Prof G Markets: Disney’s Proxy War, Goldman’s Guidance Miss, and the Dating App Market

Financial Missteps

Nelson Peltz's critique of Disney centers on the company's financial missteps, particularly the costly acquisition of 21st Century Fox. Scott Galloway agrees with Peltz, noting that Disney overpaid for Fox, a sentiment shared by media moguls Rupert Murdoch and Jeff Buchas, who sold their assets at the same time 1. This acquisition significantly increased Disney's net debt from $17 billion to $42 billion, raising concerns about the company's financial health 1.

Disney's just fucked up here. Disney's all wet. First off, just from a strategic standpoint, if you want to silence an activist, the easiest way to silence them is to put them on your board.

--- Scott Galloway

Peltz's criticisms extend to Disney's operational spending, especially in streaming, and the lack of a succession plan, which Galloway believes are valid points 2.

   

Boardroom Tensions

The debate over Nelson Peltz joining Disney's board highlights the tension between activist investors and corporate governance. Scott Galloway argues that Peltz's significant investment in Disney, amounting to $900 million, justifies his place on the board 2. He criticizes Disney's board for their ego-driven decision to exclude Peltz, suggesting that allowing him on the board could bring valuable insights and shareholder empathy 3.

We welcome Nelson Peltz to the board, any shareholder we welcome, we don't have a monopoly on the truth.

--- Scott Galloway

Galloway emphasizes that board members should provide strategic guidance rather than micromanage, and Peltz's presence could help steer Disney towards better financial decisions 3.