'Activist Investor ValueAct Has Been Building A Stake In Disney' - CNBC
Portfolio Pulse from Benzinga Newsdesk
Activist investor ValueAct Capital has been accumulating a significant stake in The Walt Disney Company (DIS) since the summer, during the Hollywood strikes. ValueAct, known for its corporate governance focus, is in dialogue with Disney's management and considers Disney's theme parks and consumer products businesses to be worth low $80s per share on their own. ValueAct's involvement has historically led to increased profitability and stock prices in other companies. Disney's current market value is $167 billion, and the company has announced an aggressive cost-cutting plan. ValueAct's history of board involvement and strategic initiatives in other companies suggests potential for a similar impact at Disney, especially with the ongoing proxy fight with Nelson Peltz and Trian Partners.
November 15, 2023 | 2:05 pm
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POSITIVE IMPACT
ValueAct Capital's stake in Disney and ongoing dialogue with management could lead to strategic changes, potentially increasing profitability and stock price. The firm's track record at other companies supports the possibility of a positive impact on Disney's financial performance.
ValueAct Capital's history of active investment and board involvement typically results in operational improvements and increased shareholder value. Given their approach at companies like Salesforce and Microsoft, and the current proxy fight at Disney, ValueAct's stake is likely to lead to positive changes in the short term. The market often reacts favorably to such activist involvement, especially when it suggests a potential for improved governance and profitability.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90