Iger: Peltz Proxy Battle was a 'Distraction,' Board is Focused on Choosing My Successor

• Disney CEO Bob Iger characterized Nelson Peltz's proxy battle with the company as a "distraction."
• Iger stated that the company's board is concentrating on achieving profitability through streaming and succession planning.
• Iger did not have any personal vendetta against Peltz, but Peltz wanted to ensure the company had a leadership plan in place.

On CNBC's "Squawk on the Street" on Thursday, CEO Bob Iger stated that Nelson Peltz's proxy battle was a "distraction" and now the company can focus on turning a streaming profit and planning succession, just one day after handing a stinging defeat to the activist investor.

He expressed satisfaction that he could focus solely on executing priorities with the management team and board, despite the victory.

Despite Peltz's second proxy attempt, Iger stated that Disney's initiatives to increase shares and its strategy for succession, business investments, and content shift remained unchanged.

Disney's board has made choosing Iger's successor their top priority, with plans for more meetings in 2024. Iger stated that the activism has not affected Disney's succession process, and his contract runs until 2026.

Iger candidly discussed the difficulties that Chapek encountered while leading the company from 2020 to 2022, including the halt of film and TV production, theme park closures, and the cancellation of live sporting events.

"Clearly, we all acquire knowledge from past experiences and are ready for this procedure to be successful," Iger stated.

In an interview with CNBC on Thursday, Peltz stated that he had no personal vendetta against Iger and was solely focused on ensuring the company had a solid leadership plan in place.

"The only problem I had with Bob was the succession plan, which was the board's fault," he stated.

Iger refuted the assertion that Peltz's activism was the cause of recent stock increases, a claim made by the investor himself.

"Iger stated that the market was not responding significantly to the activist's performance, but rather to how the company was performing."

Disney's shares have increased by 32% this year. The stock price surged in February following the company's earnings call, where it announced several major developments, including acquiring the exclusive streaming rights to Taylor Swift's Eras Tour concert film, making a $1.5 billion strategic investment in Epic Games, and launching a flagship ESPN streaming service.

Disney has been fighting against Peltz's Trian Fund Management for months, with Peltz publicly criticizing Disney for its poor share performance, unsuccessful succession plan, and what he claimed were billions of misdirected investments.

If Iger carries out his plans to enhance Disney's performance, Peltz will not attempt to engage in another battle against the company.

"Peltz said Thursday, "I hope Bob can fulfill his promises. I hope they will deliver on all the promises they made. I'll monitor their progress. If they succeed, I won't contact them again.""

During Wednesday's investor meeting, Disney received support from shareholders, with Peltz losing his board seat race to Lagomasino by a 2-to-1 margin and Rasulo losing to Lagomasino by a 5-to-1 margin. Retail voters also supported Disney, helping Iger receive 94% of the overall vote.

Another activist, Blackwells, also failed to win board seats in its own long shot bid. The percentage-wise turnout for the director vote was in the mid-60s, according to a person familiar with the matter. In 2023, around 63% of Disney shareholders voted.

Since returning to Disney in late 2022, Iger has made efforts to fix the company's problems. He reversed a new corporate structure put in place by Chapek and reduced the number of film and television projects being produced. Last year, Iger announced a plan to invest $60 billion in Disney's theme park, cruise, and experience business over the next decade.

Disney+ will soon offer a new bundled sports service in collaboration with Warner Bros. Discovery and Fox, along with a standalone ESPN service that can be accessed directly through the platform.

Iger stated that the goal is to cater to sports fans in various ways through the two products, without anticipating significant competition between them.

ESPN's flagship service will have significantly more content than the joint venture's ESPN component, but Iger did not disclose any further details about the joint venture, such as its name or pricing.