Wirestock
Speculation arises as Walt Disney (NYSE:DIS) shareholder Blackwells Capital makes a bold move by filing a definitive proxy statement, advocating for a potential three-way split of the entertainment giant.
Scheduled Q1 results coupled with this strategic maneuver saw Disney shares surge 2.5% in anticipation.
Blackwells, known for its previous intention to nominate three board candidates, now solidifies the notion of a potential breakup scenario. In a commendable effort to sway the trajectory of the entertainment behemoth, Blackwells suggests splitting Disney into three distinct entities, focused on sports, entertainment, and theme parks.
The activist’s persuasive tone was evident in the letter addressed to Disney, stating, “Disney may simply be too complex for any one successor to Mr. Iger to manage holistically, and Blackwells believes that it is the responsibility of the Board to oversee these types of analyses in the ordinary course.”
This latest development from Blackwells comes in the wake of fellow billionaire activist investor Nelson Peltz’s formal initiation of a proxy fight. Peltz, alongside former Disney CFO Jay Rasulo, has joined the scene with their own nominations in tow.
Further fanning the flames of change, Blackwells advocates for the potential separation of Disney’s owned real estate, which currently represents approximately 44% of its market capitalization at cost. The proposed move is to create an independent publicly listed REIT or a series of investment vehicles, with the aim to distribute shares, cash, and/or interests to shareholders.
Blackwells Capital, a holder of Disney (DIS) stock since 2018, has positioned itself against Trian’s proxy fight, demonstrating unwavering conviction in its vision. Simultaneously, another activist investor, Ancora, has voiced support for adding Peltz to Disney’s board, emphasizing the widespread nature of the push for change within the Disney hierarchy.
Amidst the mounting pressure, Disney had previously nominated 12 directors for election at its upcoming annual meeting. The board, however, refrained from endorsing the nominations of both Peltz and James Rasulo proposed by Trian Fund Management, as well as those of Blackwells Capital.
