Nelson Peltz sells entire Disney stake weeks after losing proxy battle
Is Nelson Peltz's Disney Exit a $1B Surrender?
Activist investor Nelson Peltz has sold his entire stake in Disney, just weeks after losing a proxy battle where shareholders reelected Disney's board nominees. Peltz, through Trian Partners, sold his shares for about $120 each, totaling around $1 billion. This follows his unsuccessful attempt to join Disney's board and critique of its governance and streaming strategy. Despite the sale, Disney shares have risen about 11% this year.
How many shares did Nelson Peltz own in Disney before he sold his entire stake, and what was the total value of his position at the time of sale?
Nelson Peltz owned approximately 30 million shares of Disney before he sold his entire stake. At the time of the sale, he sold all of his Disney stock at roughly $120 per share. Therefore, the total value of his position at the time of sale was about $3.6 billion (30 million shares multiplied by $120 per share). Peltz made a profit of about $1 billion on this transaction, indicating that his initial investment was significantly lower than the selling price.
What specific reasons did Nelson Peltz cite for his dissatisfaction with Disney's governance prior to selling his stake?
Prior to selling his stake, Nelson Peltz expressed dissatisfaction with Disney's governance, particularly criticizing the company's streaming strategy and what he perceived as a failed succession plan for CEO Bob Iger45. His concerns centered around the company's direction and management under Iger's leadership, which he felt were not adequately addressing the challenges or capitalizing on opportunities, especially in the context of Disney's digital and streaming ventures.