Tuesday, 23 April 2024

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Elon Musk would buy Disney stock if Nelson Peltz is elected to board

Elon Musk would buy Disney stock if Nelson Peltz is elected to board

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Elon Musk, the world’s third richest man, promised Disney shareholders he would dip into his vast wealth to buy up stock in the troubled entertainment giant if they voted hedge fund manager Nelson Peltz onto the board today. 

The activist investor is losing a bitterly-fought proxy war with Bob Iger, whose decision to halt ad spending on X threatened to bankrupt Musk’s social media company.

The Tesla boss retaliated by calling for Disney to sack its CEO and is funding a wrongful dismissal lawsuit against Disney filed by actress Gina Carano.

Musk, who recently posed smiling for the cameras standing next to Peltz, openly endorsed the hedge fund manager on Wednesday, predicting good things for the stock price.

“While I don’t own any Disney shares today, I would definitely buy their shares if Nelson were elected to the board,” he posted to X. “He would help reform the company, improve the quality of product and generally serve in the best interests of shareholders.”

The endorsement may come too late, however. The shareholder meeting is scheduled for today, and more than half the votes have reportedly already been cast. 

While the largest U.S. public pension fund, CalPERS, and asset manager Neuberger Berman both backed Peltz, a story in the Wall Street Journal this week predicted Disney had pulled ahead of Peltz, while Reuters reported sources on Tuesday as saying the founding partner of Trian Partners already lost

The leaks angered fellow activist investor and hedge fund billionaire Bill Ackman, who called for the U.S. Securities and Exchange Commission to punish Disney for its carefully timed blow that sunk Iger’s rival.

“The SEC should do a thorough investigation of this proxy contest and appropriately punish whoever is responsible for this miscarriage of shareholder governance and justice,” Ackman wrote on Tuesday, arguing only Disney officers were privy to the vote tally.

Disney did not respond to a request for comment from Fortune

Billionaire Bill Ackman wants Disney punished for leaks

Peltz hopes to shake up a board believed to be too cozy with its CEO.

He believes the entertainment giant’s vaunted value-creating “flywheel” is at risk—and judging from the recent rally in…

Click Here to Read the Full Original Article at Fortune | FORTUNE…


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