Walt Disney Company CEO Bob Iger has reportedly been left “overwhelmed and exhausted” by the challenge of righting the ship at the Mouse House, whose tanking stock price has spurred activist investor Nelson Peltz to further boost his stake in the firm.
People in Iger’s inner circle told Bloomberg News that the CEO, who recently returned to helm the company with great fanfare after the disastrous tenure of his handpicked successor, Bob Chapek, has often joked to confidantes: “Why did I come back?”
Peltz, who called off his proxy fight with Disney in February after Iger committed to a $5.5 billion cost-cutting spree which included laying off 7,000 employees, has lost confidence in the CEO’s ability to turn the company’s fortunes around, according to The Wall Street Journal.
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| Bob Iger |
During the conversation, Iger reportedly sought to reassure Peltz that Disney was on the right footing despite investor sentiment.
But Peltz and his team at Trian Fund Management decided to boost his stake in Disney from 6.4 million shares to 30 million shares as the company’s stock continued to decline over the summer.
That makes Trian — which has over $8.5 billion under management — one of Disney’s largest investors with a stake valued at some $2.5 billion — and sets Peltz up to finally get the board seats he’s been vying for since early this year.
In March 2021, Disney’s stock reached an all-time high of more than $191 per share as entertainment and media companies were reaping the fruits of pandemic-era lockdowns that forced Americans to consume more content at home.
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