Nelson Peltz is ending his proxy fight with the Walt Disney Company board after yesterday’s investor call. During the call Disney CEO Bob Iger announced that the company would restructure into three tiers focused on entertainment, ESPN, and parks and resorts. He also announced $5.5 billion in cost cuts, 7,000 layoffs and the return of dividends for investors.
Petlz told CNBC that his proxy fight was now over after the announcements because Disney is going in a direction that he feels is right saying:
“Now Disney plans to do everything we wanted them to do. We wish the very best to Bob, this management team and the board. We will be watching. We will be rooting.”
Disney made this statement about his withdrawal:
“We are pleased that our Board and management can remain focused without the distraction of a proxy contest, and we have tremendous faith in Bob Iger’s leadership and the transformative vision for Disney’s future he set forth yesterday.”
Of course Disney is happy about it, they were spending a lot of time, money and effort telling shareholders not to vote for Peltz.
But now Disney knows that shareholders are watching and they must perform or it will be a matter of time until another challenger comes forward.
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