The Latest Round of Disney White Papers
We have two more white paper filings to the SEC in fast approaching showdown between Nelson Peltz’s Trian group and Robert Iger’s tame board of directors that he wants to keep tame.
Peltz’s filing was a thorough 130 page evisceration of the Walt Disney Company’s failings. Trian is the opposition. His pitch for himself and Jay Rasulo being on the board is made on a strong business track record.
Since Bob Iger can’t possibly stand on his own merits in 2024, he has brought in the young super cool ValueAct group to be his cheerleaders. And, I must say ValueAct has made a strong case for being on the board of an entertainment company because this white paper (that was filed with the SEC) is hilarious fun for the whole family entertainment.
ValueAct had made their filing and I swear to you it’s Baby’s First White Paper. This thing is nothing but Buzzword bingo.
I can’t decide if this thing was written by a first-year business major, an unpaid intern, or an AI.
No need to take my word for it. Have a look yourself.
This is pointy-haired boss from Dilbert stuff. Rarely have I seen so much space taken up to say so little.
However, there was one frame that caught my eye with how out of date it is. ValueAct wants Disney and the rest of the studios to go to war with Netflix.
This looks like something out of 2018. It’s propaganda from a war that was tragically lost.
Tent poles absolutely failed to bring in the rubes with pockets bulging. More importantly of the franchises listed the only ones that aren’t theatrical failures are Avatar, Jurassic Park, and Despicable Me.
Linear broadcast still makes money but it’s on a countdown timer. When the Boomers clock out that’s the end of linear.
Sports has a future but what form it will take is nowher to be found on this list.
Over, the Streaming War Are. Failed, they did.
Netflix has won. Nobody in their right mind is still chasing the $20 billion dragon.
So that is what ValueAct brought to the party. This is the group run by a guy whose grandfather was the star of comedy variety show and is married to a TV star. These are the guys saying Disney is righteous and super hip. You the stockholder should absolutely vote for Weatherman Bob!
Then there is Blackwells filing which I’m afraid has less entertainment value, but is kind of interesting in its own right. This thing feels like Blackwells felt like it was getting completely ignored (in truth they were). Their filing starts off with a complaint.
“The Board has been using a NOBO list for over a month to solicit millions of votes while claiming that Disney spent Approx. $533K on this list.”
“For Blackwells and Trian to get access to a digital copy of the NOBO list, the Board is demanding we reimburse Disney the entire $533 K amount”
A NOBO list ( Non-Objecting Beneficial Owners) is a list of stockholders not opposing the BOD. Companies rarely if ever keep track of all of them, so they have to go to an outside firm, and depending on the size of the company building a NOBO list can get pricey.
There is nothing illegal in this, however, this is just some of the money the utterly useless Disney board of directors is using in their campaign to defend their non-achievement. The more interesting thing that Blackwells noticed was that ValueAct failed to disclose in their filing that Disney has paid ValueAct $95 million for services rendered that ended in 2022.
Again, this is legal but not reporting it was just a bit janky. If these services resume in 2025, I will lay money that Blackwells will sue somebody, I don’t know who and for what but given their litigious track record it’s a solid bet.
History doesn’t repeat itself but it does rhyme. The last time Disney’s Board of Directors was such a useless disgrace was right before Michael Eisner fell from power.
When stock prices are high investors never care what the BOD is doing because clearly they are doing it right QED.
But when the share price crashes, then and only then do they look at the company’s board and gape in horror.
Developing.
