Activist investor Nelson Peltz has made headlines by selling his entire stake in Disney, as confirmed by a reliable source. The move comes shortly after Peltz’s Trian Partners faced defeat in a proxy battle at Disney, where shareholders opted to reelect the company’s existing board members.
Peltz’s decision to offload all his Disney shares, valued at around $120 each, resulted in a substantial profit of approximately $1 billion. Currently, the stock is trading at about $100 per share, indicating a profitable exit for Peltz.
The proxy battle that took place in early April saw Peltz striving to secure a board seat for himself and former Disney CFO Jay Rasulo. Peltz had been critical of Disney’s governance, particularly highlighting concerns about the company’s streaming strategy and the lack of a successful CEO succession plan.
Despite the setback in the proxy battle, Peltz expressed satisfaction with the impact Trian Partners had in steering Disney towards value creation and improved governance. Disney’s stock performance has been positive this year, with a rise of approximately 11% compared to the S&P 500.
Disney’s response to the news of Peltz’s divestment remains undisclosed at the moment. The move signifies a significant development in the investment landscape, prompting speculation about future strategies and potential implications for Disney’s corporate direction.
