The battle for a seat on entertainment giant Disney’s (NYSE:DIS) Board is expected to be the costliest shareholder contest ever, the Wall Street Journal reported. According to the report, Activist hedge funds, including Trian Fund Management led by Nelson Peltz and Blackwells Capital, alongside Disney itself, are projected to collectively spend over $70 million in preparation for the shareholder vote scheduled for April 3.
These parties are spending money on marketing materials, extensive social media campaigns, and hiring proxy solicitors to obtain shareholder support for the board candidates they represent.
Here’s Why They Are Spending Millions
The main reason behind the substantial expenditure by these parties is that a large number of individual investors own Disney stock. Their collective ownership represents over a third of Disney’s stock. Moreover, institutional investors such as BlackRock and Vanguard hold…
