- Wednesday, October 16, 2024
Shares of Walt Disney (ticker: DIS) rose on Wednesday following reports that Activist investment firm ValueAct Capital has acquired a "significant" stake in the entertainment company. While specific details of the investment have not been publicly disclosed, ValueAct's involvement is seen as a positive development for Disney.
Disney investors have been calling for change as the company faces challenges with declining viewership of linear TV and the growing popularity of competitive and costly streaming services. In response, Disney has expressed openness to selling certain TV assets and is reportedly exploring opportunities to integrate some of its smaller TV networks into its joint venture with Hearst.
Additionally, Disney is also grappling with disappointing box office returns for its films. ValueAct, known for its investments in other media companies such as Spotify and The New York Times, brings valuable expertise in navigating the complex modern media landscape.
In a report, Activist Spotlight highlighted ValueAct's belief that Disney's theme parks and consumer products businesses alone are worth around $80 a share. This valuation takes into account Disney's recent announcement of a $60 billion investment in its parks, experiences, and products segment over the next decade.
The news of ValueAct's stake in Disney coincides with investment firm Trian Fund Management, led by Nelson Peltz, seeking seats on the company's board. The combination of these developments indicates a growing interest in influencing the future direction of Disney's operations.
Overall, ValueAct's involvement is seen as a positive catalyst for change within Disney and could potentially drive its stock price even higher.
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