Disney has built a legacy that is almost impossible to beat because if someone starts a company in 2023, it will take at least 50 years, even if they put twice the effort as Walt Disney Company.
However, it isn’t the same anymore, with projects being underwhelming and political upheaval tearing the company apart instead of focusing on its gradual development.
Don’t get me wrong, Disney is not heading the path of shutting down, but politics are holding it back quite a lot. A similar hostile takeover has apparently taken place at Disney. So, what happened?
The billionaire investor, Nelson Peltz, from Trian Fund Management, has been steadily trying to get a seat as a Disney board member, but he was rejected earlier this year. Now, in November 2023, a meeting has been slated to take place after Thanksgiving, and he might finally be able to get his wish, leading to speculations that a hostile takeover may be in the works.
Disney’s Hostile Takeover: Is It Happening?
Although Disney has been one of the major media platforms as well as producers, funding the creation of several animated and live-action movies and TV shows, it hasn’t been very profitable lately.
It reportedly earned a staggering $22.3 billion in the third quarter of 2023, which is a steady increase compared to every quarter in the past decade. However, due to the ever-growing investments and disappointing productions, it only earned around $250 million in profits.
While that amount of profit would be something unbelievable for many major companies, Disney, which has a $170 billion net worth, would definitely find it as a loss compared to its efforts.
This led to much speculation, including the insecurity the employees at Disney are facing, so what exactly is happening at Disney?
Remember when Bob Iger stepped down as the CEO of Disney in 2020? Well, he returned to his mantle in November 2022 and has been leading the company ever since.
However, ever since the removal of Bob Chapek (former CEO who took over Bob Iger in 2020), not many were happy with the board’s decision, especially the billionaire Nelson Peltz from Trian Fund Management.
In January 2023, Peltz, who now has 30 million shares worth $2.5 billion as a whole in Disney, tried to get not one but multiple seats on the company’s board but was apparently rejected.
However, it seems Peltz is back stronger than ever, and an emergency board meeting has been initiated at Disney, which will reportedly take place after this Thanksgiving (no date has been specified).
The main aim of this meeting is to address the opportunities that the company has been missing in generating revenue as well as necessary substantial strategic implements.
On the other hand, Peltz is offering his opinion of prioritizing the profits of the company for the time being rather than being political, so the upcoming meeting is likely to give him a seat on the board.
While these are mere speculations, the uneasiness at the Disney company gave rise to doubts about the hostile takeover since it hasn’t had much success in the last two years.
We await further details on the situation as it is unclear what the board members have decided concerning Peltz’s seat in the company.
So, what do you think about Disney’s hostile takeover rumor? Do you believe it has been spiraling downwards for the past few years?