The Walt Disney Company has a lot riding on one day this April. Disney is in the middle of a proxy battle with Nelson Peltz, Ike Perlmutter, and Jay Rasula.
Things may soon come to a head, as Disney’s annual shareholder meeting will take place on April 3rd, 2024. Ahead of the big day, both Peltz and Disney have been campaigning for shareholder votes, and now we have a new development.
Earlier this year, Disney declared its official rejection of the Trian nominees for the Board. Disney stated,
“The Board does not endorse the nominations of Nelson Peltz and James Rasulo put forth by Trian Fund Management, L.P. and its affiliates, led by Nelson Peltz and supported by former Disney executive Isaac Perlmutter (collectively, the ‘Trian Group’). The Board recommends that shareholders do not vote for the Trian Group nominees, and that they reject a related proposal from the Trian Group to amend the Company Bylaws.”
Even the Disney grandchildren, including nine grandchildren of Walt and Roy Disney, have taken Iger’s side in the proxy battle. But that hasn’t stopped Nelson Peltz, former Disney exec Ike Perlmutter, and Blackwells Capital. The group (known as “Activist Investors“) is attempting to gain seats on the board, and they aren’t holding back.
Peltz and his allies believe they have a solution to Disney’s sagging stock price and even published a 133-page memo detailing their opinions. Ultimately, the proxy battle will come down to the voters, and investors now have the option to use a marketplace called Shareholder Vote Exchange to make some money.
According to Business Insider, a bidder on the Shareholder Vote Exchange website is offering up to $100,000 for 500,000 proxy votes ($0.20 a vote). The website does not share the names of its bidders, but Business Insider confirmed that the bid is from a current Disney shareholder. Additionally, the $100,000 bid must meet the 500,000 vote threshold. As of the afternoon of March 6th, the auction has about 20,600 proxy votes for sale.
Could this throw a wrench in Disney’s plans? We’ll have to wait and see. Keep in mind that the meeting takes place virtually on April 3rd, 2024. With just under a month away, we’ll be keeping our eyes out for additional updates. Stay tuned for more.
Disney Grandchildren Call Activist Investors “Wolves in Sheep’s Clothing” in New Statement
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I’ve been a Disney shareholder for approaching two decades now. I’ve had the shares passed down from my parents, ended up in scottrade, ended up in TDAmeritrade, now it’s in Schwab. I’ve had the shares through it all but I’ve maybe voted my shares once or twice through the years. I have never heard about selling votes. This is something new for me. I wish the Shareholder voter exchange people well. I will be voting my shares but maybe others will find it worthwhile to make a couple of bucks. Different strokes for different folks