Nelson Peltz’s proxy fight was a “distraction” and Disney can now focus on turning a streaming profit and planning for its successor, its CEO Bob Iger said Thursday on CNBC’s “Squawk on the Street,” just a day after handing the activist investor a stinging defeat .
“One of the things that makes me feel great right now, putting the win aside, is that I can devote all of my time with the management team and the board to executing on those priorities,” he said.
While Disney launched a series of stock-raising initiatives in recent months amid the board dispute, Iger noted that Peltz’s second proxy attempt had little impact on the company’s succession strategy, business investments or shifting content plans.
Iger told CNBC that choosing his successor is “the board’s top priority.” He said Disney’s successor committee, established after he returned to his post in late 2022, had held a series of meetings in 2023 and more meetings were planned for 2024. Iger noted that the activism has not changed Disney’s succession process. Iger’s contract runs until 2026.
Iger discussed the challenges Bob Chapek faced when he took over the company in 2020, including the shutdown of film and television production, the closure of theme parks and the halt of live sporting events. Chapek held the post for more than two years before Iger returned.
“Of course we all learn from the past and are prepared for this process to be successful,” said Iger.
In an interview with CNBC on Thursday, Peltz said he has no personal vendetta against Iger but wants to ensure the company has a leadership plan in place.
“The only issue I had with Bob was succession planning, which again falls to the board,” he said.
Iger also disputed the notion that Peltz’s activism was responsible for the company’s recent stock gains – a claim made by the investor himself.
“The market is reacting to the performance of this company,” Iger said. “It didn’t really respond to the activist.”
Disney shares are up 32% year-to-date. They rebounded in February after the company made a number of major announcements during its earnings call, including that it had secured exclusive streaming rights to Taylor Swift’s Eras Tour concert film, a $1.5 billion strategic investment. Dollars had made in Epic Games and would launch a flagship ESPN streaming service.
For months, Disney had been battling Peltz’s Trian Fund Management, which was seeking two seats on the company’s board. Peltz had publicly criticized Disney for the continued underperformance of the stock, the failed succession process and allegedly misguided investments worth billions.
Peltz told CNBC he wouldn’t try to pick another fight against Disney if Iger follows through on his plans to improve the company’s performance.
“I hope Bob can keep his promises,” Peltz said Thursday. “I hope they can do all the things they promised us. I’ll watch and wait. If they do, they won’t hear from me again.”
At Wednesday’s investor meeting, shareholders sided with Disney. Peltz lost his board seat by a 2-1 margin to Maria Elena Lagomasino, and former Disney CFO Jay Rasulo, whom Trian also nominated, lost by a 5-1 margin to Lagomasino, a person familiar with the matter thing said. Retail voters overwhelmingly supported Disney, this person added, which helped Iger receive 94% of the total vote.
A second activist, Blackwells, also failed in his long-term effort to win board seats.
Percentage-wise, voter turnout for the director election was in the mid-60s, another person familiar with the matter said. In 2023, around 63% of Disney shareholders voted.
Since returning to the helm of the company in late 2022, Iger has done a lot to put Disney back in order. He dismantled a new corporate structure introduced by the briefly incumbent Chapek and reduced the number of film and television projects the company produced. Iger also announced a plan last year to invest $60 billion in Disney’s theme park, cruise and experiences businesses over the next decade.
Next up is a new bundled sports service with Warner Bros. Discovery and Fox, as well as a flagship standalone service from ESPN, which will eventually be available directly through Disney+.
“We’re basically trying to serve sports fans in a variety of ways,” Iger said, adding that he doesn’t expect significant cannibalization between the two products.
Iger said the flagship ESPN service will have significantly more content than the joint venture’s ESPN component. He declined to reveal more about the joint venture, including a possible name or price for the service.
Don’t miss these stories from CNBC PRO:
Source link
2024-04-04 15:46:01
www.cnbc.com
