Disney’s defense: Securing ValueAct backing for board nominees
The fight over the Disney Board of Directors has increased a notch as Disney is trying to foil activist investor Nelson Peltz and his Trian Fund, a critic of the Disney CEO Bob Iger, from gaining two seats on the board.
Peltz launched his battle after saying the company has underperformed for an extended period of time, one reason is because the board is too aligned with Iger. He is seeking two board seats and has nominated himself and former Disney CFO James Rasulo
To fend off Peltz, Iger has made a deal with activist hedge fund Blackwells Capital to nominate three directors to the board in support of Iger. Blackwells will nominate Jessica Schell, a former WarnerBrothers executive with expertise in content distribution; Tribeca Film Festival co-founder Craig Hatkoff; and Leah Solivan, who founded and headed TaskRabbit, according to SeekingAlpha.com.
Today, Disney also announced that it and ValueAct Capital Management, L.P. have entered into a confidentiality agreement that enables the company to provide information to the investment firm and consult with ValueAct on strategic matters, including through meetings with the Disney Board and management.
ValueAct has extensive experience investing in media and technology companies navigating significant business transformations, including Spotify, The New York Times, 21st Century Fox, Nintendo, Microsoft, Adobe and Salesforce.
ValueAct has confirmed it will support the Disney Board of Directors’ recommended slate of nominees for election to the Board at the 2024 Annual Meeting. The meeting is scheduled for
“Disney is the world’s leading entertainment company. It has the best intellectual property, sports brand and parks & experiences assets in the industry. As legacy technologies transition to digital platforms, we believe Disney can lead the media industry forward. We could not be more excited to partner with Bob and the Board to help create long-term sustainable shareholder value,” said Mason Morfit, ValueAct Capital Co-CEO and Chief Investment Officer.
The meeting is expected to take place sometime in February.
