Elon Musk's comments 'have no relevance to the Walt Disney Company', Iger says
By Jon Swartz
The day after Walt Disney Co. vanquished an activist investor challenge to its board, an emboldened company chief executive Bob Iger dismissed the ability of the actions of Elon Musk to sway shareholders.
The comments of Musk, who supported billionaire Nelson Peltz in his failed bid to gain two board seats, "have no relevance to the Walt Disney Company," Iger said in an interview on CNBC on Thursday.
See: Disney prevails in high-stakes board vote
See also: Elon Musk says Nelson Peltz 'definitely' should be on Disney board
Iger deemed the attempt by billionaire Peltz's Trian Fund Management and another hedge fund, Blackwells Capital, as nothing beyond a "distraction" and that Peltz "didn't have any ideas."
Disney (DIS), whose stock has rebounded in recent months, was already focused on making the Disney+ streaming platform profitable, reviving its movie business, and cementing the company's succession plan. Iger's contract runs through 2026.
Dana Walden, co-chair of Disney Entertainment, the business segment in charge of movies and TV shows, is a strong contender to succeed Iger, according to some published reports. If picked, Walden would be Disney's first woman CEO.
Meanwhile, Peltz, who has eviscerated Disney's lackluster stock performance in recent years, blasted the Magic Kingdom for promoting "woke" themes.
In an interview with the Financial Times, Peltz said: "Why do I have to have a Marvel that's all women? Not that I have anything against women, but why do I have to do that? Why can't I have Marvels that are both?"
"Why do I need an all-Black cast?" Peltz said of the Marvel blockbuster, "Black Panther."
The pressure campaign of Trian, which owns more than $3.5 billion of Disney stock and spent $30 million to sway shareholders, has had tangible effects on Disney's current strategy, according to Wall Street analysts.
Indeed, Iger acknowledged that Disney+ needs to increase user engagement, reduce marketing costs, "program more smartly" outside the U.S. and limit password sharing.
-Jon Swartz
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04-04-24 1203ET
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