Disney has gained the support of activist hedge funds despite attempts to prevent billionaire investor Nelson Peltz from joining its Board of Directors .
ValueAct Capital is a San Francisco based hedge fund that will be supporting the US entertainment giant’s board nominations at its spring annual shareholder meeting.
Blackwells Capital, an activist investor, announced that it had nominated for director positions three individuals who support Disney’s efforts to turn the company around under Bob Iger.
The support comes in the midst of a boardroom war with Mr Peltz’s Trian Fund Management which announced last month plans to nominate activist investor James Rasulo and Disney’s ex-finance chief James Rasulo as board members.
This move follows the New York-based Asset Manager, who owns $3bn in Disney shares, reviving its proxy fight against the company last November.
Mr Peltz’s daughter Nicola, who is married to Brooklyn Beckham has attacked Disney for its “over-the top” executive pay, and failed succession planning, after parachuting former boss Mr Iger in less than a month after he retired.
The 81 year old, who is known for launching campaigns to shake up companies such as Procter & Gamble and Heinz initially pushed for a seat on the board but lost out after Disney announced massive job cuts in February.
Disney, who had previously encouraged shareholders to vote against Mr Peltz in November, defended its board of directors and recommended that shareholders support their slate of director nominees.
Blackwells Capital released a statement on Wednesday saying: “Flip flopping, self interest and personal quarrels do not belong in a Boardroom.
“Individuals who wish to be represented on Disney’s Board of Directors must possess the skills that are required by the Board as well as a track record of generating value for all stakeholders.” “Mr. Peltz, his coterie and their cronies seem to have failed this test time and again.”
Jason Aintabi is the chief investment officer of a New York-based firm. He demanded that Mr Peltz stop “his peacocking”, so Disney could focus on its transformation initiatives.
Blackwells Capital has nominated three people: Jessica Schell, executive at WarnerBros. Discovery; Craig Hatkoff, co-founder of the Tribeca Film Festival; and Leah Solivan. Solivan is founder of TaskRabbit.
Disney announced on Wednesday that ValueAct Capital had given its endorsement. ValueAct Capital manages over $16bn on behalf of institutional investors.
Disney will share information and consult ValueAct Capital on strategic issues through meetings with the company’s board of directors and management.
Mason Morfit, the joint chief executive of Value Act Capital and Mr. Iger, said that the agreement was reached after “very productive” discussions over the last year.
ValueAct Capital, which is owned by Mr Morfit and his wife, actress and Fast and Furious actor Jordana Brewster said it believes that Disney can lead media as it transitions from its legacy technologies to digital platforms.
Disney’s offer to share sensitive data with major shareholders is not new. ValueAct Capital includes Microsoft, Rolls-Royce, and Spotify as its investors.
Disney offered Mr Peltz an information-sharing deal after initially denying his billionaire activist’s request for a board seat at the end 2022.
Mr Peltz rejected the offer that would have allowed him to meet with Disney’s management team and board of directors quarterly, but did provide voting rights.
Trian Fund Management spokesman said: “As Disney’s largest active shareholder with an estimated $3bn in beneficial ownership, Trian welcomes the efforts of other shareholders to fix this iconic, but wayward, company.
We believe that long-suffering Disney shareholders require Nelson Peltz, and Jay Rasulo to be independent voices and catalysts of much-needed change in what has been a chronically low performing Board.