Disney wins its boardroom battle

Disney can return to making magic after showing its critics that Bob Iger is here to stay.  

What happened: One of the world’s most important entertainment companies and its CEO Bob Iger prevailed in a boardroom battle against the activist investor Nelson Peltz, marking the end of a dramatic (and expensive) campaign to secure the confidence of shareholders. 

Catch-up: It all started at the beginning of last year, when Trian Partners — Peltz’s asset management fund — disclosed it had built up a US$3.5 billion stake in the company and went on to try and get both Peltz and former Disney CFO Jay Rasulo onto the board. 

• Peltz, who has no experience in entertainment and told The New York Times he was “informed by his children and their high-powered friends,” was openly critical of Disney’s strategy. 
  
  
• He argued the company waited too long to play into streaming and had lost its creative spark, pointing to a string of big-budget film flops, including The Marvels.

Why it matters: From content to theme parks, Disney’s strategic direction plays a key role in shaping the entertainment ecosystem — the company directly competes with the likes of Netflix and Amazon Prime, and has created theme parks that adults actually seem to enjoy. 

• Amid external pressures, Disney announced a push into gaming with a $1.5 billion investment in Epic Games, and an expansion of its parks and experiences segment. 

Bottom line: Disney’s share price has jumped ~50% over the past six months (which Peltz takes partial credit for), but the company’s management of sports broadcasting rights, streaming, and creative output will determine if it can soar back to all-time highs.—SB