The ongoing battle between Disney CEO Bob Iger and hedge funds seeking to add members to the company’s board has reached a boiling point. With retail investors representing a significant portion of Disney shareholders, it is costly to reach them. As a result, the outcome of the upcoming shareholder vote could have a significant impact on Disney’s future direction.
The upcoming proxy battle is expected to cost Disney and rival hedge funds at least $70 million in efforts to secure votes during the campaign. Despite individual investors owning almost 40% of Disney shares, securing their support poses a unique challenge. To achieve this, companies and consultants are benefiting from this intense competition, with spending going towards proxy solicitors, websites, and advertising in consumer media outlets.
While it remains uncertain what the results of this week’s election will be, the stakes are high for both Disney and hedge funds alike. The presence of Trian Partners and Blackwells Capital on Disney’s board could potentially alter its dynamics. However, it’s crucial to note that having representatives from these hedge funds on Disney’s board does not necessarily mean a change in management style will occur. Nevertheless, one thing is clear – the battle for votes in this proxy fight is proving lucrative for various consultants and media companies involved in the process.
In conclusion, the ongoing proxy battle between Disney CEO Bob Iger and hedge funds seeking to add members to its board has heated up. With retail investors representing a significant portion of Disney shareholders, securing their support poses a unique challenge due to its expense. The outcome of the upcoming shareholder vote could change the direction of Disney; however, its impact remains unclear.
This proxy battle has resulted in increased spending by companies and consultants towards proxy solicitors, websites, advertising in consumer media outlets as well as hiring more professionals who specialize in these areas.
Overall, while there may be some changes if Trian Partners or Blackwell Capital are added to the board, there is no guarantee that they will significantly alter Disney’s management style. It remains uncertain what will happen after this week’s election results come out; however one thing is clear – this proxy fight has been profitable for various consultants and media companies involved in it.
