Disney Secures Support from Activist Investors in Boardroom Battle

In a boardroom showdown at Walt Disney Co, activist hedge funds ValueAct Capital and Blackwells Capital have thrown their weight behind the entertainment giant, countering a challenge from Trian Fund Management. This development accentuates the high stakes for Disney as it navigates a turnaround under CEO Bob Iger. Disney announced a partnership with ValueAct to provide strategic counsel and endorse its director nominees at the upcoming shareholder meeting. Additionally, Blackwells revealed its nomination of three directors who align with Disney's current strategy. CEO Bob Iger expressed positivity about the collaboration with ValueAct, highlighting the fund's history of cooperation with its investees. Meanwhile, Disney assured a thorough review of Blackwells’ nominees by its governance and nominating committee. Concurrently, Trian, led by Nelson Peltz, advocated for operational streamlining, a succession plan, and streamlining Disney's streaming operations. They stressed the need for independent voices on Disney's board to address its long-standing underperformance. ValueAct, which has a long-standing relationship with Disney, sees potential for the company's stock to double. Disney's stock price remained stable at $90.60 following these developments. Disney had already reshaped its board in November, appointing industry veterans James Gorman and Jeremy Darroch as directors in an effort to preempt the boardroom tussle.