Ancora, an activist investor, has publicly advocated for the inclusion of Nelson Peltz on Disney’s board, aligning with Peltz’s recent proxy battle against the entertainment giant through his firm, Trian. The call for Peltz’s board membership comes amidst rising tensions and a push for change within Disney’s leadership. In a detailed letter, Ancora emphasized the necessity of finding a compromise to circumvent a potentially contentious election contest, urging the Disney board to engage in constructive dialogue with Trian Fund Management, L.P. and Nelson Peltz.
The letter from Ancora contends that Peltz, or a qualified designee, could bring valuable insights and expertise to Disney’s board, serving as a catalyst for positive change. Ancora’s recommendation is rooted in the belief that a degree of shareholder-driven change is essential in Disney’s boardroom. The investor cited concerns over what they perceive as a prolonged period of absentminded governance, ineffective succession planning, polarizing actions, and sustained value destruction.
Furthermore, Ancora posited that many of Disney’s recent challenges, including streaming losses and box office disappointments, can be traced back to governance issues within the company. While acknowledging the argument that some challenges may be linked to the tenure of Disney CEO Bob Chapek, Ancora stressed that the board was instrumental before, during, and after that period.
The public statement from Ancora adds to the ongoing saga involving Trian’s proxy fight and Disney’s response. Disney, in a recent retort, suggested that personal motivations, particularly a perceived grudge held by Peltz ally Ike Perlmutter against Disney CEO Bob Iger, were influencing Trian’s actions. Trian, managing approximately $3 billion in Disney stock, seeks more than two seats on Disney’s board, challenging directors seen as loyal to Iger.
Despite the heightened scrutiny and governance challenges, Ancora did not disclose the size of its stake in Disney. As of September, Ancora owned over 60,000 shares, valued at approximately $6 million. Disney, with a market cap of about $160 billion, has seen its shares underperform the broader S&P 500 this year. The stock closed down by more than 1% following Ancora’s announcement, but it is up more than 4% for the year. As Ancora’s call reverberates through the market, Disney has yet to respond to CNBC’s request for comment, leaving the situation poised for further developments.