The proxy battle between Walt Disney (NYSE:DIS) CEO Bob Iger and Trian Partners’ Nelson Peltz is once the election for Disney directors is over.
says Iger has the votes to win, while Peltz won the late endorsement of Tesla (NASDAQ:TSLA) CEO .
DIS stock opened today at $122.23 per share, a market capitalization of $225 billion. Shares are up 35% in 2024 as investors look to get in on the action.
What’s at Stake
At stake is the direction of Disney’s turnaround. Shares still sell for 10% less than they did two years ago. The company’s broadcast and cable businesses are shrinking, and it has yet to make a profit in streaming.
For , Disney brought in 12% less revenue from “linear networks” than in 2022. The streaming business lost $138 million. A loss was also reported in the ESPN sports division.
Trends are favorable, however. Streaming revenue is picking up, and losses are declining. But Peltz, the company’s largest individual shareholder, .
Iger now seems likely to win, having won over big institutional investors Vanguard, T. Rowe Price, and Blackrock (NYSE:BLK). Iger calls Peltz’s campaign “a distraction.”
Even if Iger wins, he still needs to execute his current turnaround plan and find a successor. , who runs Disney Entertainment, is considered the front-runner.
But Iger has already gotten his succession wrong. He left for Disney Parks chief Bob Chapek , then returned , ousting Chapek and his top lieutenants. Iger’s current contract runs through 2026.
Since his return, Iger has put ESPN’s name on the Penn National (NASDAQ:PENN) in exchange for an equity stake. He also , and conducted .
DIS Stock: What Happens Next?
Expect Disney’s stock price to fall right after the meeting as the proxy war’s losers lick their wounds.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
