Activist investor Nelson Pelt’s Trian Fund Management has accumulated a stake worth more than $2.5 billion and is planning a fresh push for board seats at Disney, according to sources familiar with the matter.
The news comes as Pelt’s Trian Fund Management reportedly seeks to exert influence on the board of Disney. With an accumulated stake valued at over $2.5 billion, the activist investor is planning to campaign for board seats, sources cited by the Wall Street Journal revealed.
Disney’s board has long been the target of activist investors seeking to bring about change within the company. According to reports, Pelt has held talks with other investors who are interested in supporting his efforts to secure board seats.
It remains to be seen how Disney’s current board will respond to Pelt’s campaign. The conglomerate’s board consists of esteemed names in the business world, including CEO Bob Chapek and Executive Chairman Robert Iger, who has been instrumental in the company’s success over the years.
However, Pelt’s track record as an activist investor is hard to ignore. With a history of successful campaigns at other companies such as Procter & Gamble and General Electric, Pelt has proven his ability to effect change within corporate boards.
The news of Trian Fund Management’s stake in Disney comes as the company continues to navigate challenges brought on by the COVID-19 pandemic. Disney’s theme parks and resorts have been significantly impacted by lockdowns and travel restrictions, leading to financial uncertainty for the company.
While Disney has taken measures to adapt to the changing business landscape, including focusing on streaming services like Disney+, activist investors like Pelt may see further opportunities for growth or improvement within the company.
As Pelt and Trian Fund Management prepare to make their case for board representation, all eyes will be on Disney to see how it responds to this latest challenge. The outcome could potentially shape the future direction of the company and its board composition.
In Bengaluru, Urvi Dugar, reporting for Reuters.
Editing by Krishna Chandra Eluri.
Credit: The Star : Tech Feed
