San Francisco-based ValueAct has known the Disney team for more than a decade and has been in contact with management as it built its stake over the last months, said the sources, who were not permitted to discuss the firm’s views publicly.
While the exact size of the stake is unclear and it could not be learned what specific changes ValueAct may be pushing for, the people said ValueAct believes the home of Mickey Mouse can flex its muscles anew.
News of ValueAct’s position was first reported by 13D Monitor.
ValueAct and Disney declined to comment.
Disney’s stock price could trade between $120 and $190 a share, far above its current $94.19 price, ValueAct has suggested, the people said.
CEO Bob Iger’s Disney is well positioned in terms of streaming subscribers and has a content library that spans Animation, Pixar, Star Wars, Marvel and general entertainment, the people said.
Its theme parks can help earn more revenue from its characters and stories, the sources said.