The Walt Disney Company (DIS) prevailed in its battle with activist investors Nelson Peltz and Blackwells, but that doesn’t mean the fight is over.
Needham & Co. Senior Media and Internet Analyst Laura Martin says that Petlz’s pressure did help spur some change at Disney, not to mention, boost the stock price. As a result, she says, Peltz "lost the battle, but he sort of won the war, if a billionaire’s war is about making money." However, the fight may not be over for Disney. Martin thinks that "activists will continue to circle The Walt Disney Company unless the share price keeps going up." That means, the "pressure on Bob Iger until 2026, when his contract expires, will stay really tight."
As to why shareholders stuck with Iger and Disney over Peltz, Martins gives three reasons: preserving the Disney brand, they like Bob Iger, and that Nelson Peltz doesn’t have entertainment experience.
On the issue of succession, Martin notes it is something Disney will have to deal with, but the more urgent needs are cost-cutting and revenue growth.
Watch the video above to hear what Martin says could be the catalysts to move Disney shares higher. She also weighs in on the latest news surrounding a potential deal for Paramount (PARA).
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