In a major development, activist investor Nelson Peltz has sold his entire stake in Disney at a price of around $120 per share, yielding a return of approximately $1 billion, according to a source familiar with the matter. This news comes after Disney successfully defended against Peltz's attempt to secure board seats at the company, bringing an end to a highly contested proxy battle that has plagued the entertainment giant for months.

Peltz had been fighting to secure board seats for himself and former Disney CFO Jay Rasulo, but their efforts were ultimately unsuccessful. At the company's annual shareholder meeting held in early April, Disney announced that the current board would remain intact following a stockholder vote that favored the company's slate by a substantial margin.

The investor's hedge fund, Trian Fund Management, held $3 billion of common stock in Disney, including shares owned by former Marvel Entertainment chair Ike Perlmutter. Peltz had reignited his push to shake up Disney's board last year when the stock price hit multiyear lows.

Despite the outcome of the proxy battle, Peltz stated during the shareholder meeting that Trian would closely monitor the company's performance. Disney shares have seen a 12% increase since the beginning of the year, but have fallen roughly 15% since Peltz's defeat.

Disney has not yet commented on Peltz's decision to sell his stake. The company's successful defense against the activist investor's board seat aspirations suggests confidence in the current board's strategic direction and ability to navigate the challenges faced by the entertainment industry.

It remains to be seen how Peltz's exit will impact Disney going forward. Nevertheless, this development marks a significant turning point in the proxy battle that engulfed the company, allowing Disney to focus on its upcoming projects and initiatives without the distraction of a boardroom struggle.