Disney (DIS) has reached a deal with activist investor ValueAct Capital in which the company will share information with the firm. In exchange, ValueAct will back Disney's board at the 2024 investor meeting. Meanwhile, Blackwells Capital said it would nominate three members to Disney's board that will support CEO Bob Iger "constructively, and complement the Board." It also called on fellow activist Nelson Peltz of Trian to end his campaign, saying his "latest effort is driven by animus against Mr. Iger, and an ego-driven urge to claim credit for a transformation already underway."
The Wall Street Journal Deputy Media Editor Jessica Toonkel says given the actions by other activists, it was "a bad day" for Peltz. "I don't know where this is going to go for Nelson Peltz. It doesn't seem like it's boding well for their campaign."
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
- Disney securing some major support in its ongoing proxy battle with Nelson Peltz. The media giant securing the support of activist hedge fund ValueAct for its board nominees. Separately, Blackwells Capital will nominate three directors of its own two Disney's board who side with CEO Bob Iger's current strategy.
Joining us now, Jessica Toonkel, deputy media editor at the Wall Street Journal. All of this trying to counterbalance Nelson Peltz and Trian. There's like this activist battle that seems to be going on here with Disney at the center. What do we make of it here? And how do we figure out who the winner could be in all of this.
JESSICA TOONKEL: So today is a bad day for Nelson Peltz. As you may recall, his firm Trian started an activist campaign last year against Disney saying they wanted more cost cutting. Disney CEO Bob Iger, who had just returned to CEO, implemented a very aggressive cost cutting plan. Peltz backed off.
Then he came back because he was unhappy again. And this time he brought Ike Perlmutter with him, who is an investor in Disney and wants, who wants to be on the board. He recently nominated Jay Rasulo, former Disney executive to be on the board. But Disney has all these other shareholders, including ValueAct, which has a lot of heft, backing them now. So I don't know where this is going to go for Nelson Peltz. It doesn't seem like it's boding well for their campaign.