Trian sends letter to Disney shareholders ‘starved of returns’

The Trian Group, which beneficially owns $3.5B of common stock in The Walt Disney Company, released a letter to its fellow Disney shareholders. The letter says in part: “Disney has lost money for its shareholders over a long period of time. A year ago, faced with a proxy contest that sought to bring accountability for these failures, Disney attempted to assure shareholders that a ‘significant transformation’ was underway. In early 2023, Disney outlined a plan to ‘succeed at succession,’ reignite the Company’s creative engine and achieve profitability in the streaming business. A year later, however, Disney shareholders are no better off. It turns out, Disney’s story was just a fairy tale. Disney’s stock price is lower now than a year ago; its streaming business lost another $1.7 billion; 2024 earnings per share estimates are down nearly 20%; two of Disney’s last five movies have failed to turn a profit; and the Board has still not identified a successor for Mr. Iger. With the stock waning and Disney facing another proxy contest, Disney appears to again be trying to distract shareholders with what we see as a fanciful tale, claiming it has “turned the corner and entered a new era.” And with that, Disney announced a slew of new promises and ideas – most still in the process of being developed – hoping that shareholders would just believe all was well and improving. To improve the focus, alignment and accountability of the Board, Disney needs new independent directors. Help us elect Nelson Peltz and Jay Rasulo, who pledge to ask hard questions, work with the rest of the Board and management to develop thoughtful strategies, align the interests of executives with shareholders and hold the leadership team accountable for performance. And to do so all the time, not just when the company faces a proxy contest. To ensure the election of Nelson Peltz and Jay Rasulo, it is essential that shareholders vote “FOR” Trian Nominees, Nelson Peltz and Jay Rasulo, and “WITHHOLD” on Disney Nominees, Michael B.G. Froman and Maria Elena Lagomasino, and All Three Blackwells Nominees.”