Disney for Dummies: The Succession-esque story behind the scenes of the "wayward" studio

Steamboat Willie in the public domain is far from Disney’s only drama. The company appears to be at an inflection point; after reigning supreme for years with the help of Marvel movie dominance, the crown is finally starting to slip. For the first year since 2015, Disney failed to lead the global box office in 2023, per Variety. And behind the scenes, Big Rich Guys are battling it out for the opportunity to steer the ship in a new direction.

It was already obvious that 2023 was a disappointing year for Disney, but the postgame numbers make it all the more clear. The studio didn’t have an entry in the top three films of the year (Barbie from Warner Bros., The Super Mario Bros. Movie and Oppenheimer from Universal), and it didn’t have a single film cross the $1 billion benchmark for the first time in almost a decade (barring the pandemic years of 2020/2021, per Variety). Though the studio still made a boatload of money, it put out ultra-expensive films that largely underperformed (Ant-Man And The Wasp: Quantumania, The Marvels, Haunted Mansion, etc.).

Marvel is having its own nervous C-suite conversations about how to recapture its past glory, but a level above, Disney’s investors are beginning to battle it out to shape the future of the company. While it seems there’s still confidence in the once and future king Robert Iger as CEO, a group of activist hedge funds are vying for more power on Disney’s board, according to Axios. This is a Rich Guy rabbit hole that would work well as a plot on Succession, so buckle up!

Trian, an investment firm that Axios describes as having “the largest activist stake in the company,” is seeking to nominate two members to Disney’s board, including co-founder Nelson Peltz (see: Chairman of fast food chain Wendy’s, billionaire father of Nicola Peltz-Beckham). In a statement, the hedge fund said it “can no longer sit idly by as the incumbent directors and their hand-picked replacements stand in the way of necessary change,” adding that “Disney has woefully underperformed its peers and its potential” (via Reuters). Trian is backed by investment management firm Ancora, which said in a letter (via Axios) that “A degree of shareholder-driven change is certainly warranted in Disney’s boardroom following an extended period of absentminded governance, ineffective succession planning, polarizing actions and sustained value destruction.”

But Trian’s nominations are opposed by Blackwells Capital, which happens to be fighting it out with Peltz and Trian for control of the board over at Wendy’s. Blackwells wants to nominate three people to Disney’s board, and accused Peltz of “peacocking” in its own scathing statement, saying Peltz nominating himself was “driven by animus against Mr. Iger, and an ego-driven urge to claim credit for a transformation already underway.” Further, Blackwells accused Ancora of shady business dealings and called on the Disney Board to “investigate Trian’s relationship with Ancora and other shareholders.”

Meanwhile, Disney released a statement confirming a new confidentiality agreement with ValueAct Capital which “enables the company to provide information to the investment firm and consult with ValueAct on strategic matters,” presumably in exchange for ValueAct’s support of current leadership. In response, a Trian spokesperson told Axios, “Trian welcomes other shareholders attempting to help fix this iconic but wayward company.”

Basically, it seems like the one thing everyone can agree on is that Disney is in some trouble, though it’s unclear how any of these Big Rich Guys plan on getting the company back on track. One might think that an entertainment media company should be driven by clear-eyed creative pursuits first, but we all know the world is run by hedge fund managers making financial speculations. It remains to be seen whether any of these boardroom battles will put Disney back on top, but the company might want to consider getting Jesse Armstrong to dramatize the situation—catty businesspeople strategizing against each other, at least, has a proven track record of success.