Shareholder Proposal for Disney to Spin Off Real Estate into REIT (& Star Wars)

[HyperspaceMountainPilot]

Why does the value of the stock price during the streaming bubble even matter at this point?

It is telling that they picked a 3 year period (much of which happened under previous CEO leadership) instead of the past year, during which time $DIS outperformed the average stocks in the S&P and NASDAQ.

I don’t think Peltz has shown good judgment and I expect that if he makes it on he’ll be a nuisance and a distraction, like the recent FL drama playing out inside the company. I don’t know if his plans to squeeze extra money out of park goers will produce higher earnings for $DIS shareholders in the short run, but I feel confident that it’s bad for Disney over the long run if it totally prices the middle class out of even occasional trips, and I think the Peltz approach would be bad news for all DVC owners…maaaaaybe not the beach resorts.

 

[AstroBlasters]

duplicate

 

[HyperspaceMountainPilot]

duplicate

I’m not seeing the duplicate post.

 

[sndral]

I think you are confusing the Trian proposal with the Blackwell proposal

https://thefutureofdisney.com/

In any event, we will find out on April 3rd the results of this vote

Looks like corporate raider Peltz has lost his bid to join Disney’s board https://news.yahoo.com/finance/news/exclusive-disney-prevails-over-trian-023749395.html
I’m relieved, the companies where he’s managed to gain a seat on the board have generally underperformed the market as has Trian & at best he would have been an expensive nuisance on Disney’s board IMO.
This article has a nice summary of Peltz’s actual performance https://fortune.com/2024/03/20/nels...t-investor-trian-performance-disney-unilever/ . I didn’t realize that his firm Trian was terminated as the Disney pension fund investment manager in 2021 after several years of underperforming the market.

 

[AstroBlasters]

Looks like corporate raider Peltz has lost his bid to join Disney’s board https://news.yahoo.com/finance/news/exclusive-disney-prevails-over-trian-023749395.html
I’m relieved, the companies where he’s managed to gain a seat on the board have generally underperformed the market as has Trian & at best he would have been an expensive nuisance on Disney’s board IMO.
This article has a nice summary of Peltz’s actual performance https://fortune.com/2024/03/20/nels...t-investor-trian-performance-disney-unilever/ . I didn’t realize that his firm Trian was terminated as the Disney pension fund investment manager in 2021 after several years of underperforming the market.

I’m glad things turned out the way they did, but I am also hopeful this will light a fire under some folks to streamline and improve the operations.

 

[DonMacGregor]

Looks like corporate raider Peltz has lost his bid to join Disney’s board https://news.yahoo.com/finance/news/exclusive-disney-prevails-over-trian-023749395.html
I’m relieved, the companies where he’s managed to gain a seat on the board have generally underperformed the market as has Trian & at best he would have been an expensive nuisance on Disney’s board IMO.
This article has a nice summary of Peltz’s actual performance https://fortune.com/2024/03/20/nels...t-investor-trian-performance-disney-unilever/ . I didn’t realize that his firm Trian was terminated as the Disney pension fund investment manager in 2021 after several years of underperforming the market.

https://www.nytimes.com/2024/04/03/...ytcore-ios-share&referringSource=articleShare

Mr. Iger also won crucial backing from small-fry investors: An unusually large amount of Disney shares (up to 40 percent) are held by individuals, many of them fans of the company’s movies and theme parks. (On average among public companies, individuals own closer to 15 percent of the shares.) More than 75 percent of individual shareholders voted to elect the Disney slate, according to the preliminary tally.

 

[HyperspaceMountainPilot]

Mr. Iger also won crucial backing from small-fry investors: An unusually large amount of Disney shares (up to 40 percent) are held by individuals, many of them fans of the company’s movies and theme parks. (On average among public companies, individuals own closer to 15 percent of the shares.) More than 75 percent of individual shareholders voted to elect the Disney slate, according to the preliminary tally.

We did it friends!

This is a huge win for us DVC members who have literally invested thousands in the future of the parks division.

 

[AstroBlasters]

We did it friends!

This is a huge win for us DVC members who have literally invested thousands in the future of the parks division.

 

[IDSkinner]

I completely disagree with your statement that Solo was “fine”. Solo was a very enjoyable film that is under appreciated by the Star Wars community!

Also, I want to be on record that I believe Rogue One is one of the best Star Wars movies outside of the original trilogy… and it’s amazing how they blended it perfectly into A New Hope….

Rogue One is at the very top of my Star Wars favorites. Well said and it's great to know I'm not the only one.

 

[PCDisFan]

Rogue One is at the very top of my Star Wars favorites. Well said and it's great to know I'm not the only one.

It's the original trilogy and then Rogue One for me. It's a fantastic movie!

 

[The Prophet]

I support the result -- even though Iger spent $40MM of our money to retain 2 board seats
Now onto the biggest issue ... "The Successor -- Part 2"

P.S. If the board were to offer me a 5 year contract, I may consider switching jobs.

 

[DonMacGregor]

I support the result -- even though Iger spent $40MM of our money to retain 2 board seats

Yeah, but from a cash-on-hand perspective, it's like having $100 in your pocket and spending fifty cents.

