(Reuters) - Activist hedge fund ValueAct Capital reiterated its backing for Walt Disney (NYSE:DIS) on Thursday amid a board challenge from billionaire Nelson Peltz's Trian Fund Management.
"As legacy technologies transition to digital platforms, we believe Disney can lead the media industry forward," ValueAct Co-CEO Mason Morfit said in a statement.
Disney had won the backing of ValueAct and Blackwells Capital in January in the middle of its ongoing proxy war with Peltz, who has pushed the entertainment and media giant to cut costs, create Netflix-like profit for its streaming business and clean up its succession planning.
ValueAct, which wants Disney to move beyond streaming wars, highlighted the company's actions, such as the acquisition of the remaining stake in Hulu and its integration with Disney+ as being among key steps to create bigger bundles of content.
The activist hedge fund also reaffirmed its backing for Disney's board and CEO Bob Iger and said it has seen tangible evidence of progress.