With Nelson Peltz Looming, Disney and ValueAct Capital Agree To Strategic Consultation Deal
Ahead of The Walt Disney Company’s 2024 Annual Meeting, the company has announced a new information-sharing agreement with ValueAct Capital that will see the firm support Disney’s upcoming board of directors slate.
The confidentiality agreement will allow Disney to provide information to the investment firm and consult with ValueAct on strategic matters.
“ValueAct Capital has a track record of collaboration and cooperation with the companies it invests in, and its Co-CEO Mason Morfit has been very constructive in the conversations we’ve had over the past year. We welcome their input as long-term shareholders,” said Robert A. Iger, Disney’s Chief Executive Officer.
ValueAct Has Experience Helping Media and Technology Companies
ValueAct has previously invested in other media and technology companies, including Spotify, The New York Times, 21st Century Fox, Nintendo, and also Microsoft.
“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.
An Ally Against Nelson Peltz?
The latest maneuver by Disney will help solidify the company against activist investor Nelson Peltz and his Trian Management.
Buoyed by more than $2 billion in Disney stock that belongs to former President of Marvel Ike Perlmutter, Peltz has launched a proxy battle in a bid to get a seat for himself and former Disney executive Jay Rasulo on the board.
With ValueAct now firmly aligned with the board, there is no doubt that Bob Iger and Disney are in a more secure position.
Whether or not the latest maneuvering is enough to get Peltz to end his proxy battle, however, remains to be seen.