It seems Bob Iger is doing whatever it takes to keep Nelson Peltz, Ike Perlmutter, and Jay Rasulo from gaining seats on the Disney Board. According to a Walt Disney Company press release, Iger has made a deal with ValueAct Capital Management for help and support in Iger’s choices for Board Seats. The problem is that the status quo will remain, and nothing will change for the floundering company. 

Disney CEO Bob Iger has allegedly made plans with ValueAct Capital Management. Disney has announced they have entered a “confidentiality agreement that enables the company to provide information to the investment firm and consult with ValueAct on strategic matters, including through meetings with the Disney board and management.”

But wait, in return, ValueAct has agreed to support Iger and the Board’s choices for seat nominations. “ValueAct has confirmed it will support the Disney Board of Directors’ recommended slate of nominees for election to the Board at the 2024 Annual Meeting.”

So far, Disney has continued to make bad choices. They brought back Bob Iger after many of his choices put the company in the position it is now in. A previous Chairman of the Board, Susan Arnold, allegedly was the reason Disney got overly political in Florida, which turned a lot of fans off. Under Bob Iger, the company chased the wealthy and continued to alienate and outprice guests. The Board has agreed to double down on failed box office releases (including live-action remakes, Marvel, Pixar), etc. While I am not a fan of Peltz, I completely agree that changes must be made. 

Bob Iger offered this statement about ValueAct:

“ValueAct Capital has a track record of collaboration and cooperation with the companies it invests in, and its Co-CEO Mason Morfit has been very constructive in the conversations we’ve had over the past year. We welcome their input as long-term shareholders.”

The translation is seemingly, “ValueAct will do what I and the Board want and will not threaten our positions.”

Bob Iger has made no secret that he doesn’t want Peltz’s Trian group or Ike Perlmutter to have a board seat. Previously, Iger and the Board appointed new members to seats, including the CEO of Morgan Stanley, Jeremy Darroch, who incidentally was in charge of the company that was hired to give Comcast a valuation total for Hulu for its deal with Disney. 

I would argue that Iger and his Board only want those who will allow them to remain in power and go along with what they want. Much like the people Iger surrounded himself with when he was CEO the first time. Those “yes men and women” were why he was allowed to overspend on Fox and make choices that have impacted the company’s current status. 

In conclusion of, Disney’s announcement, ValueAct’s Co-ECO and CFO Mason Morfit, parrots what Bob Iger keeps repeating about the company.

Disney is the world’s leading entertainment company. It has the best intellectual property, sports brand and parks & experiences assets in the industry. As legacy technologies transition to digital platforms, we believe Disney can lead the media industry forward. We could not be more excited to partner with Bob and the Board to help create long-term sustainable shareholder value.” 

But the issue investors and fans have is that it really isn’t the leader for the industries mentioned anymore.

Disney has the “best IP” but they mismanaged most of it.

“Disney has the best theme parks.” Lately not so much and that statement will definitely need to be reexamined in 2025.

Disney is a “leader in the media industry,” yet they are nowhere near their subscriber targets for the end of September 2024. Their tentpole IP shows are showing declining returns with every new iteration. 

Disney needs people on the board who see results and success, who are not in special deals with Bob Iger to go along with whatever he says. Instead, we need people ready to challenge bad ideas, yet work together with Iger and the Board to find actual solutions. Iger left unchecked Disney to where it is now.

If experience is something that should be considered, Jay Rasulo was with Disney for years and was even the company CFO before Christine McCarthy, back when the company was doing well. Perlmutter ran Marvel for years when it was valuable and films performed at the box office. I may not care for someone personally, but at least from a place of experience, these people have it. 

I’m just worried it will be more of the same and that is the last thing Disney needs right now. But that is my opinion. Yours may vary.

What do you think? Comment and let us know!