Disney World’s Magic Kingdom in Orlando, Florida.
Joe Raedle | Getty Images News | Getty Images
Activist investor Ancora on Tuesday urged Disney to put Nelson Peltz on its board, days after Peltz and his firm, Trian, launched a proxy fight with the entertainment giant.
“In an effort to avert an election contest following a yr of distractions and disappointing performance, we hope you join us in encouraging the Board to pursue a viable compromise with Trian Fund Management, L.P. and Nelson Peltz,” Ancora wrote within the letter. “Mr. Peltz (or a certified designee) would make a improbable addition to Disney’s Board.”
Ancora also suggested that much of Disney’s difficulties lately — including streaming losses and and several other box office flops — may very well be pinned on the corporate board.
“A level of shareholder-driven change is definitely warranted in Disney’s boardroom following an prolonged period of absentminded governance, ineffective succession planning, polarizing actions and sustained value destruction,” Ancora said Tuesday. “While it has been argued that challenges largely stem from the tenure of Bob Chapek, the Board was in the motive force’s seat before, during and after that point.”
Disney fired back at Trian last week, suggesting that the move was fueled by a private grudge against Disney CEO Bob Iger held by Peltz ally and former Marvel boss Ike Perlmutter. Trian oversees about $3 billion in Disney stock, however the overwhelming bulk of the shares is owned by Perlmutter, whom Disney laid off earlier this yr. Trian is searching for greater than two seats on Disney’s board, which is populated by directors seen as loyal to Iger.
Ancora’s announcement Tuesday didn’t disclose the dimensions of its stake in Disney. Ancora owned greater than 60,000 shares of Disney as of September, according to FactSet. That will be equivalent to an roughly $6 million stake as of Tuesday.
Disney had a market cap of about $160 billion as of Tuesday, its shares closing down by greater than 1%. The stock is up greater than 4% this yr, underperforming the broader S&P 500.
Disney didn’t immediately respond to CNBC’s request for comment.
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