Activist Peltz Makes Nice With Disney, Ends Board Challenge

Activist investor Nelson Peltz on Thursday ended his quest for a board seat at Walt Disney Co  after Chief Executive Bob Iger laid out plans to fix the home of Mickey Mouse, cheering investors.

"The proxy fight is over. This is a win for all shareholders," a spokesperson for Peltz's Trian Fund Management said.

Nelson Peltz

Reuters reports the decision came only hours after Disney reported earnings that topped Wall Street expectations and Iger outlined a corporate restructuring that included 7,000 job cuts and addressed many of Peltz's criticisms.

After weeks of trading increasingly personal barbs, Peltz extended an olive branch to Disney saying he congratulated the company and its CEO on new "operating initiatives" that dovetail with his thinking.

Disney issued a statement applauding Peltz's decision to end the board challenge. "We have tremendous faith in Bob Iger’s leadership and the transformative vision for Disney’s future he set forth yesterday," the board said.

Trian owns a stake of nearly $1 billion in Disney and had criticized the company for bungled succession planning, overpaying for new assets and runaway costs.

Disney provided more details on Thursday about its restructuring, which returns control over business units to the company’s creative executives.

Iger, who came out of retirement in November to return to Disney, on Wednesday dazzled Wall Street on his first earnings call since replacing Bob Chapek, who was fired last year after the company in November reported a 66% drop in quarterly profit.

The CEO addressed issues Peltz had raised in his proxy battle and said Disney was reorganizing into three divisions: an entertainment unit encompassing film, television and streaming, a sports-focused ESPN unit and one with parks, experiences and products.