Nelson Peltz, the billionaire investor, has made a significant profit of $1 billion by completely divesting from a contentious proxy battle. Peltz, who is the owner of Trian Fund Management, recently sold his entire stake in Disney at a price of $120 per share, boosting his wealth considerably. This development was reported by CNBC, noting that Disney’s stock is currently trading at approximately $100 per share.
Following the news of Peltz’s departure, Doug Kass of TheStreet Pro commented, “With Nelson Peltz’s exit, the shares have declined to $100/share. Given the ongoing market correction, it is increasingly likely that Disney’s stock will further decline to the low $90s.”
Peltz’s decision to sell off his Disney shares comes after the company’s shareholders voted against his request for multiple seats on Disney’s board of directors. Peltz had previously claimed that the company was facing a crisis, leading to the proxy battle.
Prior to the vote, Trian Fund Management, the company led by Peltz, launched a campaign called “Restore the Magic” last year. The campaign argued that Disney had lost its way in the past decade and attributed the underperformance to a lack of focus, alignment, and accountability within the Board.
Peltz also expressed his strong disapproval of Disney’s “woke” messaging in its recent movies and TV shows. In an interview with the Financial Times in March, he stated that people watch movies and shows for entertainment, not to receive a message.
Disney opposed Peltz’s appointment to its board and urged shareholders not to elect him, citing his lack of skills and experience in media.
Peltz had a significant ownership of Disney shares. In October, Ike Perlmutter, the chair of Marvel, granted Peltz voting rights for his 25 million Disney shares, resulting in Trian Fund Management’s stake in Disney increasing to approximately 33 million shares.
Last month, when Peltz requested to join the board, Disney rejected the request and stated that they were eager to focus on other priorities.
In a press release, Disney CEO Bob Iger said, “With the proxy contest now behind us, we are eager to dedicate all our attention to our most important goals: delivering growth and value for our shareholders and ensuring creative excellence for our consumers.”