BlackRock and T. Rowe are reportedly backing the entertainment company, which could give it an edge heading into the shareholder meeting.
This is one of the most high-profile governance battles in recent years. But reports this week suggest that the board of Disney, the world's most famous entertainment company, may have a lead over an activist investor seeking a board seat.
Trian Partners, the hedge fund that owns $3.5 billion in Disney stock, in March appointed its own founders Nelson Peltz and Jay Laslo to the filmmaker and streaming platform's board of directors, replacing longtime He called for the dismissal of the unlisted company. -Executives Michael Froman and Maria Elena Lagomasino.
But reports after the Easter weekend suggest Disney leaders may be winning, with support from BlackRock, the world's largest fund manager, and broker-dealer T. Rowe. .
The news of the company being removed from a shareholder vote ahead of Wednesday's shareholder meeting highlights how heated the issue is for Disney, even though there are still many votes left to be counted.
Bob Iger, who returned to Disney's CEO role in November 2022 following the retirement of Bob Chapek, called the proxy fight a “distraction” at a press conference in early March.
Iger was brought back to Disney after the company became embroiled in a political battle with Florida Governor Ron DeSantis over LGBTQ rights. Chapek has publicly opposed the “Don't Say Gay” policy introduced in Florida in 2022, and the governor responded by passing legislation to remove special administrative status for entertainment companies.
political discord
Since then, Mr. Iger has been fighting to negotiate political fallout and rebuild the company's creative talent pool to help streaming services compete in a crowded market.
In a letter to shareholders last month, Tryon said Disney stock had “underperformed” its peers over the past five years. The letter said the company had “lost its way.”
He also accused Disney of using “inflammatory rhetoric.”
“We love Disney,” the letter reads. “We are a large investor and our sole purpose is to help the company delight consumers and deliver strong returns for shareholders.”
Social media comments about Tryon's intervention often take on an angry tone, with many referring to Nelson Peltz, who recently expressed support for new President Donald Trump, and confusing politics with investment concerns. It mentions what you are doing.
Others are just as sharp, but more considered. Nell Minow, vice chairman of shareholder advisory firm ValueEdge, posted on X that she voted for the “Disney candidate.”
Reuters reports that “hundreds” of people on both sides are calling investors (Disney has a higher proportion of individual investors) to try to sway their votes.
Today is going to be a long one for the Disney board. But the company's future depends on it.
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