Jan 3 Reuters Two activist hedge funds, ValueAct Capital and Blackwells Capital, moved on Wednesday to provide backing to Walt Disney Co as it defends itself against a board challenge from a third activist investor, Trian Fund Management.

The unusual twist in the battle for Disney39;s board underscores the high stakes in the company39;s attempted turnaround under CEO Bob Iger. He led Disney from 2005 to 2020 and returned to the helm in November 2022, after investors punished the company39;s stock for a 1.5billion quarterly loss in its streaming division, more than double the yearago loss, and many of its movie franchises underperformed.

Disney said on Wednesday it reached a deal with ValueAct to advise it on strategy and support its director nominees at its annual shareholder meeting.

Separately, Blackwells said it would nominate three directors to Disney39;s board, who, unlike Trian, are supportive of the company39;s strategy, confirming an earlier Reuters report.

ValueAct has a track record of collaboration and cooperation with the companies it invests in and its coCEO Mason Morfit has been very constructive in the conversations we39;ve had over the past year, Disney CEO Bob Iger said.

The company did not immediately comment on Blackwells39; move.

Trian CEO Nelson Peltz has nominated himself and a former Disney Chief Financial Officer to Disney39;s board, positioning themselves as the people the media and entertainment giant needs now to cut costs, lay out a CEO…