Disney Slams Activist Peltz's 'All-Black Cast' Critique: 'This is Exactly Why He Shouldn't Be Near A Creatively Driven Company'
Portfolio Pulse from Nabaparna Bhattacharya
Walt Disney Company (NYSE:DIS) has responded to activist investor Nelson Peltz's criticism of its focus on diversity in films, stating his views make him unfit for Disney's board. Peltz, in a battle for board seats via his Trian Partners fund, criticized Disney's emphasis on films with female and Black leads, specifically mentioning 'The Marvels' and 'Black Panther'. Disney defended its creative direction, highlighting the success of Marvel Studios. The dispute comes as Disney's annual meeting approaches, with Peltz seeking board seats. Disney stock has risen over 20% in the past year, with exposure available through ETFs like AdvisorShares Gerber Kawasaki ETF (NYSE:GK) and First Trust S-Network Streaming And Gaming ETF (NYSE:BNGE).
March 23, 2024 | 5:46 pm
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POSITIVE IMPACT
First Trust S-Network Streaming And Gaming ETF, with exposure to Disney, may be influenced by Disney's dispute with Nelson Peltz and its emphasis on diversity in its film lineup.
BNGE, by offering exposure to Disney, could benefit from the positive investor sentiment towards Disney's defense of its diversity policies and creative successes. The ongoing board battle and Disney's clear stance may reinforce confidence in Disney's leadership and creative vision.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Disney defends its focus on diversity against Nelson Peltz's criticism, amidst a contentious board battle. The company's stock has gained over 20% in the past year.
Disney's strong defense against Peltz's criticism and the public backing of its diversity initiatives could bolster investor confidence, potentially positively impacting its stock in the short term. The company's success, particularly in the Marvel franchise, and the stock's past performance suggest continued investor support.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
AdvisorShares Gerber Kawasaki ETF, which offers exposure to Disney stock, could see an impact from the ongoing board battle and Disney's defense of its diversity-focused creative direction.
Given GK's exposure to Disney, the ETF could experience positive movement as investors react to Disney's strong stance on diversity and its successful track record, which may be seen as a reaffirmation of the company's growth strategy and creative direction.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70