Activist investor Blackwells Capital urges Walt Disney shareholders to vote for its three board candidates, believing they would contribute to driving growth, assess real estate holdings, and provide tech expertise.
Company Division into Three Separate Entities
In a letter to shareholders seen by Reuters, Disney nominees could assist in considering various strategic options, including potentially splitting the company into three separate entities that might become independent public companies in the future.
At an April 3 shareholders meeting, Disney shareholders, under new rules, will choose to select from the company's 12 Blackwells nominees and two nominees put forward by billionaire investor Nelson Peltz's Trian Fund Management.
Blackwells aims to add more members to the board, while Trian, worried about succession planning, wants its nominees to replace Disney directors. Disney has advised shareholders to vote for its current directors and not support the Trian or Blackwells candidates.
Blackwell's Capitol Drama
A few weeks ago, Blackwells Capitol released its initial proxy statement, stating its intention to secure Board of Director seats to improve Disney's capabilities by leveraging its expertise in areas they feel the media and theme park giant needs. Sometime later, Blackwells Capitol officially stated their objectives for securing several Disney Board of Director seats, which will be decided in April.
In a notable development noted in an SEC filing, Blackwells Capital officially launched a proxy battle with Disney, proposing three nominees for the company's esteemed Board of Directors. This action reflects a critical stance towards Nelson Peltz's Trian Fund Management.
Blackwells' List of Nominees
In the letter, Blackwells mentioned supporting Disney CEO Bob Iger and the changes he's implementing but emphasized that even Iger "requires oversight and accountability," and Jessica Schell, a former Warner Bros Home Entertainment general manager, could assist Disney in achieving growth rates and pricing similar to those of Netflix for Disney+.
Craig Hatkoff, with his real estate and capital markets expertise, could assist the company in exploring the potential use of a hotel and hospitality real estate investment trust. At the same time, the letter stated that Leah Solivan could contribute insights into changing consumer behavior, given her knowledge of AR/VR trends.
A Disney representative wasn't available to comment immediately on Blackwells' letter.
Blackwells, which has been increasing its stake in recent weeks and now owns approximately $15 million worth of Disney shares, did not specify which directors it aims to replace. Instead, the firm proposed that any incumbent board directors who lose their seats to Blackwells' nominees should be reinstated through a board expansion.
Trian's List of Nominees
Trian, which holds a $3 billion stake, approximately 1.8% of the company, seeks to have Peltz and former Disney CFO Jay Rasulo replace Disney directors Michael Froman, head of the Council on Foreign Relations, and Maria Elena Lagomasino, who is a former banking executive.
In addition to improved succession planning, it seeks cost reductions and more incredible creative innovation.
