Activist investment firm ValueAct Capital strikes a deal with Disney (DIS) to share strategy plans amid a proxy battle with Trian Fund Management CEO Nelson Peltz, who has nominated himself among other candidates for Disney's board. Simultaneously, Blackwells Capital nominated three potential directors for the board.

Yahoo Finance Live discusses the challenges Disney CEO Bob Iger may face while juggling responsibilities with Peltz's proxy battle.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

MYLES UDLAND: All right, let's take a look at Disney shares. Stock is up slightly in premarket trade after activist investor ValueAct-- stock is down 2/10 of 1%. ValueAct and Disney reaching a deal that will see Disney and the investor's share information, so that ValueAct can consult the company on strategic matters.

Now, ValueAct is also pledging to support Disney's slate of directors at its shareholder meeting later this year. The deal comes as Disney continues to fight off a proxy battle with Nelson Peltz, who has nominated his own slate of directors to the board. He also has the support of former Marvel chair Ike Perlmutter, one of the company's largest outside shareholders.

Now, at the same time Reuters also reporting on Wednesday that Blackwells Capital has nominated three directors to Disney's board. Now, we do have a problem with scale here. Blackwells owns about $5 million worth of Disney stock. Peltz owns closer to $4 billion worth of Disney shares. ValueAct's stake in the company remains undisclosed, according to "The Wall Street Journal".

One can imagine, though, Seana, given that they have reached this detente with Disney that the stake is sizable enough, that ValueAct putting their weight behind Disney's slate of directors is enough to matter here. But I think it shows, I guess, the seriousness really, of the fight that Bob Iger has on his hands, that he's calling in an ally. ValueAct now is going to help Disney do the legwork among its investor base to make sure that it keeps its plan, the director slate intact as we get towards this crucial shareholder meeting later this year.

SEANA SMITH: Yeah, I think this just shows how much pressure Bob Iger is under right now. We know Nelson Peltz, this is his second time he's targeted Iger since he has been back as CEO of the company. They're pushing to make some changes. Obviously, wants to cut costs here. Compensation changes going on just a bit in terms of what they want to see governance succession issues, just among the list that Nelson Peltz and his team want to see changed at Disney.

The fact that they are calling in the help of others like ValueAct is really just the latest twist of this ongoing saga that we have been covering now for over a year. Whether or not they are able to successfully fend off Peltz and please him here for the second time, that is a big question that investors are facing right now.

Clearly, Disney is up against a number of challenges since Iger has returned. They need to figure out how to stem their losses in the streaming business. They need to figure out how to boost their parks business more going forward a number of the changes or a number of the issues that Iger himself has outlined during the last several earnings calls.

So how quickly he can act and how quickly he can get investor shareholders back on board is the question that I think many on the Street are asking themselves right now.

MYLES UDLAND: Yeah, I mean, I think in Iger's view, he's come out. He's done quite a lot on the cost cutting side. He's done a lot on the cost cutting side. And I think there's a certain level at which you as the CEO are sitting there, like, OK, but now we need to run the business. You know, I've cut out-- what? It's going to be $7 billion in costs, I think, over the next couple of years.

But there's still-- it still takes a lot of money to put on the college football playoff, to put these movies out, and I think there's a level at which you as the CEO are trying to find a way to say, all right, enough, enough. Let me run the business.

And I think obviously, look at the read through on today's news, ValueAct appears to be the investor that will get on board with Iger's plans as they go forward here.

SEANA SMITH: Certainly, a story that we will continue to track here at Yahoo Finance. Again, shares of Disney now under just a bit of pressure in the pre-market.