Activist Blackwells says strategy, transparency issues hampering Disney
Reuters
Published Mar 04, 2024 08:59AM ET
Updated Mar 04, 2024 12:47PM ET
(Reuters) - Walt Disney (NYSE:DIS) investor Blackwells Capital said the lack of a strong content and technology strategy as well as governance and transparency issues were hampering the entertainment giant's performance, as it attempts to get board seats at the company.
Blackwells, one of the two activist shareholders seeking Disney board seats, said last week the company needed to come up with an artificial intelligence (AI) strategy, and that such a move could offer a strong boost its stock.
"Disney's board lacks critical bandwidth and expertise in content, media, technology and governance best-practices," Jason Aintabi, investment head of Blackwells, said in a presentation published on Monday.
Disney, shares of which were up 1.3% in premarket trading after the news, did not immediately respond to a request for comment.
Nelson Peltz's Trian Fund Management is also campaigning for two board seats at Disney.
Blackwells has largely backed Disney CEO Bob Iger's leadership, but it recently laid out potential changes, including a possible breakup and spinning off its park and hotel assets into a real estate investment trust.
Last week, the grandchildren of Roy and Walt Disney, founders of Walt Disney Co, backed CEO Iger and the board, while opposing activist investors targeting the company.
They warned Disney shareholders in an open letter about the threats posed by "self-anointed" activist investors, calling them "wolves in sheep's clothing" waiting to tear apart the company.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.