Is Disney only on Elon Musk's April Fool's joke?
$Tesla Motors(TSLA)$ CEO Elon Musk tweeted and mocked $Disney(DIS)$, saying he was very excited to join Disney as 'Chief Diversity Officer,' in order to mock Disney for excessively incorporating 'diversity' elements in their works, and for their deliberate political thing.
Of course, Disney's main issue now is not addressing these controversies, but rather the proxy fight. Therefore, Disney's recent stock price has also shown relatively strong performance.
In short, activist investor Trian has launched a challenge to the board seats, aiming to challenge the current structure and management model.
A proxy fight refers to shareholders coming together to use corporate governance rules to pressure the management or board of directors to make changes. Nelson Peltz, founder of Trian Group, has initiated this proxy fight, trying to get himself and former $Walt Disney(DIS)$ CFO Jay Rasulo onto Disney's board of directors.
Therefore, Disney, led by Bob Iger, also needs to gain more shareholder support to secure management control. Currently, according to the Wall Street Journal, external shareholders $BlackRock(BLK)$ and $T. Rowe Price(TROW)$ own 4.2% and 0.5% respectively, both supporting the company. California Public Employees' Retirement System (CalPERS) and others support Trian.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
