Activist investor Nelson Peltz is planning to push for board seats at Disney (NYSE:DIS) once again, as its stock continued to decline despite the entertainment conglomerate’s reorganization efforts, the Wall Street Journal reported citing unnamed sources.
Peltz’s Trian Fund Management, one of Disney’s (DIS) largest shareholders with an over $2.5B stake, is expected to request multiple seats, including one for Peltz.
If Disney (DIS) does not agree, the hedge fund may nominate directors at the company’s annual meeting next spring. Nominations can be submitted from December 5 till January 4.
Trian believes Disney’s (DIS) shares are significantly undervalued and the company needs a board that is more accountable and aligned with shareholders, WSJ reported.
Peltz previously tried to run for a seat on Disney’s (DIS) board, following the company’s rejection of his request to become a director.
He withdrew his nomination after Disney (DIS) announced major cost cuts. At the time, Peltz insisted that Disney (DIS) CEO Bob Iger had to deliver on his promises.
However, Disney (DIS) shares dropped ~25% since Peltz ended his proxy fight, and even notched their lowest level in a decade.
Disney (DIS) has been faced with a host of challenges, including the Hollywood strikes that froze production, and continued losses at its TV and streaming units.
Disney (DIS) aims to achieve profitability at its streaming segment by September 2024, and had raised prices in August. Disney (DIS) is also in talks to sell its streaming and TV businesses in India.