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The
agreement with San Francisco-based ValueAct, known for working
collaboratively with target companies, bodes well for Disney
ahead of what is expected to a be a bitter proxy battle with
another activist investor, Nelson Peltz.
"ValueAct 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," Disney CEO Bob Iger said.
Iger spent much of last year overhauling the business and
grappling with demands from Peltz's Trian Fund Management.
Peltz has nominated himself and an ally to Disney's board,
positioning themselves as the people the media and entertainment
giant needs now to cut costs, lay out a succession plan and
revamp the company's loss-making streaming operations.
His investment firm, Trian Fund Management, did not immediately
respond to a request for comment.
ValueAct has known the Disney team for more than a decade and
has been in contact with management as it built its stake over
the last months, sources told Reuters in November.
It sees room for the company's stock price to roughly double,
the sources had said.
(Reporting by Akash Sriram and Aditya Soni in Bengaluru; Editing
by Shounak Dasgupta)
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