The Walt Disney Company and ValueAct Capital Management, L.P. have entered into an information-sharing Arrangement — and, in doing so, gained support for its Board nominees amid a proxy fight from Trian Capital.
What’s Happening:
- The Walt Disney Company and ValueAct Capital Management have entered into an 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.
- Importantly, ValueAct has confirmed that it will support the Disney Board of Directors’ recommended slate of nominees for election to the Board at the 2024 Annual Meeting.
- This agreement comes as Nelson Peltz’s Trian Capital is making a push for board seats.
- Last month, Peltz announced the nomination of himself and former Disney exec Jay Rasulo to Disney’s Board.
- In response, Disney stated, “The Walt Disney Company confirmed today that Trian Fund Management, L.P., alongside certain affiliates, including Trian’s previously disclosed partnership with Isaac Perlmutter pursuant to which it obtained beneficial ownership of Mr. Perlmutter’s Disney shares, has provided notice of its intent to nominate two individuals for election to the Company’s Board of Directors at the 2024 Annual Meeting of Shareholders.“
Reaction:
- Following the news, CNBC’s Jim Cramer shared Peltz’s point of view on the matter.
- In short, Peltz (via Cramer) indicated that the ValueAct agreement would have no impact on his current battle.
- You can watch the full segment below:
What They’re Saying:
- Bob Iger, Disney’s Chief Executive Officer: “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.”
- Mason Morfit, ValueAct Capital Co-CEO and Chief Investment Officer: “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.”