Elon Musk, the worlds third-richest man, promised Disney shareholders he would dip into his vast wealth to buy up stock in the troubled entertainment giant if they voted hedge fund manager Nelson Peltz onto the board today.<\/p>\n
The activist investor is losing a bitterly fought proxy war with Bob Iger, whose decision to halt ad spending on X threatened tobankruptMusks social media company. <\/p>\n
The Tesla boss retaliated by calling for Disney tosack its CEOand is funding a wrongful dismissallawsuit against Disneyfiled by actress Gina Carano. <\/p>\n
Musk, who recently posed smiling for the cameras standing next to Peltz, openly endorsed the hedge fund manager on Wednesday, predicting good things for the stock price. <\/p>\n
While I dont own any Disney shares today, I would definitely buy their shares if Nelson were elected to the board, he posted to X. He would help reform the company, improve the quality of product, and generally serve in the best interests of shareholders. <\/p>\n
The endorsement may come too late, however. The shareholder meeting is scheduled for today, and more than half the votes have reportedly already been cast. <\/p>\n
While the largest U.S. public pension fund, CalPERS, and asset manager Neuberger Berman bothbacked Peltz, a story in theWall Street Journalthis week predicted Disney hadpulled aheadof Peltz, whileReutersreported sources on Tuesday as saying the founding partner of Trian Partners hadalready lost. <\/p>\n
The leaks angered fellow activist investor and hedge fund billionaire Bill Ackman, who called for the U.S. Securities and Exchange Commission to punish Disney for its carefully timed blow that sunk Igers rival. <\/p>\n
The SEC should do a thorough investigation of this proxy contest and appropriately punish whoever is responsible for this miscarriage of shareholder governance and justice, Ackmanwroteon Tuesday, arguing only Disney officers were privy to the vote tally. <\/p>\n
Disney did not respond to a request for comment fromFortune. <\/p>\n
Peltz hopes toshake up a boardbelieved to be too cozy with its CEO. <\/p>\n
He believes the entertainment giants vaunted value-creating flywheel is at riskand judging from the recent rally in Disney shares, it seemed as if investors by and large agreed. <\/p>\n
Many of the films Disney produced last yearfloppedat the box office, driving less traffic to its lucrativetheme parks, whose role in turn is to rejuvenate consumer interest in itsunderlying contentlike its Marvel Cinematic Universe franchise and start the process afresh. <\/p>\n
Yet Pixar no longer reliably churns out hits, legendary properties like Star Wars have withered on the vine, and even the once indestructible MCU suffered its lowest box office ever inThe Marvelswhen adjusted for inflation. <\/p>\n
Meanwhile, Disneys animation studio offers up one uninspired live-action retread of a beloved classic after another. <\/p>\n
The companys creative bankruptcy has offered ample fodder for critics and was even lampooned bySouth Park, which singled out Iger andLucasfilmstudio boss Kathleen Kennedy as the culprits behind the mismanagement. <\/p>\n
Venerable proxy advisory firm Institutional Shareholder Services subsequentlyrecommendedinvestors back Peltz in his crusade to shake up the company, but the well-timed Disney leaks may have turned the tables on the would-be board director. <\/p>\n
Ackmanhimself a veteran of proxy battlesargued that most professional money managers are too afraid of losing access to the C-suite and will only vote against a boards recommendations if convinced they will succeed. <\/p>\n
An institution may think: If Peltz is going to lose, it is not worth taking the risk of offending management by voting for him, he wrote, adding that he wasthe victim of a similar tacticwhen facing off against payroll company ADP. <\/p>\n
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The rest is here: <\/p>\n
Elon Musk promises to 'definitely' buy Disney stock if investors elect Nelson Peltz to the board - Fortune<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Elon Musk, the worlds third-richest man, promised Disney shareholders he would dip into his vast wealth to buy up stock in the troubled entertainment giant if they voted hedge fund manager Nelson Peltz onto the board today. The activist investor is losing a bitterly fought proxy war with Bob Iger, whose decision to halt ad spending on X threatened tobankruptMusks social media company. The Tesla boss retaliated by calling for Disney tosack its CEOand is funding a wrongful dismissallawsuit against Disneyfiled by actress Gina Carano. Continue reading