Disney

Disney’s Last Hope Pulls Out

Nelson Peltz was Disney’s last hope at becoming a viable company again. He’s pulled out as his company Trian has sold all of their Disney stock at 120 a share, well above the current price of 100. What does that mean?

The stock had been going up on the bet that Peltz would rescue Disney from the groomers and wokies.

Disney

. Well, he’s thrown in the towel. According to CNBC:

Activist investor Nelson Peltz has sold his entire stake in Disney, a person familiar with the matter tells CNBC.

 

Peltz sold all of his Disney stock at roughly $120 a share, the person said, making about $1 billion on the position. The stock currently trades for about $100 per share.

 

The exit comes weeks after Peltz’s Trian Partners lost a proxy battle at Disney in early April as shareholders reelected the company’s full slate of board nominees. Peltz had been seeking to elect himself and former Disney finance chief Jay Rasulo to the company’s board.

 

Peltz had long taken issue with Disney governance. In October, CNBC reported he upped his stake in the company to about 30 million shares and had reignited his proxy campaign, taking particular aim at Disney’s streaming strategy and a failed succession plan for CEO Bob Iger.

 

This probably is a win for Bob Iger but a long-term loss. The losses in the theaters and Disney+ are piling up and it appears the wokies are happy to see it burn rather than change course. This WILL happen now, it’s not a matter of if. It’s when. The current direction of Disney is NOT sustainable.

The shareholders should sell their stock because there will not be growth now, barring an incredible change of direction from Disney leadership. Do you believe that’s likely? Neither do I.

What’s funny is that this happens on the eve of the release of The Acolyte. Think it’s a coincidence? They are already blaming the fans that it’s failing before it’s been released. One has to wonder. Wait until they lose the Gina Carano lawsuit. 

RIP Disney 1923-2024.

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