Nelson Peltz, founder partner and chief executive officer of Trian Fund Management, right, during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Tuesday, June 28, 2022. The era of a few giant tech firms controlling stock market gains is quickly coming to an end, according to activist investor Peltz. Peltz announced the news in an interview with CNBC. Trian confirmed the decision to drop the proxy battle, calling it a “win for all shareholders.”
Iger’s plans for the world’s largest entertainment company include 7,000 job cuts and $5.5 billion in cost savings. He also said Disney’s board would consider reinstating the company’s dividend, which was suspended at the start of the pandemic.
The moves addressed two of Peltz’s biggest complaints. “We are pleased that Disney is listening,” Trian said in a statement after Iger’s announcement.
Proxy fights are expensive and can run into the tens of millions of dollars. Trian also likely already saw a sizable gain on its $1 billion stake in Disney, with the shares climbing 32% so far this year.
Read more: Disney-Peltz Showdown Was a Throwback to Corporate Raider Era
The proxy fight had been shaping up to be one of the biggest board showdowns of 2023. Activist investing has been on the rise this year as large tech and health stocks have lagged and it’s become easier for investors to nominate their own directors under new regulatory rules. With Peltz out of the way at Disney, the big corporate drama to watch now will be what happens with Salesforce Inc., which is being targeted by Elliott Investment Management and several other activist investors.