In a new report from Reuters, the activist investor group Blackwells Capital has been urging Walt Disney shareholders to elect its nominated board candidates stating that they would help drive growth, review real estate holdings, and even bring tech expertise.
The nominees have been pushed forward because they could help what was said to be "All strategic possibilities with cold eyes" even pointing to a potential split that would see the company become three separate organizations that could become standalone public companies. This was stated in a letter to the shareholders that Reuters saw although how the outlet received the letter was not stated.
In an upcoming shareholder meeting to be held on April 3rd, 2024, the shareholders can choose from 12 nominees. There are nominations from Blackwell Capital and two from the billionaire investor, Nelson Peltz's Trian Fund Management. The report states that Blackwell is looking to expand the board, while Trian is concerned with succession planning and wants its nominees to replace Disney directors. However, Disney themselves have been urging shareholders to re-elect its directors and not to vote for nominations from either party.
The Nominees
In the Blackwell letter, it was stated that while it does support current Disney CEO Bob Iger and the changes Iger brings it was stated that even Iger "requires oversight and accountability" The letter also presented the qualifications of its nominees. To begin there is, the former general manager of Warner Bros Home Entertainment, Jessica Schell, who was stated to help Disney gain a "Netflix like growth rate on subscribers and pricing for Disney+".
Then there is Craig Hatkoff who has experience in both real estate and capital markets which could help Disney consider using a hotel and hospitality real estate investment trust. Finally, there is Leah Solivan who could help with changing consumer behaviors due to her expertise in augmented reality and virtual reality trends. Blackwell owns an estimated $15 million in company shares.
However, they did not disclose which directors they'd like to replace. Instead, those replaced directors should be reinstated via a board expansion. Disney has not provided a comment on Blackwell's letter at the time of writing.
Then there is Trian, who owns a whopping $3 billion which equates to 1.8% of the company has propped up Peltz and the former chief financial officer Jay Rasulo as replacements for Disney director and head of the Council on Foreign Relations Michael Froman. As well as a former banking executive, Maria Elena Lagomasino. Trian has also pushed for improved succession planning as well as expressing their want to cut costs and what the report describes as more creative spark.
It is still unclear what these new proposed changes will mean for consumers but should either party's nominations grab seats, that could lead to new changes for both the consumers and the company itself.
