Disney Picks-Up Support from Key Shareholder

Walt Disney Co. won the support of a key shareholder in its fight with activist investor Nelson Peltz over the direction of the company and is confronting a third shareholder jockeying for influence.

The Wall Street Journal reports the entertainment giant said it reached a deal with ValueAct under which the activist would back the company’s board nominees at the coming 2024 shareholder meeting and Disney would share information and meet with the investor. Disney’s pact with ValueAct could help inoculate it from the pressure of Peltz’s demands for board seats in a contentious proxy season.

On Wednesday, another shareholder, Blackwells Capital, said it plans to nominate three directors at Disney’s shareholder meeting that will support Chief Executive Bob Iger “constructively, and complement the board.” Blackwells said Peltz’s Trian Fund Management should end its campaign.

Since coming back as Disney CEO in late 2022, Iger has worked to chart Disney’s future, identifying streaming, theme parks and cruises, studios and the ESPN sports network as core areas of focus. The company’s share price has hovered near 10-year lows and some shareholders, including Trian, feel the company’s progress has been too slow.

With Peltz’s campaign under way, the Blackwells plan afoot and the new ValueAct deal, battle lines are emerging ahead of Disney’s shareholder meeting.