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Credit: Inside the MagicWalt Disney Company CEO Bob Iger has been facing a challenge to his authority from a vengeful former Marvel chairman and a billionaire investor but just gained two powerful allies in the form of an activist group and one of the world’s largest hedge funds.
Last October, billionaire activist investor and Trian Partners founder Nelson Peltz began purchasing millions of Disney shares in what turned out to be a new attempt to seize the company’s board of directors in what is known as a proxy battle. Peltz already attempted this maneuver in January of 2023, but was unable to pull enough sway.
This time, however, Nelson Peltz has the support of former Marvel Entertainment Chairman Ike Perlmutter, the single largest individual Disney shareholder. Reportedly, Perlmutter has personal animosity against Bob Iger, holding him responsible for what he described as being “fired” from the company (albeit with over a billion dollars worth of compensation in the form of cash and stock).
Related: Bob Iger Will Stay at Disney for Foreseeable Future, Per Report
Peltz has been nominated (by Trian, his own company) for the Disney board of directors and has made it clear that he intends to oust Bob Iger from his position as CEO if he succeeds in accumulating enough shareholder power. Things have not looked great for the struggling executive, but now, ValueAct Capital Management and Blackwells Capital have made it clear that they are supporting Iger in the proxy battle.
Disney announced that it has entered an agreement with ValueAct “that enables the company to provide information to the investment firm and consult with ValueAct on strategic matters, including through meetings with the Disney Board and management.”
ValueAct, a company known for quietly accumulating shares of major companies like Microsoft, Salesforce, Spotify, and the New York Times and guiding them behind the scenes, has “confirmed it will support the Disney Board of Directors’ recommended slate of nominees for election to the Board at the 2024 Annual Meeting.” Boiled down, this means that ValueAct will use its shares to vote for Bob Iger’s side in the proxy battle.
At the same time as Bob Iger gained the massive backing of ValueAct, Blackwells Capital, a major Disney shareholder that has previously decried Peltz’s attempts to gain board seats as a “misguided and ego-driven campaign to seek board representation,” has announced its own tacit support. Per Reuters, Blackwells reportedly will nominate three people for board seats: former Warner Brothers executive Jessica Schell, Tribeca Film Festival co-founder Craig Hatkoff, and TaskRabbit founder Leah Solivan.
Related: Disney Head Bob Iger Blames Pandemic for ‘The Marvels’ Failure, Wants More Executives
This is a more passive form of support for Bob Iger than ValueAct. Rather than pledging shares for the Disney board of directors’ nominees, it is adding a third option for any shareholders who are not sure what side they come down on in the proxy battle. This could split Peltz and Perlmutter’s voting bloc and very possibly push things even further in Iger’s favor.
Since Bob Iger was brought back as Disney CEO (and Bob Chapek ousted as a result), he has struggled to achieve the same successes as he did in his first stint as chief executive. He has faced two massive, industry-changing strikes, numerous high-profile box office flops (and hits, to be fair), and a very public battle with the Governor of Florida.
He’s also had to deal with rapidly dwindling confidence in his abilities to right the Disney ship, and Nelson Peltz has been ready and willing to try to take advantage of that wavering faith. We’ll just have to see whether the support he’s gained from ValueAct and Blackwells will be enough to counter it.
Inside the Magic reached out to ValueAct and Blackwells for comment, but has not heard back by the time of publishing.
Do you think Bob Iger will be ousted as Disney CEO? Let’s hear your thoughts in the comments below!