Disney Reaches Agreement With Third Point, Will Add Ex-Meta Executive To Board

Disney Reaches Agreement With Third Point, Will Add Ex-Meta Executive To Board
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The Disney+ website on a laptop in the Brooklyn borough of New York, USA, on Monday, July 18, 2022.

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Disney has struck a deal with activist investor Dan Loeb’s Third Point, which includes adding former Meta executive Carolyn Everson to its board of directors, the the companies said Friday.

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

On Friday, Disney said in a public presentation with the support of Third Point, it would add Everson to its board before its board meeting in November.

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

Disney Appoints Former Instacart President Carolyn Everson to Board of Directors

As part of the settlement, Third Point agreed to the usual suspension and other provisions, including that it would not take more than a 2% stake in Disney and that it would not solicit proxies or submit proposals. Third Point, which will also not be involved in board nominations, agreed to the stipulations through Disney’s 2024 annual shareholder meeting, 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 building on Disney’s many successes and increasing 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 she said makes her “an excellent fit as we continue to position the company for long-term growth.”

Everson was in Goal, formerly Facebook, for more than 10 years, where she served as head of ads for the social media platform. Although Everson had been considered one of the most prominent women, along with former Facebook COO Sheryl Sandberg, she left the company after Marne Levine was promoted to chief commercial officer last summer.

More recently, she did a short season as president of the Instacart grocery delivery service, where she left after just three months. At the time, Instacart and Everson told CNBC that the decision for her to leave was mutual.

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

Loeb initially looked at Disney’s ESPN business and said spinning off that division would give Disney more flexibility to pursue sports betting and other business initiatives. However, shortly after, he reverse course.

“We better understand @espn’s potential as an independent business and another vertical for $DIS to reach a global audience and generate ad and subscriber revenue,” Loeb said earlier this month in a tweet.

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