Disney Reaches Deal With Third Point, Adds Former Meta Executive To Its Board

Disney has reached a deal with activist investor Dan Loeb’s Third Point that includes the addition of former Meta executive Carolyn Everson to its board, the companies announced Friday.

The deal comes weeks after Third Point took a new stake in Disney representing around 0.4% of the company and urged the media company to expand its sports property, ESPN. Third Point’s 6.35 million shares of Disney are worth about $600 million as of Friday’s close.

On Friday, Disney said in a public filing that with support from Third Point, it would add Everson to its board before its November board meeting.

“We are pleased with our productive and ongoing dialogue with Bob and the Disney leadership team,” Loeb said in Friday’s statement.

As part of the deal, Third Point agreed to the usual status quo and other terms, including that it would not take an equity stake in Disney greater than 2% and that it would not solicit proxies or present proposals. Third Point, which also will not participate in board nominations, agreed to the stipulations at Disney’s 2024 annual meeting of shareholders, according to the filing.

Disney shares rose slightly in after-hours trading.

“We have a productive and collegial relationship with Third Point, with whom we share a deep commitment to continue to build on Disney’s many successes and increase shareholder value,” Disney CEO Bob Chapek said in the statement. .

Chapek welcomed Everson’s appointment to the board, noting her experience in digital advertising, which he said makes her “an ideal candidate as we continue to position the company for long-term growth. “.

Everson was at Meta, formerly Facebook, for more than 10 years, where she served as the social media platform’s head of ads. Although Everson was considered one of the most high-profile women – alongside former Facebook COO Sheryl Sandberg – she left the company after Marne Levine was promoted to chief executive. business last summer.

Most recently, she had a brief stint as president of grocery delivery service Instacart, which she left after just three months. At the time, Instacart and Everson told CNBC the decision to leave was mutual.

With Everson, who officially takes his seat on November 21, Disney will have 12 members on the board.

Loeb first looked at Disney’s ESPN business, saying splitting that division would give Disney more flexibility to pursue sports betting and other business initiatives. However, soon after, he backtracked.

“We have a better understanding of the potential for @espn as a standalone business and another vertical for $DIS to reach a global audience to drive ad and subscription revenue,” Loeb said earlier this month. here in a tweet.