• Loading stock data...
Thursday, June 26, 2025

Inside the Proxy Fight for the Future of Disney (and ESPN)

  • Dissident investor Nelson Peltz is seeking two board seats in an upcoming election.
  • The outcome of the shareholder battle promises to have significant impacts on ESPN.
Kareem Elgazzar-USA TODAY NETWORK

Shareholder proxy fights are normally about as far from the sports world as can be imagined, and they rarely elevate to any sort of mainstream zeitgeist. But the one now emerging around the Walt Disney Co. carries major ramifications for ESPN and the future leadership of Disney and, regardless of the battle’s outcome, will render significant impacts across the sports industry.  

For months, billionaire activist investor Nelson Peltz (above) and his Trian Fund Management have sought to gain two board seats when an election is held April 3 during Disney’s annual shareholder meeting. Peltz argues Disney needs to be far more aggressive on multiple fronts, including with regard to a succession plan for current CEO Bob Iger, clarifying ESPN’s digital strategy, overhauling the company’s TV and movie business, and bundling ESPN+ and Netflix. 

On Monday, the divide grew as Trian additionally withheld its votes for Iger’s reelection to the board, according to a CNBC report.

Gaining Steam

Peltz has been opposed by Disney on nearly every front, but he nonetheless has engaged in a broad-based campaign to convey his message, including the publishing of several white papers. He also received a boost last week in his efforts from influential proxy adviser Institutional Shareholder Services, countering the sentiment from another adviser, Glass Lewis & Co., that is backing Disney’s slate of board nominees.  

“Peltz, with his considerable experience on other boards and fiduciary duties owed to a large shareholding group, appears positioned to bring a shareholder perspective to the board,” ISS said. 

But Disney is amassing widespread support on its side, with former CEO Michael Eisner, Star Wars creator George Lucas, JPMorgan Chase CEO Jamie Dimon, the Disney family, and Steve Jobs’s widow, philanthropist Laurene Powell Jobs, among those backing the company. Disney also has the benefit of recency as company shares have risen nearly 30% so far this year. 

“Bringing in someone who doesn’t have the experience in the company or the industry to disrupt [Iger] and his eventual successor is playing not only with fire but earthquakes and hurricanes as well,” Eisner posted on X. 

Even before the recent run-up in lobbying, The Wall Street Journal branded the battle as potentially the most expensive shareholder fight, with more than $70 million projected to be spent. 

Bristol Impacts

The outcome of the proxy fight, in particular, could render seismic impacts on ESPN. Currently, the sports media giant is in the midst of several major initiatives, including the development of a stand-alone, direct-to-consumer version of the network debuting next year, a new sports betting partnership with Penn Entertainment, a potential partial equity sale, and a much-debated streaming joint venture with Fox and Warner Bros. Discovery.

Peltz, however, argues that Disney’s ESPN and sports product strategy is “chaotic,” too risk-laden, and not sufficiently focused on financial returns. 

“While we are open-minded, we are skeptical that a flagship ESPN DTC service is a viable business model given rising sports programming costs and the consumption patterns of sports fans,” Peltz and Trian said in an online presentation on their vision for Disney. “In our view, ESPN will always work best as a wholesale product that is bundled with a broader package of entertainment and sports content.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Bold Trades Shake Up NBA Draft After Predictable Start

A flurry of trades and falling draft positions lead the post-Flagg activity.
opinion

From Woj Bombs to Shams Calm: ESPN Insider Avoids Draft Spoilers

Charania’s presence was fairly muted both on ESPN and social media.
breaking

Cooper Flagg Goes No. 1 to Dallas, Capping Mavs’ Rapid Rebuild

The expected selection extends a wild turn of events for Dallas. 
Oct 20, 2023; Doral, Florida, USA; James Piot plays his shot from the eighth tee during the first round of the LIV Golf Miami golf tournament at Trump National Doral.

From LIV to PGA Tour: James Piot Shows Path Back From Rival..

A former LIV Golf player is competing at this week’s Detroit event.

Featured Today

Mar 15, 2025; Fort Worth, TX, USA; UAB Blazers forward Yaxel Lendeborg (3) dribbles the ball upcourt against the North Texas Mean Green during the first half at Dickies Arena

NIL Is Shrinking the Pool of NBA Draft Entrants

Agents are now advising many players to stay in school.
Apr 24, 2025; Green Bay, WI, USA; Penn State Nittany Lions defensive end Abdul Carter on the red carpet before the 2025 NFL Draft at Lambeau Field
June 21, 2025

‘More Is More’: The Elite Luxury Jewelers Decking Out Athletes

Meet the elite group of luxury designers crafting the biggest statement pieces.
Dec 5, 2024; Miami, FL, USA; FIFA president Gianni Infantino presents the FIFA Club World Cup trophy during the Club Word Cup draw at Telemundo Studios.
June 15, 2025

Revamped Club World Cup Is FIFA’s Billion-Dollar Gamble

The revamped soccer event debuts amid controversy.
Jun 10, 2025; Nashville, Tennessee, USA; United States head coach Mauricio Pochettino stands during the anthem against the Switzerland during the first at Geodis Park
June 14, 2025

Gold Cup Is Complicated for USMNT—but U.S. Soccer Has Its Eyes on..

Uncertain tournament success isn’t fazing forward-looking U.S. soccer.

Fever vs. Aces Draws 5th-Largest TV Audience of 2025 WNBA Season

ESPN will carry seven more Indiana Fever games this year.
June 19, 2025

Pacers Force Game 7, Could Spark Big Ratings Boost for NBA Finals

Game 7 could boost NBA Finals ratings after a slow start this year.
June 23, 2025

NBA Finals Game 7 Is Most-Watched Since 2019, but Series Drops 9%

Game 7 drew 16.35 million viewers, the most-watched NBA game since 2019.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
June 17, 2025

Stanley Cup Final Delivers Drama but Struggles for Eyeballs in U.S.

U.S. viewership fell while Canadian audiences for the event rose slightly.
June 17, 2025

Streaming Tops Linear for First Time, Sports Still Key to TV’s Resilience

Streaming hits another critical milestone in an accelerating media transition.
June 17, 2025

Zaslav Takes Pay Cut, TNT Sports Future Unclear in WBD Shake-Up

The TNT Sports parent company retools its executive pay after shareholder pushback.
Tyrese Haliburton
June 16, 2025

NBA Finals Ratings Up Again in Game 4 but Still Down Overall

More than nine million people watched Games 3 and 4.