Disney CEO Bob Iger is currently in a heated battle with hedge funds that are trying to have their members added to the company’s board. The expected cost of this proxy battle for Disney and the rival hedge funds is at least $70 million. Retail investors play a significant role as Disney shareholders, making it expensive for both parties to reach out to them for their votes.
The upcoming shareholder vote scheduled for this week has the potential to significantly alter Disney’s future, although the full impact remains uncertain. The record-breaking $70 million spending on the proxy fight is attributed to the unique composition of Disney’s shareholder base. Approximately 40% of Disney shares are owned by individual investors, requiring extensive efforts to secure their votes similar to a political campaign.
The ongoing proxy battle has served as a financial boon for various consultants and media companies. Despite the uncertainty surrounding the potential outcomes of the proxy battle, the involvement of Disney, Nelson Peltz’s Trian Partners, and Blackwells Capital demonstrates the seriousness with which the vote is being treated. This has resulted in financial gains for various involved parties in the interim.
