Billionaire Nelson Peltz’s Trian Fund Management has sold its entire stake in Walt Disney after a boardroom battle with the media giant.
Disney shareholders had last month backed CEO Bob Iger and other company directors after a multibillion-dollar battle launched by Peltz and Blackwells Capital.
Their campaigns were separate and competitive efforts, but both wanted change at the top of Disney.
The hedge fund was Disney’s fifth-largest shareholder with a 1.77% stake as of March 31, according to LSEG data.
Billionaire Nelson Peltz’s Trian Fund Management sold its entire stake in Disney – about 1.77%
Last month, Disney shareholders supported CEO Bob Iger and the current board.
In a video posted online, Disney said Peltz has a long history of “attacking companies to the ultimate detriment” of shareholders and said it would be “disruptive” and “value-destructive” to include him and his sidekick Jay Rasulo.
He sold the stake for about $120 per share. CNBC reported, adding that Peltz earned about $1 billion.
Trian declined to comment on the report, while Disney did not immediately respond to a request for comment.
Peltz, Brooklyn Beckham’s father-in-law, and his Trian Fund campaign had launched a campaign to win two seats on the board of directors.
The chief executive of Trian Fund Management and Blackwells were seeking five board seats between them, arguing that the media company failed in its CEO succession planning, lost its creative spark and failed to properly leverage new technology.
But Iger received the backing of 94 percent of voting shareholders. Peltz won the support of only 31 percent.
Trian had said he was “disappointed” with the outcome, but noted that Disney’s stock price had risen since he launched his campaign.
Meanwhile, Iger is said to be “overwhelmed and exhausted” after extending his contract for three more years as he battles falling stock prices and challenges to his leadership.
In October, Disney shares fell to record lows of $78. Disney shares were trading at $100 each at the close of trading Wednesday.
Billionaire Nelson Peltz, pictured with his daughter Nicola, who married Brooklyn Beckham last year, launched his first proxy war in January calling on Disney to “restore the magic.”
Jay Rasulo (left) with Mickey Mouse and Bob Iger (center right) in 2005. The former CFO worked at the company for 30 years. Iger recently revealed that the company will “quiet the noise” around cultural issues because it has proven to be bad for business.
In March, Disney lashed out at Peltz’s antics with a political-style video criticizing the activist shareholder’s motivations and qualifications.
In a video posted online, Disney said Peltz has a long history of “attacking companies to the ultimate detriment” of shareholders and said it would be “disruptive” and “value-destructive” to include him and his sidekick Jay Rasulo.
‘Disney could suffer the same fate as other large companies that Peltz has infiltrated before, such as GE and DuPont. “Nelson Peltz has a long history of attacking companies to the detriment of shareholder value,” the narrator said.
Disney argued that Peltz doesn’t understand the challenges facing the company and that his suggestions for improvement “are nothing new.”
Neither Peltz nor Rasulo have the skills to help Disney, the company said.
Peltz’s daughter Nicola (pictured right) married Brooklyn Beckham last year.
Brooklyn Peltz Beckham and his wife Nicola Peltz Beckham are pictured in 2022
In September, Iger revealed that the company will “quiet the noise” around cultural issues because it has proven to be bad for business.
The company has been locked in a legal battle with the Florida government and Ron DeSantis after former CEO Bob Chapek criticized the so-called “Don’t Say Gay” bill.
DeSantis targeted Disney’s special tax district, replaced its board with allies and led the effort to rename the Reedy District the Central Florida Tourism Oversight District.
Before DeSantis’ elected board of directors took control, Disney created a development agreement for future investments.
These were dismissed by the new board, leading to a federal lawsuit.
Disney has since dropped a large part of its federal lawsuit against Florida’s governor.
Iger extended his contract through 2026 and hinted that he will retire again at that time, once a suitable successor has been found and named.
Meanwhile, Peltz’s daughter Nicola married Brooklyn Beckham in 2022 and has been accused of having been a ‘nightmare bride’ in a new documentary about her bitter dispute with her wedding planners.