Amidst the continuing proxy battle from Trian Partners and Blackwells Capital, another high-profile activist firm has reaffirmed their support for CEO Bob Iger and the Disney board, according to The Hollywood Reporter.
What’s Happening:
- ValueAct Capital, led by co-CEO Mason Morfit, released a whitepaper Thursday outlining its own strategic ideas for Disney, and explaining why it supports Iger and Disney leadership.
- ValueAct initially signed on to support Disney in January, but the next few weeks will be critical in persuading shareholders on which slate of director nominees to support.
- The firm’s other media and tech investments are outlined in the presentation, which include 21st Century Fox, Spotify, Nintendo, Roblox and Microsoft.
- They also laid out an investment thesis for Disney: “Lean into parks,” and “move beyond the streaming wars” with “bigger bundles,” “better consumer experiences,” “better advertising technology,” and “work with the other studios to test new ideas and create wins.”
- An important note that ValueAct calls attention to is Disney’s pledge to invest $60 billion into Disney Parks and Experiences over the next 10 years.
- As far as streaming goes, ValueAct noted that only Netflix is profitable in streaming, but that Disney has the advantage of broadcast reach, and a reputation for being creative-friendly.
- “Why did we commit our votes for the board and leadership?” the presentation concludes. The company says it's because “we have a thesis — informed by our network and toolkit,” “we have a positive collaboration — LOTS of learning and teaching — well underway,” and “we have tangible evidence of progress.”
- In January, ValueAct and Disney entered into an information sharing agreement, which is where the firm initially shared their support for Disney.