Recent developments indicate a strategic shift at Disney, influenced by executive changes and critiques from activist investors, including Nelson Peltz's Trian Partners, which beneficially owns $3.5b in Disney stock. Trian's recently published 133-page white paper criticizes Disney's current strategy and board composition, advocating for significant changes. The paper suggests Disney should merge Disney+ and Hulu, eventually phasing out Hulu despite a $9 billion payment to Comcast for a third of Hulu. Trian also proposes spending more on lower-cost projects and introducing a 'streaming margin' incentive for executives. The activist group, which has pushed for board seats, argues that Disney should make fewer movie sequels and take more creative risks. These moves come amid a proxy battle, with Trian blaming 'poor oversight' for Disney's challenges and calling for a more focused content strategy. Peltz's partner, Jay Rasulo, owns $775,000 in Disney stock.
Trian Partners unveiled its plans and complete case for changes at Disney as the proxy fight enters its final weeks. The 132-page report is the clearest look yet at what Trian plans to push inside the board if the activist investor's nominees get voted in. https://t.co/4RHBOyo8Fi
Trian blames 'poor oversight' for Disney's problems in its push for board seats https://t.co/zPuFiLfo4K https://t.co/DxG2BrDOgs
New Disney live-action boss David Greenbaum reportedly pitched his approach to green-lighting projects as one question: "Does this film need to exist?" (via @PuckNews) https://t.co/cLnx8ebBjG
Disney Should Make Fewer Movie Sequels, Take 'More Shots on Goal' With Content Strategy, Activist Investor Argues in 133-Page White Paper https://t.co/Iiw6F4UeQn
Nelson Peltz Slams Disney, From 2019 Fox Deal To Planned Sports Streaming JV, As Proxy Battle Rages https://t.co/wLGOVEk0ZV
New pod: What kind of movies will Netflix and Disney make now? With @Lucas_Shaw. Listen! https://t.co/QRyzfZWIss
Trian Calls on Disney to Spend More on Lower-Cost Projects, Introduce ‘Streaming Margin’ Incentive for Execs in Long-Awaited White Paper https://t.co/JVntJnRuQB
Disney Activist Investor Trian Unveils 130-Page Memo Taking Aim at Bob Iger's Strategy https://t.co/M3T3cOduS7
Trian’s arguments for why they should have seats on the Disney board are the best proof that they should not have such seats. The argument is simplistic for a company far more complicated than Netflix. And there are no real arguments for any changes they suggest might want.
Nelson Peltz has published his manifesto for change at Disney, as the activist prepares for the company's investor meeting https://t.co/XABVZXg9UV
One idea of Trian’s from its white paper on Disney: Merge Disney+ and Hulu (that’s already going to happen) and then phase out the Hulu tile. So Disney will pay Comcast $9b+ for 1/3 of Hulu only for Disney to immediately kill Hulu.
One argument Nelson Peltz has made repeatedly is Disney board members don’t own enough stock so they don’t have skin in the game. Peltz “beneficially” owns $3.5b. His partner Jay Rasulo? $775,000. (According to the Trian white paper)
The long awaited Trian White Paper on The Walt Disney Company is out. https://t.co/lLupYAz5MC
Activist Blackwells says strategy, transparency issues hampering Disney https://t.co/0o0u3KCfiV https://t.co/uRvXQdDYB1
Executive shuffles at two top film studios underscore a strategic shift amid a challenged business. If all goes well, Disney could actually ditch the cookie cutter for the occasional creative risk. From @MattBelloni https://t.co/R8PoOWaAMv