Zhitong Finance APP was informed that on Thursday, after Disney (DIS.US) unveiled a large-scale restructuring plan to cut costs and lay off 7,000 people, activist investor Nelson Peltz announced his agency with the entertainment giant. The power struggle is over.
The head of Trian Fund Management said: “Right now Disney plans to do everything we want them to do. Our best wishes to Bob, the management team and the board. We will be working closely. Stay tuned and we’ll have your back. The proxy battle is over.”
Trian Fund Management entered into a proxy fight with Disney in early January, pushing Peltz for a seat on its board. The activist investment firm said at the time that it held about 9.4 million Disney shares, worth about $900 million, which it first began accumulating a few months ago.
Peltz has criticized Disney’s $71 billion acquisition of Fox in 2019 and its failed succession plan. He also noted that “weak corporate governance” had eroded shareholder value over the years.
The activist investor raised the white flag Thursday after Disney announced a sweeping restructuring this week. Disney said it would cut costs by $5.5 billion and cut 7,000 jobs.
Disney is also reorganizing its business into three divisions and will focus on making its streaming business profitable by 2024. Additionally, CEO Bob said his goal is to ask the board to approve the resumption of dividends by the end of the year. Since early 2020, Disney’s dividend has been suspended due to the pandemic.
The changes, part of Bob’s first major moves since returning to the helm at Disney last November, address many of Peltz’s concerns. Disney’s annual shareholder meeting is scheduled for April 3.