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The Battle Over Disney’s Future Is About To Be Decided In A High Stakes Board Vote

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9 months ago

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This week, a fierce war over Disney’s future will be decided as one of history’s most costly proxy campaigns culminates in a high-stakes shareholder vote on Wednesday.

The issue is Disney’s (DIS) stock price, which has climbed about 50% in the last six months but cannot satisfy the desire of certain investors seeking a larger return. Should activist investors gain a seat on the company’s board, they intend to shake up the Magic Kingdom and its extensive empire, which includes animation, streaming services, and theme parks.

The Battle Over Disney’s Future Is About To Be Decided In A High Stakes Board Vote

Two opposing board seat slates are now up for election against Disney’s. One is in charge thanks to Trian Fund Management, which has put forward its 81-year-old founder, Nelson Peltz, a well-known billionaire corporate raider, and Jay Rasulo, a former Disney CFO. Another minor challenge comes from Blackwells Capital, which is seeking three seats.

The main danger, however, comes from Peltz, whose combination with former Marvel head Ike Perlmutter can bring about significant change at Disney if successful.

Peltz has blasted Disney’s recent theatrical disasters and suggested that the company’s Disney+ streaming service achieve “Netflix-like margins,” among other things. The activist investor and his Trian fund aim to match senior executives’ pay with their performance, restore Disney’s box office dominance, and increase its profit margins. He also wants to ensure that CEO Bob Iger, known for sticking on longer than planned, truly walks down in 2026 at the end of his contract.

However, the strategy is similar to what Iger and his colleagues are already using, and analysts are still determining how Peltz and Rasulo will address the issues.

“I don’t think [Peltz has] offered a turnaround plan that would make people say, yeah, we need to get Peltz in there and change things,” Barton Crockett, senior research analyst at Rosenblatt Securities, told CNN.

What exactly is the point of contention?
In recent years, Disney has suffered a surprising number of box office flops, dwindling viewership on its linear television networks, including ESPN and ABC, and enormous losses as it expands its streaming business to compete with Netflix.

Peltz says he hopes for a turnaround.

“Despite its numerous advantages, Disney has lost its way. Disney lost its movie office dominance, was late to enter the streaming market, and doubled down on linear TV at the wrong time,” Trian stated in a letter to Disney shareholders earlier this month.

What happens on Wednesday?
At 1 p.m. ET, Disney will convene its annual shareholder meeting. During this meeting, shareholders will vote on “slates” of board member positions, including those of Trian and Blackwells. The voting results, which are now underway, will then be announced.

If Peltz is successful, he and Rasulo might gain up to two seats on the board, unseating Disney’s nominees. The pair might influence the company’s trajectory, which some analysts feel could speed Iger’s exit. Iger returned to the leadership role in 2022 after his hand-picked replacement, Bob Chapek, was sacked.

Peltz, who has no entertainment background but has successfully waged proxy wars, has stated in interviews that he wants to collaborate with the current leadership to shake up the media conglomerate.

“We want to ensure that this company finally succeeds. “It’s been mistreated for a long time, and that needs to change,” Peltz said in a proxy combat video on Trian’s website.

The Battle Over Disney’s Future Is About To Be Decided In A High Stakes Board Vote

How is Disney fighting back?
Typically, shareholder meetings and voting are dull exercises that receive little attention from the public.

But Disney is taking the danger seriously. More than $60 million has been thrown into the boardroom struggle, mostly from Disney, which is battling to retain Iger and its board in place.

Disney and its allies claim that the turnaround is already underway under Iger and that the Trian proxy war stems partly from a personal vendetta after Perlmutter was fired from the firm last year.

However, it faces a particular issue in persuading shareholders: Unlike other publicly traded corporations, many investors are “retail investors” — ordinary people who invest in businesses.

These individuals own more than 35% of Disney’s stock, and their votes might have a significant impact. So Disney has treated the campaign like a political campaign, producing a campaign website, removing Google search ads, and advertising on prominent podcasts such as “Smartless.” It even relies on some of its most popular animation characters.

“They’ve really pulled out all the stops in responding to Nelson Peltz and the other activists, and dismissing and attacking them on multiple levels, even going to the place of pulling out Disney intellectual property and calling Peltz a ‘Pinocchio,'” Crockett said in a statement.

Anna and Elsa from “Frozen” have also appeared on materials distributed to shareholders, while the relatively unknown figure Ludwig Von Drake hosted an animated short video explaining how shareholders vote.

“Disney has the right strategy to drive profitable growth and value creation for shareholders and has made substantial progress against our objectives to make our business more efficient and effective, including a sharpened focus on our greatest brand and franchise assets, a continued commitment to cutting costs and a reinstatement of the dividend,” the company said in a statement issued last week urging support for the members of its board of directors.

In addition, Iger and other senior Disney officials have been traveling throughout the country to meet with larger and institutional shareholders, according to a person familiar with the situation.

Disney has also lined up some big names to back its board, including director George Lucas, JPMorgan Chase CEO Jamie Dimon, former Disney CEO Michael Eisner, and billionaire philanthropist Laurene Powell Jobs. Even Disney family members who have been critical of the firm, such as Abigail E. Disney, have come out against Peltz’s boardroom war.

The Battle Over Disney’s Future Is About To Be Decided In A High Stakes Board Vote

“Clearly, Bob Iger and the board have taken this very seriously and put out an amazing amount of material, and they’ve met with investors,” Jessica Reif Ehrlich, managing director of BofA Securities, told CNN. “Nelson Peltz has gone public, so it’s very contentious, very loud, very public.”

Meanwhile, Peltz has recently won backing from the California Public Employees Retirement System (CalPERS) and private investment company Neuberger Berman, undermining Disney’s efforts to avoid a board conflict. The powerful consulting firms Institutional Shareholder Service and Egan-Jones have also endorsed Peltz for at least one seat on the board.

While Disney isn’t taking any chances, some analysts believe that if Peltz wins a seat or two at the table, it might pave the way for Iger to leave the House of Mouse sooner than expected in 2026.

“It’s clear that Iger doesn’t want to deal with him,” Crocket stated about Peltz. “So, I guess the one thing that I would wonder about, not from an operational perspective, but from a leadership perspective, is that if Peltz wins, it might hasten the departure of Iger.”

SOURCE – (CNN)

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Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Sonic the Hedgehog Dominates Christmas Wish Lists

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2 days ago

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2024-12-21

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Sonic the Hedgehog Merchandise are hot Christmas Items

Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.

Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.

Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.

Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.

Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.

Retailers who tap into this trend are sure to see strong holiday sales.

Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.

Sonic the Hedgehog 4

Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.

The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.

The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.

On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.

The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.

They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.

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Amazon Strike Called By Teamsters Union 10,000 Walkout

Published

3 days ago

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2024-12-20

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Teamsters members were demonstrating at "hundreds" of other Amazon locations.

An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.

The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.

According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.

The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.

It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.

Amazon Strike at 10 Locations

Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.

The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.

The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.

Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.

Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.

Stalled Contract Negotiations

Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.

However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.

Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.

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Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.

Published

3 days ago

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2024-12-19

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(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.

The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.

The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”

The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.

Amazon has refused to acknowledge the union for many years.

The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.

Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.

Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.

“Amazon workers are exercising their power,” Randy Korgan stated to NPR.

“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.

Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.

The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.

Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.

The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.

Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.

Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.

Teamsters organize Amazon delivery couriers and other employees.

In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.

The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.

In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.

“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”

The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.

SOURCE: NPR

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