare
Demonstrators at Columbia University barricaded themselves inside a campus building early Tuesday, escalating a standoff with school officials as pro-Palestinian protests upend campuses across the United States.The demonstrators vowed to remain at the hall until their demands are met, including that Columbia divest all financial holdings linked to Israel.
28m ago
Reuters
Trump does not rule out building detention camps for mass deportations
Republican presidential candidate Donald Trump does not rule out building detention camps on U.S. soil for migrants in the country illegally if he wins a second White House term, he told Time magazine in an interview published on Tuesday. Trump was asked whether he would build new detention camps as part of his campaign pledge to carry out the biggest deportation of migrants in the country illegally. "I would not rule out anything," Trump said.
34m ago
AFP
Ukraine dismantles Soviet monument to friendship with Russia
Kyiv authorities on Tuesday began taking down a Soviet-era monument celebrating friendship with Russia -- more than two years into an invasion by Moscow which has cost tens of thousands of lives.Ukraine, which gained independence from the Soviet Union in 1991, has for years been taking down Soviet-era monuments and has re-named many towns and cities to restore their pre-Soviet names.
43m ago
Associated Press
Europe's economy shows signs of life with 0.3% growth in 1st quarter as inflation, energy woes ease
Europe's economy perked up slightly at the start of the year, recording 0.3% growth in the January-March quarter compared to the last three months of 2023 as the inflation burden on consumers eased and the stagnating German economy, the continent's biggest, started to show modest signs of life. The 20-country eurozone recorded its strongest performance since the third quarter of 2022 and improved on shrinkage of 0.1% in each of the last two quarters of 2023, according to official figures released Tuesday by the European Union's statistical agency Eurostat. The economy had been held back by high inflation that has sapped consumer purchasing power, and by an energy price spike related to Russia cutting off most supplies of natural gas.
46m ago
CNN
In pictures: A lookback at student protest movements in the US
Students have established encampments and occupied campus buildings to protest Israel’s war in Gaza, roiling college campuses across America. Many of them say they’re inspired by the long – if often turbulent – history of university activism in the United States.
49m ago
NBC News
Columbia University protest occupation and 4 law enforcement killed in North Carolina: Morning Rundown
Pro-Palestinian demonstrators occupy a building at Columbia University as a campus protest escalates.
53m ago
Reuters
Corning forecasts second-quarter core sales above estimates on steady carrier spending
After a period of sluggish spending by wireless carriers on its fiber optic cables, Corning is seeing a recovery as telecom clients upgrade their infrastructure along with more uses for the company's products in data centers, which power artificial intelligence applications. "We're seeing encouraging signs of improving market conditions," said Corning CEO Wendell Weeks.
54m ago
CNN
Michigan AG executes search warrants on Google and X in ongoing 2020 fake electors probe
Google and X, formerly Twitter, recently provided hundreds of files to Michigan prosecutors for their 2020 election subversion probe, complying with search warrants that investigators obtained after CNN revealed secret social media accounts belonging to pro-Trump lawyer Kenneth Chesebro, who played a major role in the fake electors plot.
58m ago

Video Transcript

Latest Stories