Disney CEO Bob Iger's "boomerang" return to the helm of the entertainment giant in 2022 came after his "handpicked" successor Bob Chapek flopped.
Notably, the now 72-year-old veteran executive had delayed retirement at least four times before handing over the reins to Chapek, but that was not to last. He was lured to the captain's seat after Chapek's crash-and-burn for another two years to "clean up the mess", as reported by the Wall Street Journal.
Now, two years later, the battle for succession has resurfaced. We take a look at what's happening.
Reports emerged on February 1 that Disney's board has in a unanimous decision extended Iger's contract as CEO till 2026-end, Reuters reported. The annual meeting of shareholders has also been scheduled for April 3, 2024.
In a statement, the company said the board and Iger "remain actively engaged in the high-priority work of succession planning".
On the same day, Reuters also reported that the tussle between the Walt Disney board and investor Nelson Peltz has escalated with the latter convinced that his proposed candidates are better equipped to plan for Disney's future after Iger's re-exit.
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Peltz, octogenarian billionaire and hedge fund manager, in a letter to investors, blamed the entertainment and media conglomerate's board for botched strategic decisions. It is to be seen if this will hold any sway over investors during the April 3 meeting.
Peltz's firm, Trian Fund Management, filed a regulatory statement suggesting the replacement of Disney directors Michael Froman and Maria Elena Lagomasino with Peltz himself and former Disney CFO Jay Rasulo. According to Trian, Froman and Lagomasino lack essential skills in succession planning, media, and entertainment, while Peltz and Rasulo possess expertise crucial to Disney's strategy.
In response, Disney issued a press release asserting that its 12 nominees are the most qualified to enhance shareholder value. The company urged investors to reject Trian's nominations, citing Peltz's alleged lack of media experience and Rasulo's "stale" perspective.
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Disney also distanced itself from the three board candidates nominated by Blackwells Capital, emphasising that they lack the necessary talent, skill, or expertise for driving growth. The company outlined its succession planning efforts in an updated proxy filed with the United States Securities and Exchange Committee (US SEC).
According to Disney, its succession planning committee held six meetings in 2023, with the recent addition of James Gorman, a former Morgan Stanley CEO experienced in CEO succession processes. The board has engaged with its largest shareholders and sought input from advisors and a search firm in the quest for Iger's replacement.
More concrete developments would only be apparent after the April 3 investors meet.
Amid rising speculation around Disney selling its business in India, Iger in November said the company would like to stay on in the market.
“In India, our linear business actually does quite well. It’s making money. But we know that other parts of that business are challenged for us and for others, and we are looking, I’ll call it expansively. We’re considering our options there. We have an opportunity to strengthen our hand. It is maybe the most populous country in the world, or just still second to China and about to pass them. We’d like to stay in that market. And we also are looking to see whether we can strengthen our hand, obviously, improve the bottom line," Iger said during an earnings call.
Disney Star operates more than 70 multilingual TV channels in India, besides the video streaming platform Disney+ Hotstar. Several entities, including Mukesh Ambani-owned Reliance Industries (the owner of Viacom18), the Adani Group, and Sun TV Network, have explored the acquisition, either in full or in part, of Disney’s Indian business.
On February 1 it was reported that Reliance and Disney are in talks to merge their India media businesses, with Reliance set to pick up a 51-54 percent stake valuing the US giant's domestic business at $3.5 billion. Under the deal, Reliance Industries broadcast division Viacom 18 will merge with Disney India businesses.
Meanwhile, Disney's India assets have halved to $4.5 billion, less than the $10 billion the US entertainment giant has previously pursued, Bloomberg reported this week.
(With inputs from Agencies)
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