Nelson Peltz, Jim Cramer Agree Disney Has 'Balance Sheet From Hell': Why The Activist Investor Says The Mouse Is Telling Lies

Zinger Key Points
  • "You're right. It is a balance sheet from hell," Peltz says to Cramer.
  • Peltz calls out Disney for claiming to have met with him several times: "The fact is that they didn't."

Trian Partners founder and CEO Nelson Peltz wants to join Walt Disney Co's DIS board, but the Mouse isn't having it.

What To Know: Disney announced opposition to the activist investor's attempt to join the board late Wednesday, which sent shares zipping higher. Thursday morning on CNBC's "Squawk On The Street," Peltz made his case.

"This is the most advantaged consumer company on the planet," Peltz said. 

"However, the TSR, the total shareholder return, over one, three, five, 10 years, has materially underperformed the S&P."

Peltz told CNBC he believes he can help and that his record speaks for itself. Anytime Peltz has sat on the board of a company, its stock has outperformed the S&P 500 by 900 basis points annually, he said.

In the press release issued late Wednesday, Disney noted that it has engaged with Peltz "numerous times" over the last few months, but Peltz said that's a lie.

"The fact is that they didn't meet with me several times ... I had less than a 5-minute phone call with Bob [Iger] ... and then I had one meeting with the board," Peltz said.

Related Link: Disney CEO Bob Iger Terminates COVID-19 Era Work Policy: What You Need To Know

CNBC's Jim Cramer asked Peltz why he isn't asking for more board seats in order to clean up what he called "a balance sheet from hell."

Peltz said, "You're right. It is a balance sheet from hell." He added that he has made significant impacts at companies with just one board seat, and he believes he can do the same at Disney.

"I just have to speak reasonably to these people and explain to them where we think they have gone wrong or what opportunities they're missing," Peltz said.

See Also: Why Disney, Boeing And CVS Are This Investor's Top Stocks For 2023

DIS Price Action: Disney has a 52-week high of $158.53 and a 52-week low of $84.07. The stock is down more than 35% over the last year.

Disney shares were up 3.88% at $100.06 midday Thursday, according to Benzinga Pro.

Photo: Rudy and Peter Skitterians from Pixabay.

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Posted In: NewsManagementTop StoriesMoversMediaBob IgerCNBCJim CramerNelson Peltz
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