Nelson Peltz Sells $3.5 Billion Disney Stake After Losing Board Battle

After a dramatic corporate battle with the Walt Disney Company, billionaire Nelson Peltz has made a significant move by parting ways with his substantial investment in the entertainment giant. His hedge fund Trian Fund Management previously held approximately $3.5 billion in Disney stock, with the majority owned by former Marvel Entertainment chairman Ike Perlmutter. However, a source familiar with the investment revealed that Mr. Peltz has now divested his share of these stocks, speaking on the condition of anonymity due to the confidential nature of the matter.

Disney has not provided an immediate comment regarding Mr. Peltz's decision to sell his shares. However, this move appears to alleviate some pressure on the company.

Activist Investor's Criticisms

Nelson Peltz, known for his role as an activist investor, had been vocal in his critiques of Disney's management under CEO Robert A. Iger. His concerns centered around the company's streaming strategy, stock performance, and succession planning. Although he initially eased his criticisms after Disney's announcement of substantial cost reductions, he resurfaced in December with a pledge to advocate for two board seats.

The pivotal moment came in April when shareholders overwhelmingly favored the current board of directors, marking the end of the fierce boardroom contest. Notably, the battle incurred extensive costs, with Trian spending about $25 million to court investors, while Disney allocated up to $40 million for its defense, as per securities filings.