Disney: Can Activist Shareholders Be Trusted On The Board


  • Activist shareholders are generally not a friend of retail long-term investors.
  • The Trian proposal appears to be enough an exception.
  • There is a risk that putting a Trian representative on board allows that person a full term without a potential recall provision.
  • Bob Chapek as CEO had a lot more challenges because of the covid situation right after he became CEO.
  • Disney stumbled badly with the CEO succession and therefore needs to prove they can find someone who can continue to run the company well with a successful transition.

Stock Markets Rebound On Day After Major Sell Off

Drew Angerer

I have long had a distrust of activists because they often leave companies in worst shape then they found them to the disadvantage of long-term shareholders. That distrust heightened when the fight was over due to the

Disclosure: I/we have a beneficial long position in the shares of DIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

I analyze oil and gas companies, related companies and Disney in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies — the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

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