Source – Wallpapers.com
ValueAct Capital has reportedly acquired a significant stake in Walt Disney and envisions the potential for the media and entertainment giant’s stock price to approximately double, according to sources familiar with the investment firm’s perspective. The San Francisco-based ValueAct has had a longstanding relationship with the company team, spanning over a decade, and has been in communication with management as it amassed its stake in recent months, as per sources not authorized to publicly discuss the firm’s views.
While the exact size of the stake remains unclear, and details about specific changes ValueAct might advocate for are unknown, insiders suggest that ValueAct believes Disney, the iconic home of Mickey Mouse, has untapped potential.
ValueAct and Disney have declined to comment
ValueAct’s position in Disney, which has not been officially disclosed by either party, was initially reported by 13D Monitor. Both ValueAct and Disney have declined to comment on the matter. ValueAct has allegedly suggested that the company’s stock price could trade within the range of $120 to $190 per share, significantly higher than its current price of $94.19.
Under CEO Bob Iger’s leadership, the Company is reportedly well-positioned in terms of streaming subscribers and boasts an extensive content library spanning Animation, Pixar, Star Wars, Marvel, and general entertainment. Additionally, the company’s theme parks are seen as potential avenues for generating more revenue from its beloved characters and stories.
ValueAct’s entry into Disney comes at a time when the company, valued at $167 billion, is already dealing with another activist investor, Nelson Peltz’s Trian Fund Management. Peltz recently disclosed that Trian increased its stake in the company’s common shares by over 400%, holding 32.9 million shares worth approximately $2.7 billion at the end of the third quarter.
Known for its quiet, behind-the-scenes approach
Peltz’s move follows his earlier indication that he plans to nominate several directors to the board, possibly laying the groundwork for a second proxy fight. Meanwhile, ValueAct is known for its quiet, behind-the-scenes approach, holding board seats at roughly half of the companies in its portfolio.
While ValueAct focuses on collaboration and providing its deep understanding to companies, particularly in the technology sector, Peltz has been more vocal in his push for change within Disney. Despite the differing strategies, both ValueAct and Trian’s involvement adds a layer of complexity to Disney’s current corporate landscape.
As of Wednesday’s closing, Disney shares rose 3.1% to $93.93.
Also read: Disney Surpasses Q4 Profit Expectations, Announces $2 Billion In Expense Reductions
