Entertainment giant The Walt Disney Company (NYSE:DIS) has entered into a confidentiality agreement with activist investor ValueAct Capital Management. As a part of this agreement, Disney will communicate with ValueAct, share information, and engage in strategic consultations, including meetings with Disney’s Board and management.
Robert A. Iger, Disney’s CEO, commented, “ValueAct Capital 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. We welcome their input as long-term shareholders.”
For its part, ValueAct has “confirmed it will support the Disney Board of Directors’ recommended slate of nominees for election to the Board at the 2024 Annual Meeting.”
Meanwhile, according to a Reuters report, the battle for a seat on Disney’s Board of Directors has intensified as Blackwells Capital plans to nominate three directors at Disney, challenging Trian Fund Management’s bid for two board seats. Unlike Trian, Blackwells supports CEO Bob Iger’s strategy and has offered alternative nominees, including Jessica Schell, Craig Hatkoff, and Leah Solivan. Blackwells also suggested a board expansion to reinstate ousted directors.
What is the Target Price for DIS Stock?
Analysts remain bullish about DIS stock, with a Strong Buy consensus rating based on 17 Buys and five Holds. Over the past year, DIS stock has increased by more than 1%, and the average DIS price target of $109.67 implies an upside potential of 20.9% at current levels.
