Former Marvel CEO Ike Perlmutter has made headlines by selling his entire stake in Disney, amounting to nearly $3 billion.
This decision follows a resounding defeat in his bid to shake up the Disney board.
Perlmutter’s sale highlights ongoing tensions and significant changes within the entertainment giant.
Perlmutter’s Sale of Disney Stake
Former Marvel boss Ike Perlmutter has sold his entire stake in Disney for nearly $3 billion. This move comes after his joint bid to shake up the board was soundly defeated.
Perlmutter offloaded his 25.6 million shares at an average price of just under $115. His decision to sell was driven by a lack of confidence in the company’s current management.
Perlmutter’s History with Marvel and Disney
Perlmutter joined Disney in 2009 when Marvel Entertainment was acquired. He became CEO of Marvel in 2009, but his influence extended back to the early 1990s as a board member of Marvel Comics.
However, in 2015, he was pushed out of his position and was eventually laid off in 2023 when Bob Iger returned as Disney’s CEO.
The Failed Board Campaign
Perlmutter had backed hedge fund billionaire Nelson Peltz’s attempt to join Disney’s board. This campaign was motivated by Bob Iger’s failed attempt to appoint a successor.
Their efforts were significantly undermined by the disastrous stint of former CEO Bob Chapek, who cost the company millions through poor management.
Peltz and Perlmutter criticised the board for its failure to properly vet Chapek before his appointment. However, Peltz’s campaign was defeated by a 2-to-1 margin at the annual meeting in April 2023.
Impact of Perlmutter’s Departure
After the defeat, nearly 51% of shareholders voted against Peltz, and Perlmutter sold his stock between April and mid-July. Peltz, who is considered an activist investor, also sold his shares around the same time.
Following April’s vote, Peltz vowed to continue his critique of Disney if the board did not deliver. He believed that the company’s performance needed drastic improvement.
Iger’s Challenging Tenure
Bob Iger has led Disney for a 17-year term, steering the company through various challenges like the pandemic, scandals, and the rise of online streaming.
Iger originally handed over the CEO role to Chapek in 2020, only to return less than three years later due to Chapek’s poor performance.
Iger plans to step down permanently in the coming years, with plans in place to hand over by 2026. Four candidates have been identified as potential successors.
Possible Successors at Disney
The candidates for Iger’s replacement include Dana Walden, Alan Bergman, Jimmy Pitaro, and Josh D’Amaro.
Their selection aims to avoid the issues faced during Chapek’s tenure. The successful candidate is expected to take over by 2026.
Activist Investors and Disney
Activist investors like Peltz invest in companies they believe are undervalued and lobby for changes to improve performance.
Peltz’s attempts to influence Disney’s board reflect his strategy of seeking value through corporate governance changes.
In conclusion, Ike Perlmutter’s exit and the sale of his Disney stake symbolise a significant shift in the company’s landscape.
His departure, alongside Peltz’s ongoing activism, underscores the power struggles and strategic battles shaping Disney’s future.
As Disney navigates these changes, the company’s ability to manage internal and external pressures remains to be seen.