Disney and CEO Bob Iger have recently received strong backing in their proxy fight against Nelson Peltz. With the announcement of an “information sharing” deal with activist investor ValueAct Capital and the support of investor Blackwells Capital, Disney is solidifying its position.
ValueAct Capital and Disney’s Deal
ValueAct Capital, an investor in Disney, has agreed to support the company’s recommended slate of nominees for election to the Disney board at the upcoming annual meeting. Under the confidentiality agreement, Disney will provide information and consult with ValueAct on strategic matters. This collaboration ensures that ValueAct will be a valuable ally in Disney’s future plans.
Blackwells Capital Nominates Three Candidates
Blackwells Capital, another Disney shareholder, has nominated three candidates for election to the Disney board of directors. The nominees are Jessica Schell, a former Warner Bros. and NBCUniversal executive; Craig Hatkoff, co-founder of Tribeca Film Festival; and Leah Solivan, founder of TaskRabbit. Blackwells Capital is critical of Peltz’s campaign and believes their candidates better serve the needs of Disney stakeholders.
Disney’s Response
Disney has acknowledged Blackwells Capital’s intent to nominate the three individuals and will review the proposed nominees as part of its governance process. With the board’s governance and nominating committee involved, Disney will make an informed decision regarding the nominations.
Peltz’s Proxy Battle
Nelson Peltz and his Trian hedge fund renewed their proxy battle with Disney and announced plans to nominate two directors, including Peltz himself. However, Disney alleges that former Marvel Entertainment chairman Ike Perlmutter, who owns 78% of Trian’s Disney shares, has a personal agenda against Iger. This ongoing battle has impacted Disney’s focus on its bright future.
Blackwells’ Alternative Proposal
Blackwells Capital’s campaign offers shareholders an alternative to Peltz’s proxy battle. They believe their nominees, along with a business proposal specifying the reappointment of any incumbent director outvoted by Blackwells’ candidates, will serve the best interests of Disney shareholders.
ValueAct Capital’s Expertise
ValueAct Capital, highlighting their extensive experience in investing in media and technology companies, including notable names like Spotify, the New York Times, and Microsoft, is seen as a valuable partner for Disney. Their collaboration and cooperation with the companies they invest in make them a trusted ally.
Disney Welcomes Support
Bob Iger welcomes ValueAct Capital’s input as long-term shareholders. He recognizes their track record of collaboration and cooperation and believes that their partnership will contribute to the long-term sustainable shareholder value of Disney.
Disney’s future looks promising as they secure support and alliances amidst the board battle. With the backing of ValueAct Capital and Blackwells Capital, Disney is well-positioned to navigate the challenges ahead.
Source: F5mag.com
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