Shares of Walt Disney Co. DIS rose in premarket trading on Monday after a Wall Street Journal report that said activist investor Nelson Peltz has increased his stake in the entertainment giant.
Peltz’s Trian Fund Management has boosted its Disney stake to over $2.5 billion and is now the largest shareholder of the company, the report said, citing people familiar with the matter. The firm will likely request multiple seats on Disney’s board, including one for Peltz, it added.
If Disney refuses to accommodate Peltz’s slate of directors, Train could put up its nominees for election at Disney’s annual shareholder meeting next Spring, the Journal said.
Peltz nominated himself to the Disney board earlier this year but withdrew his nomination after the company unveiled restructuring initiatives in February.
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The company’s linear TV business has been on a downhill amid industry-wide challenges and the streaming business is getting squeezed by competitive pressure. Park attendance has also been slack, belying expectations for a big pickup post the COVID-19 reopening. The company is said to be exploring options for its India streaming business operating under the brand name Disney Hotstar.
In premarket trading on Monday, the stock was up 0.75% at $83.56, according to Benzinga Pro data.
This is despite the stock futures pointing to a negative open amid intensifying geopolitical tensions following Hamas’ strikes on Israel and the latter’s retaliatory actions. S&P 500 futures were last down 0.52%.
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