Following the release of Disney’s first quarter earnings report last week, Nelson Peltz’s Trian Group has sent a letter to fellow Disney shareholders discussing the report and their continued proxy battle.
What’s Happening:
- In the letter, Trian states that “Disney has lost money for its shareholders over a long period of time.”
- The letter goes on to state that Disney is trying to distract shareholders with a “fanciful tale,” claiming it has “turned the corner and entered a new era.”
- Trian believes that Disney announced a slew of promises and ideas, hoping that shareholders would just believe all was well and improving.
- In their effort to get greater representation on the Disney Board, they ask shareholders to vote for their nominees, Peltz himself and former Disney executive, Jay Rasulo.
- Peltz also appeared for an interview on CNBC, where he called last week’s earnings-timed announcements “spaghetti against the wall” (an image depicted in the above artwork that was included in the letter) while also guaranteeing victory in the proxy fight and criticizing Bob Iger’s “lack of progress” since returning as CEO.
- In response, Disney sent their own letter to shareholders, stating that Disney’s current board has “the range of talent, skill sets, experiences, and professional backgrounds that are particularly relevant to the company’s business and strategic objectives.”
- The letter states that the company is better off with Iger at the helm, and that the company’s strategic plan is “already delivering results.”
- You can read Trian Group’s full letter to shareholders here.