Disney reaches an agreement with Third Point, will add former Meta executive to his board

The Disney + website on a laptop in the borough of Brooklyn in New York, United States, Monday, July 18, 2022.

Gabby Jones | Bloomberg | Getty Images

Disney 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 companies said Friday.

The deal comes weeks after Third Point acquired a new stake in Disney representing about 0.4% of the company and urged the media company to create its sports property, ESPN. Third Point’s 6.35 million Disney stock is worth approximately $ 600 million at close on Friday.

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

“We are pleased with our productive and ongoing dialogue with Bob and the Disney management team,” Loeb said in a statement on Friday.

Disney names former Instacart president Carolyn Everson on board

As part of the agreement, Third Point accepted the customary suspension and other provisions, including the fact that it would not request a stake in Disney greater than 2% and that it would not solicit proxies or submit proposals. Third Point, which also will not be involved in the board appointments, agreed to the arrangements through Disney’s 2024 annual meeting of shareholders, according to the filing.

Disney shares rose slightly in after-hour 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 increase shareholder value,” Disney CEO Bob Chapek said in the release.

Chapek welcomed Everson’s appointment to the board of directors, noting her expertise in digital advertising, which he believes makes her “a great choice as we continue to position the company for long-term growth.”

Everson has been at Meta, formerly of Facebook, for more than 10 years, where she served as the head of the social media platform’s ads. Although Everson was considered one of the most important women, along with former Facebook COO Sheryl Sandberg, she left the company after Marne Levine was promoted to Chief Business Officer last summer.

Most recently, he served a short stint as president of the Instacart grocery delivery service, from which he left after just three months. At the time, Instacart and Everson told CNBC that the decision for her to leave was mutual.

With Everson officially taking over on November 21, Disney will have 12 board members.

Loeb initially noted Disney’s ESPN business, saying discontinuing that division would give Disney more flexibility to pursue sports betting and other business ventures. However, shortly thereafter, he reversed course.

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