Disney wins its long boardroom battle, as shareholders seek a happy ending

The ride of a lifetime… has been bumpy lately. Yesterday, Disney finally fended off hedge fund Trian’s attempt to take over two seats on Mickey’s board. Shareholders voted for Disney’s board picks, ending an aggressive “proxy fight” (when shareholders force a vote for control). It’s the culmination of a battle between Trian founding partner Nelson Peltz and Disney CEO Bob Iger, who’ve been trading barbs for over a year (Trian owns 2% of Disney shares). Peltz has blamed Iger’s management for Disney’s failure to return to its record high 2021 stock price.

• Spendy: Disney vs. Trian is thought to have been the most expensive proxy fight ever. To sway shareholders, Peltz shelled out $25M and Disney spent $40M (it even enlisted Donald Duck’s uncle for PR).

• “Succession” vibes: As an activist investor, Peltz tries to influence changes by leveraging his stake in a company (in this case Disney). He’d previously led (and lost) a proxy fight against Procter & Gamble.

All it takes is (losing) faith and trust… and a little proxy dust. Peltz has had a long list of grievances with Disney and Iger. In a 133-page white paper, Peltz called for a clear succession plan after Iger, a path to streaming profitability, and a shake-up of Disney’s creative teams. Meanwhile, Iger’s been trying to restore the magic his own way. And it seems to be working:

• Beauty and the beat: Last quarter Disney beat profit expectations and lifted its guidance after narrowing streaming losses.

• Iger announced plans to make streaming profitable by September, launch an ESPN streamer next year, invest $1.5B in “Fortnite” maker Epic Games, and release a “Moana” sequel.