Disney Makes Progress in Fight for Board Seats Against Activist Investors

In the race for board seats and the future of the international entertainment behemoth, Walt Disney (DIS.N) opened a new tab that seemed to be winning out over activist investors. Before the company's annual meeting on Wednesday, 3rd April 2024, more than half of all shares were voted.

T. Rowe, which has about 11.7 million Disney shares, or 0.64%, supported the business. He also declared that he had cast votes to re-elect Michael Froman and Maria Elena Lagomasino, the two Disney directors whom Nelson Peltz's Trian Fund Management is challenging.

Disney also secured the support of its second-largest stakeholder and an influential investor, BlackRock. However, BlackRock declined to comment on this matter. Although this may give Disney an edge, people reviewing the votes believe things may change after the final voting on Tuesday.

It is because people who have already voted still have the chance to change their minds and decisions. Investors Trian and Blackwells Capital and Disney executives in high places made their last effort to persuade voters to support their board candidates.

The battle and the stakes are very high. Disney wants all 12 current directors to be re-elected. However, Trian and Blackwells Capital want them to win the votes. This voting is crucial as Disney is trying to reimage its branding, make its OTT platform profitable, and search for partners to build the future of ESPN.

Even though Disney's stock prices saw a jump of 34% in 2024, they are still close to 40%, down from the record highest in March 2021. Trian, the billionaire, is looking for two seats in Disney - one for himself and another for Jay Rasulo, the former Disney Chief Financial Officer.

According to Trian, two directors - Lagomasino and Froman, lack relevant skills. Before the voting, he even shared materials with the investors on Monday, 1st April 2024. On the other hand, Blackwells Capital is telling investors to vote for anyone other than Trian. They are looking for three seats in Disney.