The Revengers! How billionaire Disney shareholder Nelson Peltz teamed up with penny-pinching, ousted Marvel exec Ike Perlmutter – who had grudge against Bob Iger – to take on Disney proxy fight and WIN

• Activist investor Nelson Peltz reportedly conspired with ousted Marvel CEO Ike Perlmutter to take control over Disney’s ‘over the top’ budget’
• A plan to push Peltz onto Disney’s board was called off after CEO Bob Iger agreed to leave the company within two years
• The announcement came as Disney revealed plans to axe 7,000 jobs and sever its spending by over $5 billion

Activist investor Nelson Peltz reportedly schemed with penny-pinching ousted Marvel CEO Ike Perlmutter to control Disney’s ‘over the top’ budget. 

The billionaires’ plan culminated in Disney’s recent move to axe 7,000 jobs and slash its spending by over $5 billion, with CEO Bob Iger agreeing to leave his lucrative role within the next two years. 

The announcement followed a proxy-war that upended the iconic company, with key Disney shareholders Peltz and Perlmutter sharing similar criticisms about Iger running the company into the ground by spending too much money.

Perlmutter, who had guided the Marvel franchise for over a decade until he was forced out in 2015, already had a reputation for drastic cost-cutting and it has now emerged that he plotted with Peltz to push for the latest massive spending cut, according to the Wall Street Journal. 

It is reported that the ex-Marvel CEO harbored a long-time grudge against Iger, and has used his influence over the years to try and sharply limit company spending. 

Disney CEO Bob Iger announced he will be leaving his role within two years, after cutting 7,000 jobs and severing the company’s spending by over $5 billion

Activist investor Nelson Peltz reportedly schemed to win a place on Disney’s board to limit its ‘over the top’ budget

Ike Perlmutter, the former CEO of Marvel, had been reportedly plotting to take revenge on Iger after he publicly ousted him in 2015

Their differences saw Iger publicly oust Perlmutter from his role within Marvel in 2015, leading to a behind-the-scenes war between the billionaires.  

Speaking on Thursday about his decision to push Perlmutter from his role within Marvel, Iger told CNBC: ‘He was not happy about it. And I think that unhappiness exists today.’ 

Perlmutter had planned to help get Peltz onto the Disney board, who could use his role to then restrict its budget. 

But the plot was called off after Iger announced he would step down within two years and reduce the company’s workforce – joining a growing number of firms to cut thousands of jobs in recent months. 

A person close to Perlmutter told the Wall Street Journal: ‘For him, overspending is like a cancer. If it’s not constantly watched, it grows.’ 

‘This whole fight was not, in Ike’s mind, about changing the Disney board. It was mostly about changing their attitude,’ he added.

This frugal attitude saw Perlmutter repeatedly butt heads with Iger over Disney’s spending, including arguments over its 2008 franchise starting film Iron Man. 

The executive was said to be so angered by the movie’s ballooning budget that he demanded an action sequence featuring ten Humvees be shot with just three. 

After Iger subsequently pushed out Perlmutter as Marvel CEO, the billionaire plotted with Peltz to overhaul the board and remove Iger from power. 

The proxy-war saw the billionaire support a campaign to maneuver Peltz into a position of influence so he could make significant changes.

Last month, Peltz’s firm Trian Fund Management LP said it owned about 9.4million shares valued at about $900million, which it accumulated several months prior.

Peltz had previously taken a critical stance against Disney’s $71billion acquisition of Fox in 2019, as well as its failed succession planning that resulted in the sacking of Bob Chapek and second reign of Iger. 

The grudge saw him join forces with ousted chief Perlmutter to win control of the company’s board. 

When the feud became public, Iger hit back, claiming the investor – worth roughly $1.4billion – ‘has not articulated either a vision, or even ideas, that are of particular value to us’.

But this crusade came to an end with Iger’s recent bombshell announcement, which will see Disney split its business into three sections and release thousands of staff. 

The announcement also saw Iger agree to step down from his lucrative role within two years, which Peltz celebrated as a ‘great win’. 

Nelson Peltz (left) with daughter Nicola Peltz (right). Peltz ended his proxy bid against Disney on Thursday after the company agreed to billions of dollars in cost cutting measures 

Disney recently announced it is joining several other major firms in culling thousands of staff jobs and taking drastic cost-cutting measures

The changeup also comes after Florida Governor Ron DeSantis seized control of Disney’s Reedy Creek Improvement District, as he vowed to make the company pay its fair share in taxes. 

Following the job cull announcement, Trian praised Iger’s cost cutting moves, with Peltz’s company saying the move was ‘a win for all shareholders’ and the decision ‘broadly aligns with our thinking’.

Peltz’ victory lap also saw him make an appearance on CNBC’s ‘Squawk on the Street’ last week, where he said Disney now ‘plans to do everything we wanted them to do’.

‘We wish the very best to Bob [Iger], this management team and the board. We will be watching. We will be rooting,’ said the 80-year-old.  

Now set to leave his role within two years, Iger has said he plans on using his remaining time to steer the company back to profitability by 2024. 

The company’s recent streaming service price hike likely led to the loss of about 2.4 million Disney+ customers.

Iger also said the company will focus on leaning into fan-favorite franchises that have been massive commercial successes, like Frozen and Toy Story, for which sequels are in the pipeline.

Alongside his previous criticisms over Iger’s spending spree, Peltz has attacked the company’s culture as he declared a war on its woke practices. 

Peltz’s firm delivered a presentation to the company last month branding its recent problems as ‘self-inflicted’, demanding more accountability in its ranks as he launched his bid to join the board. 

The move came amid criticisms of Disney’s ideological campaign to push woke programming on kids as they watch Saturday morning cartoons. 

Despite losing over two million subscribers on its streaming platform in the fourth quarter of 2022 alone, the company still pushed shows such as The Proud Family: Louder and Prouder, which has been branded ‘anti-white propaganda’.

The cartoon featured black children rapping about reparations and saying: ‘Slaves built this country.’

Despite its recent struggles, Disney investors have been largely pleased to see Iger’s return following a short-lived retirement from his role as CEO, with company stock up more than 20 percent since his November return.

Source: Read Full Article