 

[Chuck S]

I support the result -- even though Iger spent $40MM of our money to retain 2 board seats
Now onto the biggest issue ... "The Successor -- Part 2"

P.S. If the board were to offer me a 5 year contract, I may consider switching jobs.

And Peltz's group reportedly spend $25M, so what is your point?

 

[HyperspaceMountainPilot]

Yeah, but from a cash-on-hand perspective, it's like having $100 in your pocket and spending fifty cents.

As a shareholder, I’m not thrilled about the expense of the defense, but I blame Peltz and his quixotic quest to “bring back the magic” (for shareholders, not the people like my family, who actually fork over truckloads of cash on parks, cruises, DVC, Disney+, and licensed merchandise so that Disney can pay dividends).

40mil is a lot but nothing compared to the damage Peltz would have done to the brand and costs of disruption the business.

I would love to see the board get more input from actual Disney consumers and I really hope they are focused on finding a better successor for Iger.

 

[The Prophet]

And Peltz's group reportedly spend $25M, so what is your point?

The pressure is now on Iger and his board -- Yes it is his board (all but one of whom were appointed on his watch) to turn the company around and have a succession plan in place

Just like a broken clock is right twice a day, one good quarter is not evidence of a turnaround

 

[AstroBlasters]

The pressure is now on Iger and his board -- Yes it is his board (all but one of whom were appointed on his watch) to turn the company around and have a succession plan in place

Just like a broken clock is right twice a day, one good quarter is not evidence of a turnaround

We get it… but the overwhelming majority of shareholders disagreed with you.

 

[Jwaire]

As a shareholder, I’m not thrilled about the expense of the defense, but I blame Peltz and his quixotic quest to “bring back the magic” (for shareholders, not the people like my family, who actually fork over truckloads of cash on parks, cruises, DVC, Disney+, and licensed merchandise so that Disney can pay dividends).

40mil is a lot but nothing compared to the damage Peltz would have done to the brand and costs of disruption the business.

I would love to see the board get more input from actual Disney consumers and I really hope they are focused on finding a better successor for Iger.

Well, they did such a bang up job the first few times. Third times a charm?

Most of these board members are the same ones that let Iger run off multiple successors including decent replacements like Tom Staggs, abruptly "retire" before the pandemic hit the United States and ultimately pick Bob Chapek.

So ...

While Peltz wasn't a perfect pick by any means, CEOs of public companies shouldn't get to hand pick their board of directors. That's why there's no checks and balances and what's wrong with corporate America.

Additionally, why is it OK for a publicly traded company to spend upwards of $40 million shareholder dollars on a marketing campaign against a large shareholder that wants a board seat and to leak unofficial vote counts 24 hours before a meeting? Seems like SEC should maybe look into that.

 

[Bearval]

When I first read your post, my immediate thought was membership extras. There could be no connection between Disney and a third party operator. Argh this would not be good.

Any membership extras that have a cost will most certainly go away. The only "extras" I see surviving would be 10% dining at select restaurants at Disney Springs.

 

[Chuck S]

Any membership extras that have a cost will most certainly go away. The only "extras" I see surviving would be 10% dining at select restaurants at Disney Springs.

Membership Extras? If you're referring to discounts and such, I think "blue card" DVC owners will continue to see exactly the same perks as Annual Passholders. And those of us who are longtime owners remember a time when any discounts were few and far between.

I think Josh D'Amaro would be a strong pick to replace Iger.

In a world where profit and share value mean everything, as apparently it does to corporate raiders, you wind up with mediocrity and decay once they hit their profit goals., and then a swift decline to sell everyting off. It has happened to numberous entertainment companies.. Six Flags, Orion, MGM, Columbia, and we are currently seeing the decline of CBS/Paramount.

 

[HyperspaceMountainPilot]

Well, they did such a bang up job the first few times. Third times a charm?

Most of these board members are the same ones that let Iger run off multiple successors including decent replacements like Tom Staggs, abruptly "retire" before the pandemic hit the United States and ultimately pick Bob Chapek.

So ...

While Peltz wasn't a perfect pick by any means, CEOs of public companies shouldn't get to hand pick their board of directors. That's why there's no checks and balances and what's wrong with corporate America.

Additionally, why is it OK for a publicly traded company to spend upwards of $40 million shareholder dollars on a marketing campaign against a large shareholder that wants a board seat and to leak unofficial vote counts 24 hours before a meeting? Seems like SEC should maybe look into that.

I’m not suggesting Iger deserves to be Disney’s CEO, and I’d be in favor of someone like Staggs or Rhode being added to the board…I just don’t think it should be an outsider culture warrior who wants to transform Disney the way Elon has transformed Twitter (how’s that working out for Twitter shareholders?). I don’t think Peltz would be good for shareholders or employees, and he’d be even worse for Park guests.

Anyway, to answer your question it’s OK because Disney’s directors have a duty to use their best business judgment to defend the interests of the shareholders under prevailing Delaware law, and unless you can prove that they were acting in bad faith or self-dealing or recklessly destroying shareholder value, they are permitted to govern as they see fit— capitalism makes directors the stewards of a business, and if shareholders don’t like how they run the business they can always sell. (Standard disclaimer: I am not your lawyer, this is not legal advice, etc., and this is an oversimplification of more complicated legal tests).