Nelson Peltz sells entire Disney stake for $1 billion after boardroom defeat

Hedge fund billionaire Nelson Peltz sold his whole Disney share after his attempt to reorganise the board was decisively rejected, according to CNBC sources.

The father of actor Nicola Peltz-Beckham, who is married to Brooklyn Beckham, reportedly made over $1 billion from the sale of his shares, which he sold at "nearly $120 dollars a share."

The price of his shares suggests that he made the sell during a shareholder meeting in April where he was unable to seize control of the company's board.

Peltz himself was recommended by Hedgefund Trian Partners, which he funds, to be a board member. However, at the annual meeting on April 3, other shareholders decisively opposed their plan.

The vote was prompted by Peltz's allegations that the board had not done enough due diligence in its CEO succession plans by failing to investigate Bob Chapek, the former head of the parks department and current CEO Bob Iger's favorite to succeed him in 2020.

After Chapek was fired in November 2022, Iger was reinstated as CEO. Peltz said after the vote last month to keep criticising the board if it didn't meet his expectations.

“I hope this is not a redo of last year where we pulled out, gave management a chance and the stock went down,” he told CNBC.

“Whether we stay [invested in Disney] or not, we don’t make those kinds of announcements,” he added.

According to CNBC, Peltz's Trian Partners sought the removal of Maria Elena Lagomasino and Michael Froman, two directors, on the grounds of persistent share underperformance.

Nevertheless, it was said that Lagomasino defeated Peltz 2-to-1, and all of the company's nominees for the board were re-elected.

As an activist investor, Peltz—the father-in-law of Brooklyn Beckham, invests in businesses that are deemed undervalued and then pushes for internal changes.

(With inputs from agencies)