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

Investor Criticisms

Nelson Peltz, an activist investor, has voiced strong criticisms against Disney's management, particularly targeting their financial decisions and dividend policies. He argues that Disney's $71 billion acquisition of 21st Century Fox was a misstep and criticizes the elimination of the company's long-standing dividend, which he sees as a symptom of broader financial mismanagement 1. Scott Galloway agrees with Peltz's assessment, noting that Disney's performance has been underwhelming compared to its peers 2.

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 push for a board seat is seen as a reasonable move given his significant investment in the company, yet Disney's board has resisted his involvement 1.

   

Boardroom Dynamics

The dynamics within Disney's boardroom have been strained as they navigate Peltz's demands. Scott Galloway criticizes the board's ego-driven decisions, suggesting that they should welcome Peltz's input rather than resist it 3. He argues that Peltz's history as a constructive activist makes him a valuable addition to the board, capable of providing strategic guidance without overstepping operational boundaries 4.

This is everything he's asked for is reasonable. And my prediction is that the shareholders are going to agree with that viewpoint and tell Bob and the board to just settle it and put them on the board.

--- Scott Galloway

The board's reluctance to include Peltz is seen as a distraction that could waste time and resources, potentially leading to shareholder pressure to resolve the issue 3.