The Walt Disney Co. and activist investor ValueAct Capital Management have entered into a “confidentiality agreement that enables the company to provide information to the investment firm and consult with ValueAct on strategic matters, including through meetings with the Disney board and management,” the Hollywood giant said on Wednesday.
As part of the announcement of the arrangement, ValueAct also confirmed that it would support the Disney slate of nominees for the company’s board of directors at Disney’s upcoming annual shareholder meeting. The news comes amid Disney’s proxy battle with Nelson Peltz and his firm Trian Partners.
It lauded ValueAct for its “extensive experience investing in media and technology companies navigating significant business transformations, including Spotify, The New York Times, 21st Century Fox, Nintendo, Microsoft, Adobe and Salesforce.”
Said Disney CEO Bob Iger: “ValueAct Capital has a track record of collaboration and cooperation with the companies it invests in, and its co-CEO Mason Morfit has been very constructive in the conversations we’ve had over the past year. We welcome their input as long-term shareholders.”
Morfit szid: “Disney is the world’s leading entertainment company. It has the best intellectual property, sports brand and parks & experiences assets in the industry. As legacy technologies transition to digital platforms, we believe Disney can lead the media industry forward. We could not be more excited to partner with Bob and the board to help create long-term sustainable shareholder value.”
