(Bloomberg) -- Walt Disney Co. Chief Executive Officer Bob Iger is lining up allies as he seeks to stave off pressure from billionaire activist Nelson Peltz.

ValueAct Capital Management pledged on Wednesday to support Disney’s board nominees at this year’s annual shareholder meeting and will consult with it on strategy as the world’s largest entertainment company works to improve its financial performance. 

At the same time, activist hedge fund Blackwells Capital, which backs Iger’s efforts, is proposing three nominees to the Disney board who would champion the CEO’s strategy and offer an alternative to Peltz’s Trian Fund Management.

In a second statement Wednesday, Blackwells tempered its support by criticizing the cooperation accord between Disney and ValueAct.

“Today’s announced agreement with ValueAct is a disappointing defensive move by Disney that does not solve for anything,” Blackwells said. “Bringing all shareholders a real and better choice for directors is the necessary act that will support the future success of Disney.” 

Support from ValueAct and Blackwells gives Iger a public relations victory and puts additional pressure on Trian to better articulate an alternate vision for the company’s future.

Iger has been under pressure from Trian ever since he returned as CEO in late 2022. At that point, Disney, under Iger’s successor Bob Chapek, was losing billions of dollars at its streaming services and had fielded a string of disappointing movies. Iger 72, has committed to cutting about $7.5 billion in costs and has eliminated 8,000 jobs.

Trian, which holds about $3 billion of Disney stock, or 1.8% of shares outstanding, wants more. Peltz, who claims Disney bungled its succession plan and criticized how closely connected Iger is to the current board, has proposed that he and ex-Disney Chief Financial Officer Jay Rasulo join the board. Peltz said last month that Disney must address “compensation misalignment, governance and succession issues that have plagued the company for decades.”

Read more: Disney Needs Ex-CFO and Nelson Peltz on Board, Trian Says 

Blackwells, a significantly smaller and less well-known fund, is proposing nominees that may appeal to Disney shareholders who agree that a refreshed board could help Iger but object to the hostile approach of Trian’s nominees. Blackwells owns about $5 million of Disney shares, according to Reuters, which reported on Blackwells’ actions earlier Wednesday.

“Shareholders deserve the opportunity to continue supporting Disney’s turnaround and transformation efforts under the leadership of the current board and CEO,” Blackwells said in a earlier statement. Peltz’s effort “is driven by animus against Mr. Iger, and an ego-driven urge to claim credit for a transformation already underway.”

ValueAct has amassed a significant holding in Disney, Bloomberg has reported, though the actual size isn’t clear. Its increasing stake, however, is seen as accelerating shareholder friendly moves at the Burbank, California-based company. Iger has at least a cordial relationship with ValueAct CEO Mason Morfit, who is married to actress Jordana Brewster. Known for her role in the Fast & Furious films, Brewster has owned a home near Iger in the tony Brentwood neighborhood of Los Angeles.

Iger and Morfit have gone on hikes together, people familiar with the matter said in November, while Morfit and Brewster attended a screening of the Disney film Flamin’ Hot in Los Angeles last summer.

Morfit said Wednesday that Disney has the best intellectual property, sports brand and theme park assets, and can lead the media industry forward as legacy technologies transition to digital platforms. Iger said the company has had “very constructive” conversations with ValueAct over the past year. 

“ValueAct Capital has a track record of collaboration and cooperation with the companies it invests in,” Iger said in the joint statement. “We welcome their input as long-term shareholders.”

Disney shares, up about 2% in the last 12 months, were little changed at $90.46 in New York on Wednesday morning. 

At this year’s shareholder meeting, which is typically held in the spring, Blackwells is nominating Jessica Schell, a former Warner Bros. executive with expertise in content distribution; Tribeca Film Festival co-founder Craig Hatkoff; and Leah Solivan, who founded and headed TaskRabbit Inc..

Blackwells Onshore I LLC beneficially owns 9,850 shares of common stock, $0.01 par value per share, according to the statement from Blackwells. Jason Aintabi, Blackwells chief investment officer, beneficially owns 56,600 shares and Blackwells Capital LLC owns 56,600.

Disney said it will review Blackwells’ nominees and provide a recommendation to the board.

Disney has nominated Morgan Stanley Chairman James Gorman and veteran media executive Jeremy Darroch to join its board.

Trian welcomes other shareholders “attempting to help fix this iconic but wayward company,” a spokesperson said. The company believes “long suffering Disney shareholders” need Peltz and Rasulo as “independent voices and catalysts for much needed change,” the spokesperson said.  

(Updates with new Blackwells statement starting in fourth paragraph.)

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