Activist pressure will get them on track

Article Excerpt

These two entertainment firms have struggled lately despite the lifting of COVID-19 restrictions and the reopening of their theme parks. Those struggles have prompted activist investors to demand changes at both companies. Still, we believe Disney, with its greater array of businesses and entertainment content, is currently the better pick for your new buying. WALT DISNEY CO. $99 is a buy. The company (New York symbol DIS; Consumer sector; Shares outstanding: 1.8 billion; Market cap: $178.2 billion; Dividend suspended in May 2020; Takeover Target Rating: Medium; is an entertainment and media conglomerate headquartered in Burbank, California. It’s also the world’s largest theme-park operator. Through the stock, investors tap Disney’s extensive portfolio of entertainment properties and brands. It monetizes them through film and TV production, distribution, merchandising, theme-park attractions, as well as cable and streaming subscriptions. Activist investor Nelson Peltz, through Trian Fund Management, now owns 0.5% of Disney’s shares. He plans to launch a proxy fight to become a director after the company denied him a..