Hedge fund billionaire Nelson Peltz sold his entire stake in Disney after his attempt to restructure Disney's board of directors was soundly defeated, according to reports.
The father of actor Nicola Peltz-Beckham, married to Brooklyn Beckham, reportedly sold his shares for “about $120 per share,” to make about $1 billion from the sale, CNBC reported.
The stock price indicates that he made the sale after an April shareholder meeting in which he failed to take control of the company's board.
Hedgefund Trian Partners, funded by Peltz, nominated Peltz himself to win a board seat. However, his bid was soundly defeated by other shareholders at the April 3 annual meeting.
The vote came after complaints from Peltz that the board had not done its job regarding CEO succession planning by failing to vet former parks chief Bob Chapek, who was current CEO Bob Iger's favorite for happen in 2020.
Iger returned to the CEO role in November 2022 after Chapek was removed.
After last month's vote, Peltz vowed to continue his criticism if the board did not comply.
“I hope this isn't a repeat of last year, when we pulled out, gave management a chance and the stock fell,” he told CNBC.
He added: “If we stay [invested in Disney] or not, we don't make those types of announcements.”
Peltz's Trian Partners wanted to remove two directors, Maria Elena Lagomasino and Michael Froman, citing sustained underperformance of the stock according to CNBC.
However, Peltz reportedly lost to Lagomasino by a 2-to-1 margin, and the entire slate of candidates for the company's board of directors was re-elected.
Peltz, Brooklyn Beckham's father-in-law, is considered an activist investor, meaning he invests in companies considered undervalued and then lobbies for change within them.
Bob Iger has led the Walt Disney Company for a 17-year period as CEO, leading the multi-billion dollar kingdom through a pandemic, scandals, the rise of online streaming and, most recently, his own successor.
Bob Chapek took over from Iger in 2020, who quickly returned less than three years later after a series of film flops and mismanagement that cost the organization millions of dollars.
Iger plans to step down (hopefully more permanently) in the coming years.
According to Vanity Fair, the entertainment giant has narrowed the list of Iger's successors to four candidates, with plans to hand over power in 2026 and, crucially, avoid a repeat of the 2022 disaster in which Iger returned to pick up the slack. pieces in just three years. years.
Those chosen as candidates for the CEO position are Dana Walden, Alan Bergman, Jimmy Pitaro and Josh D'Amaro.
