The Walt Disney Company (NYSE:DIS) shareholder and Mason Morfit-led firm ValueAct Capital Management has thrown its support behind CEO Bob Iger in the ongoing activist investor battle at the media conglomerate.
The move aims to counter challenges from activist investor Nelson Peltz, former Disney CFO James Rasulo, and ousted Marvel mogul Ike Perlmutter.
Disney and ValueAct entered into a confidentiality agreement, allowing the exchange of information and consultation on strategic matters.
ValueAct committed to supporting Disney's slate of nominees for the upcoming annual shareholder meeting.
The proxy battle intensified when Trian Partners, backed by Perlmutter, nominated Peltz and Rasulo to Disney's board, criticizing the company's performance. Meanwhile, investment firm Blackwells Capital LLC plans to nominate three board candidates.
Peltz's stake is valued at $3 billion, while the exact size of ValueAct's stake is undisclosed.
Separately, Variety reported yesterday that Universal Pictures had dethroned Disney as the highest grossing studio for the year for the first time since 2015.
In 2023, Universal’s titles grossed over $4.9 billion in worldwide ticket sales while Disney trailed at just over $4.8 billion, though it released seven fewer films.
It was also the first year that a Disney film failed to gross over $1 billion at the box office.