Elon Musk, CEO of Tesla and owner of X (formerly Twitter), announced his intention to buy Disney (DIS) shares if activist investor Nelson Peltz secures a seat on the media and entertainment giant’s board. Musk endorsed Peltz’s potential influence on Disney’s board, stating on Wednesday,
“Nelson Peltz would undoubtedly bring valuable contributions to the Disney board! His expertise could drive reform, enhance product quality, and ultimately benefit shareholders, mirroring his successful track record at numerous other companies.” conveyed via the X platform. Musk further remarked, “This would significantly improve Disney’s share price.”
Musk’s comments followed a post by American hedge fund manager Bill Ackman on X, raising concerns about alleged leaks to the media regarding Disney’s proxy contest results against Nelson Peltz. Ackman emphasized the impropriety of such leaks, suggesting they could unfairly sway the voting outcome.
According to Reuters, on Tuesday, Disney reportedly secured sufficient shareholder backing to fend off a board challenge from Peltz’s Trian Fund Management. The vote count purportedly indicated Disney’s board members maintaining a significant lead over Trian’s nominees, which included Peltz and former Disney CFO Jay Rasulo.
In response to the swirling rumors, Ackman encouraged Disney (DIS) shareholders to support Peltz’s election to the board. He warned against the potential manipulation of shareholder behavior through premature leaks of election results, which could benefit the current board.
“Given my understanding of Nelson’s abilities and the underhanded tactics employed by the company and its advisors, I highly recommend that shareholders vote for Nelson Peltz for the Disney board,” Ackman asserted.