Activist investor Blackwells Capital has proposed an innovative solution to Walt Disney Co. and its CEO Bob Iger in order to boost sales. The suggestion is to split the company into three separate entities, each with a specific focus on sports, entertainment, and resorts.
This idea comes as Blackwells Capital believes that Disney may be too complex for any one successor to Mr. Iger to manage holistically. The investment firm believes it is the Board's responsibility to oversee this analysis and make appropriate decisions.
In its proxy statement for Disney's annual meeting on April 3, Blackwells Capital also suggests that Disney should separate its owned real estate, which represents about 44% of its market cap, into an independent publicly listed REIT or a series of investment vehicles. This would provide shareholders with the opportunity to receive shares, cash, and/or interests in these entities.
Disney is currently engaged in a three-way battle over its 12-member board of directors. While Disney has proposed twelve candidates, Blackwells Capital is urging Disney shareholders to vote for its own three candidates instead of Disney's or Trian Partners' Nelson Peltz and Jay Rasulo, a former Disney CFO.
The main objective of Blackwells Capital's campaign is to ensure that Disney has the right collection of minds around the boardroom table. The goal is for these individuals to work constructively together and make decisions that will benefit all shareholders in the long term.
At the time of writing, Disney was not available for additional comments.