Disney has secured support from activist hedge funds in its battle against billionaire investor Nelson Peltz’s attempts at a board coup.
US hedge fund ValueAct Capital and activist investor Blackwells Capital are backing Disney’s board nominees at its upcoming shareholder meeting in spring.
Blackwells has nominated three directors, including executives from WarnerBros Discovery and the Tribeca Film Festival, in favour of the company’s ongoing turnaround efforts, led by boss Bob Iger.
ValueAct Capital has inked a confidentiality deal with Disney, the Mickey Mouse creator announced on Wednesday.
It comes as another activist investor, Peltz’s Trian Fund Management, is seeking as many as three of its own board seats.
Peltz also criticised Disney’s executive pay and succession planning, initially withdrawing after Disney announced job cuts in February.
However, the feud reignited late last year when Trian, which controls a $3bn (£2.4bn) stake in Disney, said it would take the “case for change directly to shareholders” after Disney rebuffed Peltz’s fresh bid to secure board seats.
Blackwells criticised Peltz and his agenda, saying: “Flip-flopping, self-interest and personal quarrels have no place in a Boardroom.
“Individuals seeking to gain representation on Disney’s Board must-have skill sets that the Board needs as well as a demonstrable record of creating value for all stakeholders. Mr. Peltz and his coterie seem to fail that test, time and time again.”
Disney faced a $70bn (£55bn) decline in shareholder value in 2023 since Trian’s previous rumblings with Disney at the start of this year.