Disney CEO Bob Iger is facing opposition from hedge funds seeking to add members to the company’s board. Despite retail investors making up a significant portion of Disney shareholders, reaching them is expensive. The outcome of the upcoming shareholder vote could potentially change the direction of Disney, but its impact remains unclear.
This proxy battle is expected to cost Disney and rival hedge funds at least $70 million in efforts to wrangle votes during the campaign. With nearly 40% of Disney shares owned by individual investors, securing votes for the upcoming election presents a unique challenge. Various companies and consultants are benefiting from this fierce battle, with spending going towards proxy solicitors, websites, and advertising in consumer media outlets.
The stakes are high for both Disney and the hedge funds involved in this proxy war. The presence of Trian Partners and Blackwells Capital on Disney’s board could potentially change the company’s dynamics. However, it’s essential to note that merely having representatives from the hedge funds on Disney’s board does not guarantee a change in management style. Nevertheless, one thing is clear – the battle for votes in this proxy fight is proving profitable for various consultants and media companies involved in the process.
In conclusion, the ongoing battle between Disney CEO Bob Iger and hedge funds seeking to add members to its board has taken an unexpected turn, leaving many stakeholders uncertain about what lies ahead. While it remains unclear how this will affect Disney’s future direction, one thing is certain – this proxy war has already proven lucrative for various companies and consultants involved in it.
