Walt Disney Co (NYSE:DIS, ETR:WDP) shareholders were urged on Monday to re-elect the firm’s existing board members in a blow to activist investors Trian Fund Management and Blackwells Capital.
The duo, which have been building stakes in the media giant in recent years, have sought places on Disney’s board in a bid to reinvigorate what they see as a struggling company.
However, proxy advisory Glass Lewis noted Disney’s latest financial quarter had served as a “promising indication of Disney's strengthening prospects” under boss Bob Iger on Monday.
"We believe investors would be best served endorsing the incumbent directors at this time," Glass Lewis said in a report, cited by Reuters.
Such a recommendation likely dampens hedge funds Trian and Blackwells’ chances in securing places on Disney’s 12-member-strong board, with two and three candidates having been put forward by each respectively.
Trian, headed by Nelson Peltz, has argued Disney faces a “leadership void” with Iger’s planned departure in 2026, alongside suggesting it has been slow to adapt to changes in the steaming market.
Blackwells has previously called on Disney to spin off its park and hotel assets meanwhile, arguing technology needs to be better harnessed if the firm is to dominate the media space in the coming years.
Whether either are successful in securing spots on Disney’s board will be determined through a vote at April 3’s annual shareholder meeting.
The news comes after Disney said last week that US$12 billion and $13.2 billion in value had been generated from Lucasfilm and Marvel Studios respectively since their acquisitions.
Disney had bought Lucasfilm, which includes Star Wars and Indiana Jones, in 2012 for US$4 billion, after the US$4 billion takeover of Marvel in 2009.