Disney’s prolonged struggle with activist investor Nelson Peltz came to an end this week, with Peltz selling off the last of his company’s shares in Disney. Peltz’s retreat is a huge win for Disney CEO Bob Iger, demonstrating the support of most stakeholders for his stewardship of the company. However, Peltz also made out quite well, by netting over $1 billion in profit from his investment.
Peltz has an established track record as an activist investor, buying up large stakes in blue chip companies to be in a position to influence their decisions, and then later selling his shares at a considerable profit. Before Disney, he followed this recipient with his investments in Proctor & Gamble and Unilever.
In the case of Disney, Peltz joined forces with the former head of Marvel Studios Ike Perlmutter to wage war on Iger, including being publicly critical of Iger’s strategies and tactical execution. In part because of this pressure, Iger was pressured into decreasing investments to grow new businesses and instead cut costs across the board.
In the end, the proxy battle between Iger and Peltz may have benefited both sides. Peltz was able to cash out his investment with a large profit and Disney shares in 2024 have outpaced the growth of the S&P 500 stock index.
A lot is on the line for Disney in the 12 months ahead, such as whether the Pixar brand will remain viable in the theatrical marketplace. But with tracking looking strong for both INSIDE OUT 2 and DEADPOOL & WOLVERINE, both Iger individually and Disney as a company may be on track to regain some of the luster they have lost over the past several years.