The Walt Disney Company has made a strategic move ahead of its proxy battle with Nelson Peltz by inking an “information-sharing” deal with activist investor ValueAct Capital.
The deal ensures that ValueAct, an investor in TWDC, will support the company’s recommended slate of nominees for election to the Disney board at the upcoming annual meeting.
Peltz has stated his intention to renew his proxy battle with Disney CEO Bob Iger by securing two seats on the board via his hedge fund Train Fund Management. Last month Peltz announced he and former Disney CFO James Rasulo planned to nominate themselves as candidates for directors of the Disney board at the annual shareholders meeting, which is expected to be held this spring.
According to a joint press release from TWDC and ValueAct, the new deal will enable Disney “to provide information to the investment firm and consult with ValueAct on strategic matters, including through meetings with the Disney Board and management.”
ValueAct has previously worked with Spotify, The New York Times and Nintendo, among other companies.
“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,” said Iger.
Morfit added: “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.”
