The Mouse House is getting crowded with activist investors.
San Francisco–based ValueAct Capital is the latest activist to take a stake in
Walt Disney
(ticker: DIS), believing the shares are undervalued. The size of ValueAct’s stake is unknown but it was revealed as another activist fund, Nelson Peltz’s Trian Fund Management, is preparing to seek several seats on Disney’s board.
The presence of two major activists could well ratchet up the pressure on Disney as it tries to win back investor support. (Peltz is also voting shares held by former Marvel executive Isaac “Ike” Perlmutter.)
Earlier this month, Disney announced an additional $2 billion in cost cuts and plans to reinstate its dividend. Shares are up 8% this year, trading around $94 apiece, helped by activist interest, but Disney’s stock is still down more than 50% from its all-time high in March 2021.
ValueAct argues that Disney’s theme parks and consumer-products businesses alone are worth $80 a share, but it hasn’t yet revealed any plans for the media and entertainment giant. The hedge fund, launched by Jeff Ubben, who left in 2020, has been depicted as a “friendly activist,” often easily gaining at least one seat on the boards of companies it targets. ValueAct isn’t working with Trian, according to a source familiar with the matter.
News of ValueAct’s stake was first reported by CNBC. ValueAct didn’t immediately respond to a request to comment. Disney declined to comment on ValueAct’s stake. ValueAct’s presence likely won’t change Trian’s tactics.
Write to Carleton English at [email protected]
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