Walt Disney Company ( DIS ) gains traction in a proxy battle against Trian Partners as major investors back the entertainment giant. 

BlackRock Inc ( BLK ) , Disney’s second-largest shareholder, with approximately 78 million shares, supports Disney in the battle for board seats. T. Rowe Price, holding around 9.3 million Disney shares, also pledges its support.

The support from major investors like BlackRock ( BLK ) and T. Rowe Price is seen as a significant win for Disney CEO Bob Iger amidst efforts to resist Trian’s push for board representation amid a crucial turnaround phase.

Despite Disney’s current lead in the proxy battle, the outcome remains uncertain as shareholders continue to cast votes ahead of the annual meeting on Wednesday, the Wall Street Journal reported.

Trian Partners, led by Nelson Peltz, seeks board seats for Peltz and former Disney CFO Jay Rasulo, claiming Disney’s board needs restructuring for better shareholder returns and succession planning.

The proxy battle between Disney and Trian is anticipated to become the most expensive in history, with millions spent by both sides to sway shareholder votes.

Iger and Disney’s team argue that Peltz’s inclusion on the board would disrupt operations, while Trian contends that Disney’s board has failed to deliver adequate returns and needs restructuring.

Trian, with about 32.3 million shares, collaborates with former Marvel chairman Ike Perlmutter, owning significant Disney shares, in its push for board seats.

The battle garners attention as major shareholder-advisory firms split their recommendations, adding to the uncertainty surrounding the outcome.

Disney receives support from prominent figures like George Lucas and Laurene Powell Jobs, while the outcome heavily depends on a handful of large institutional investors like Vanguard, BlackRock ( BLK ), and State Street Corporation ( STT ) (NTSE: STT).

Price Action: DIS shares are down 1.54% at $119.66 during the premarket session on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.