CNBC’s Jim Cramer called Thursday Disney to get activist investor Nelson Peltz a seat on the board.
“It’s the board, the shop stewards who haven’t done a good job. Not the shareholders and not Peltz. Now someone like Peltz, who’s been hugely successful, wants to join them and they act like that’s a problem,” he said.
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Trian Fund Management, Peltz’s activist firm, filed a preliminary proxy statement Thursday to appoint the investor to Disney’s board of directors.
Peltz laid out his plan for a proxy fight against the entertainment giant on Thursday on CNBC’s “Squawk on the Street.”
He highlighted his troubles with Disney, including Fox’s $71 billion acquisition in 2019, which he says wrecked the company’s balance sheet, the company’s declining value in recent years, and what he sees as poor corporate governance .
Cramer agreed with Peltz’s assessment of the costly Fox acquisition and accounting problems, and criticized Disney for declining the activist investor’s bid for a seat on the board.
He also reminded investors who own shares of the company that a proxy fight could erode shareholder returns.
“A lot of money, your money if you’re a shareholder like my charitable foundation, is being spent preventing Nelson Peltz from joining the board … although he’s not the type to be involved in the disastrous Fox takeover or the disastrous decision.” Bob Chapek, the CEO, was involved,” said Cramer.
Disclaimer: Cramer’s Charitable Trust owns shares of Disney.
https://www.cnbc.com/2023/01/12/jim-cramer-says-disney-should-allow-nelson-peltz-to-join-its-board.html Jim Cramer says Disney should allow Nelson Peltz to join its board