The Walt Disney Company Board of Directors has sent out a new letter to shareholders detailing the “progress it has made and continues to make […], delivering on the promises it made just over one year ago.”
Disney Sends New Letter to Shareholders
This letter comes following a video from Blackwells Capital, who is campaigning for three seats on the Disney board, which stated that Disney should embrace the use of AI to bring its characters to life and create new Disney Parks features.
In a press release, Disney shared that “The Board has been laser-focused on a strategy that will drive shareholder value.”
The company has restored its cash divident and subsequently increased the dividend payment declared for July 2024 by 50%. Disney is also targeting $3 billion in share buybacks for FY24. As shared in its first quarter earnings, the Company has also made great strides in reigning in costs and is on track to meet or exceed its cost cutting target of $7.5 billion by the end of FY24. Disney also reaffirmed it is on track to deliver $8 billion in free cash flow, and to reach profitability in its combined DTC streaming businesses in Q4 FY24. Disney’s creative engines continue to be recognized with numerous nominations across the TV and film industry.
The release goes on to affirm Disney’s belief in its 12 board nominees, stating that they are “uniquely qualified” to continue the company’s progress and goal of long-term shareholder value. In bolded text, the release also states:
The Board urges shareholders to protect their investment and the future of the Company by voting the WHITE proxy card FOR only Disney’s 12 nominees NOW and not the Trian Group or Blackwells nominees. The 2024 Annual Meeting of Shareholders will be held on April 3, 2024.
Before including screenshots of the letter to shareholders, Disney’s press release closes out by saying that the Disney Board does not endorse nominees put forward by Trian Group or Blackwells Capital, stating that they are “unqualified to serve on Disney’s Board and preserve value creation for shareholders in this increasingly complex global landscape.”
This is Disney’s latest attempt to urge shareholders away from voting for Trian Group and Blackwells board nominees; previously, the company released a video on “how to vote” featuring Professor Ludwig Von Drake, and a video from CEO Bob Iger himself.
Blackwells Capital’s nominees are former Warner Bros. and NBCUniversal executive Jessica Schell, Tribeca Film Festival co-founder Craig Hatkoff, and TaskRabbit founder Leah Solivan. Trian Group has nominated their CEO Nelson Peltz and former Disney CFO Jay Rasulo.
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