Statement From The Walt Disney Company
November 30 2023 - 11:31AM
Business Wire
The Walt Disney Company (NYSE: DIS) issued the following
statement today in response to the statement released by Nelson
Peltz, founding partner of Trian, relating to Disney and its Board
of Directors:
The Walt Disney Company has a proven track record of delivering
long-term value to our shareholders and is in the midst of a
significant transformation to reinforce our position as the world’s
preeminent entertainment company. Over the past twelve months, we
restructured the company to restore creativity to the center of all
our businesses as we significantly reduce costs and drive
efficiencies, and we are on track to achieve about $7.5 billion in
cost savings – $2 billion more than our original target.
Disney is moving from a period of fixing to a new era of
building, as the entire media sector navigates the crosscurrents of
the competitive landscape for streaming. We are executing on four
key building opportunities that will be central to our success:
achieving significant and sustained profitability in our streaming
business; building ESPN into the preeminent digital sports
platform; improving the output and economics of our film studios;
and turbocharging growth in our Experiences business. Our
extraordinary portfolio of businesses, brands and assets—and the
key synergies between them—are the foundation to developing the
popular franchises that will continue to drive our strategic
success. With one of the strongest balance sheets in the media
sector, Disney expects free cash flow to approach pre-COVID levels
in fiscal 2024, and the Board and management are steadfast in our
commitment to ensuring The Walt Disney Company’s long-term success
for the benefit of all our shareholders.
Disney also continues to refresh its Board of Directors,
including the appointments of James P. Gorman, Chairman and Chief
Executive Officer of Morgan Stanley, and Sir Jeremy Darroch, a
veteran media executive and former Group Chief Executive of Sky, as
new directors, as the result of a lengthy and comprehensive search
that began in April of this year. Their appointments reflect
Disney’s commitment to a strong board focused on the long-term
performance of the company, strategic growth initiatives, the
succession planning process, and increasing shareholder value. As
also announced yesterday, Disney board member Francis A. deSouza
has decided not to stand for reelection at the annual meeting.
Mr. Peltz, in partnership with Isaac Perlmutter, a former Disney
executive, intends to take its case to shareholders. Mr. Perlmutter
owns 78% of the shares that Mr. Peltz claims beneficial ownership
of, or more than 25 million of the 33 million shares. This dynamic
is relevant to assessing Mr. Peltz and any other nominees he may
put forth as directors, as Mr. Perlmutter was terminated from his
employment by Disney earlier this year and has voiced his
longstanding personal agenda against Disney’s CEO, Robert A. Iger,
which may be different than that of all other shareholders.
The Disney Board will recommend to shareholders its slate of
director nominees in the company's proxy statement to be filed with
the Securities and Exchange Commission and distributed to all
shareholders eligible to vote at the annual meeting.
Disney shareholders are not required to take any action at this
time.
Forward-Looking Statements
Certain statements in this communication may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding the Company’s expectations, beliefs, plans, and
continuation of commitments and focus; expected growth and drivers
of performance or growth; our business or financial prospects,
trends or outlook; business plans or opportunities; future
performance and growth; organizational structure and leadership
decisions; plans or expectations for direct-to-consumer
profitability, product acceptance and enhancements and subscription
offerings; consumer behavior or demand; cost reductions and
efficiencies; strategies and strategic priorities and
opportunities; value of our intellectual property, content
offerings, businesses and assets, including franchises and brands;
future free cash flow; and other statements that are not historical
in nature. These statements are made on the basis of management’s
views and assumptions regarding future events and business
performance as of the time the statements are made. Management does
not undertake any obligation to update these statements.
Actual results may differ materially from those expressed or
implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives or other
business decisions, as well as from developments beyond the
Company’s control, including: the occurrence of subsequent events;
further deterioration in domestic or global economic conditions or
failure of conditions to improve as anticipated; deterioration or
pressures from competitive conditions, including competition to
create or acquire content, competition for talent and competition
for advertising revenue; consumer preferences and acceptance of our
content, offerings, pricing model and price increases, and
corresponding subscriber additions and churn, and the market for
advertising sales on our direct-to-consumer services and linear
networks; health concerns and their impact on our businesses and
productions; international, political or military developments;
regulatory or legal developments; technological developments; labor
markets and activities, including work stoppages; adverse weather
conditions or natural disasters; and availability of content. Such
developments may further affect entertainment, travel and leisure
businesses generally and may, among other things, affect (or
further affect, as applicable): our operations, business plans or
profitability, including direct-to-consumer profitability; our
expected benefits of the composition of the Board; demand for our
products and services; the performance of the Company’s content;
our ability to create or obtain desirable content at or under the
value we assign the content; the advertising market for
programming; income tax expense; and performance of some or all
Company businesses either directly or through their impact on those
who distribute our products.
Additional factors are set forth in the Company’s Annual Report
on Form 10-K for the year ended September 30, 2023 under the
captions “Risk Factors,” “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” and “Business,” and
subsequent filings with the Securities and Exchange Commission,
including, among others, quarterly reports on Form 10-Q.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231130160718/en/
David Jefferson Corporate Communications
David.J.Jefferson@disney.com 818-560-4832
Mike Long Corporate Communications Mike.P.Long@disney.com
818-560-4588
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Walt Disney (NYSE:DIS)
Historical Stock Chart
From Aug 2023 to Aug 2024