By: Harriet Cukier

Billionaire investor Nelson Peltz is reportedly planning a renewed effort to secure seats on the board of Walt Disney. This move comes as Disney’s stock has experienced a decline since his earlier conflict with CEO Bob Iger. Peltz, who is 81 years old, has significantly increased his stake in Disney, from 6.4 million shares to over 30 million shares, NY Post reported.

Through his investment firm Trian Fund Management, he aims to request multiple board seats, including one for himself. This development positions Trian as one of Disney’s largest investors, with a stake valued at approximately $2.5 billion, allowing Peltz to pursue the board seats he has sought since the beginning of the year.

In January, Peltz attributed Disney’s stock decline to its board and expressed interest in securing a board seat. He has advocated for operational changes, cost reductions, and a board position. Disney initially rejected his request, stating that Peltz did not comprehend Disney’s business. Subsequently, Peltz initiated a proxy battle against the company but later withdrew his nomination in February. During the same month, Disney’s CEO Bob Iger implemented a comprehensive restructuring plan, which included cutting 7,000 jobs to achieve $5.5 billion in cost savings. This temporarily boosted Disney’s share price, although it has since declined from approximately $113 to about $80 per share, nearing a 52-week low of $78.73. Over the past six months, Disney shares have fallen by nearly 18%.

Trian Fund Management believes that Disney shares are significantly undervalued and has been pressuring Iger, who extended his tenure as CEO through 2026, to reverse the stock’s decline. Bob Iger, who previously retired as Disney’s CEO after a 15-year tenure, returned to the position in November and promptly initiated a significant overhaul, including the job cuts and adjustments to Disney+ pricing.

Trian Fund Management declined to comment on this matter when approached by The Post. In the meantime, Iger has been implementing strategies to enhance Disney’s profitability, such as increasing the price of the Disney+ streaming service and cracking down on password sharing. These price increases will result in a $3 rise in the monthly cost of ad-free Disney+ to nearly $14. Similarly, ad-free Hulu will see a $3 increase, bringing the monthly cost to nearly $18, making it more expensive than the most popular ad-free tier on Netflix. Iger has acknowledged that these price hikes are intended to encourage consumers to opt for the cheaper ad-supported versions of these services, whose subscription prices will remain unchanged.

In January, Disney announced the appointment of Mark Parker, Nike Executive Chairman, as its new chairman, succeeding Susan Arnold. Parker will also head a newly created succession planning committee advising on CEO succession.

Disney’s shares saw a 1.4% rise in extended trading, having faced losses in its streaming business, with the stock price now less than half of its 2021 peak.

Peltz’s Trian Fund Management, owning less than a 5% stake in Disney, believes Bob Iger should not be back in control, calling for operational changes and cost cuts. Trian became a shareholder after Disney’s disappointing earnings report in November, with Peltz expressing interest in a board seat.

Trian criticizes Disney’s excessive compensation practices, lack of cost discipline, and its high-priced acquisitions of 21st Century Fox and the aggressive bid for Sky PLC. Peltz has a history of engaging with companies as a constructive partner.