Disney Faces BoD Membership Tug of War; Viewed Positive for the Stock

Activist hedge funds ValueAct Capital and Blackwells Capital decided on Wednesday to back Walt Disney Co (DIS) as the company fended off a board challenge from a third activist investor, Trian Fund Management.

The unusual turn in Disney's boardroom battle highlights how risky the company's quest to turn a profit is under CEO Bob Iger.

Iger, who led Disney from 2005 to 2020, returned to the helm in November 2022 as investors punished the company's stock for a quarterly loss of $1.5 billion in the streaming unit and underperformance of many of its movie franchises. Disney said on Wednesday it had reached an agreement with ValueAct to advise the company on its strategy and support its director nominees at its annual shareholder meeting.

Board membership struggles – as much as any sorts of anticipated corporate/M&A bids – usually lead to some degree of price appreciation of a given stock. Meanwhile, Disney announced that the Q1 earnings call for 2024 will take place on Wednesday, February 7th at 4:30 p.m. EST. During the call, managers will discuss the financial results from the first fiscal quarter.