An activist investor blasted Walt Disney Co. on Monday for its âmediocrityâ on artificial intelligence and augmented reality and continued a campaign for seats on the media giantâs board of directors.
Blackwells Capital said that Disney
DIS,
faces âsignificant technological issuesâ that put it behind peers, advocating that the company establish a single chief technology officer to oversee tech efforts across all its sectors.
See also: Disney activist Blackwells proposes splitting up company in proxy fight
Currently, Disney has one CTO who oversees entertainment efforts and one who oversees parks, experiences and products, Blackwells noted. âEliminating technological fragmentation is a necessary first step,â the investor said in a presentation Monday, asserting that the current CTOs are âburied under a corporate bureaucracy.â
Disney didnât immediately respond to a MarketWatch request for comment about the Blackwells presentation.
Netflix Inc.
NFLX,
has a CTO within its C-suite, according to the presentation, while Amazon.com Inc.
AMZN,
has one outside the C-suite but who covers all business segments. Apple Inc.
AAPL,
has various senior vice presidents of technological areas within its C-suite.
While Chief Executive Bob Iger is contracted to stay on at Disney through 2026, Blackwells thinks the next CEO âmust have ⦠roots in technology.â
See also: Activist investor Trian assails Disney moves as âspaghetti-against-the-wall planâ
Disney has opportunities to more fully take advantage of AI and spatial computing, which includes augmented reality, according to the presentation. With AI, Disney could better manage crowds, and with spatial computing, it could enhance the parks experience with offerings like âa 3-D lightsaber spar with a Jedi on Tatooine,â the investors say.
Blackwells is in the midst of a proxy battle to win seats on Disneyâs board. The activist investorâs criticism of Disneyâs overall technological position fits with its call to have an independent tech expert on the board, something Blackwells deems âa must-have, not just a nice-to-have.â
The presentation also criticized Disney for âunderspend[ing]â on research and development relative to other media players.
Disneyâs annual meeting will take place April 3.
