News

Disney Enters Information-Sharing Agreement with ValueAct Capital

James L. Flint

• January 03, 2024

The Walt Disney Company (DIS) has announced an information-sharing agreement with activist investor ValueAct Capital Management L.P. This agreement comes at a crucial time as Disney undergoes a significant transformation in its operations.

Strategic Consultation and Support

Under the terms of the agreement, Disney will have the opportunity to consult with ValueAct on strategic matters. This includes meetings with the board and management to discuss various issues. The purpose is to leverage ValueAct's expertise and insights during this transformative phase.

Shareholder Support

ValueAct has pledged its support for the board's recommended slate of nominees for election in the 2024 annual meeting. This collaboration aims to ensure a unified direction and decision-making process for the benefit of shareholders.

Addressing Activist Investors

This announcement comes amidst efforts by another activist investor, Nelson Peltz's Trian Fund Management, to effect change within Disney. Peltz's fund has acquired nearly 33 million shares of Disney stock and has been advocating for various changes, including the addition of Peltz and former Walt Disney Co. Chief Financial Officer Jay Rasulo to the board.

Embracing Collaboration

Disney CEO Bob Iger expressed his approval of collaborating with ValueAct Capital. He highlighted ValueAct's track record of productive collaboration and cooperation with the companies it invests in. Iger stated, "We welcome their input as long-term shareholders."

Recent Performance

Over the past 12 months, Disney's stock has experienced a reasonable increase of 2%. In comparison, the S&P 500 has seen a more significant gain of 24%.

As Disney continues to navigate its transformational journey, the information-sharing agreement with ValueAct Capital Management is poised to bring valuable insights and support to the table. By embracing collaboration with long-term shareholders, Disney seeks to strengthen its position and drive sustainable growth.