According to a report from Reuters, Walt Disney (DIS) is set to win its battle against activist investor Nelson Peltz over board seats after its annual shareholder meeting takes place on Wednesday. However, in that same report, the source of the information claimed it was possible that some shareholders could change their votes.

Yahoo Finance Entertainment Reporter Alexandra Canal joins Morning Brief to break down the report from Reuters, potential outcomes, and what it could mean for Disney and Peltz moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

BRAD SMITH: Switching gears everyone. Disney will reportedly come out on top in its boardroom battle against activist investor, Nelson Peltz. After securing enough shareholder votes according to Reuters, Yahoo Finance's Alexandra Canal here with the breakdown on all things, House of Mouse.

ALEXANDRA CANAL: Yeah. Brad, so we're in the final hours of this proxy battle. You said, it looks like Disney has come out on top but even Reuters said it's very possible that shareholders could switch their vote at the last minute. So nothing is final, nothing is determined until we hear from Disney at that shareholder meeting later this afternoon.

And although the company has a fair amount of individual retail investors, roughly between 30% to 40%. It's really going to come down to those institutional shareholders, they have the most pull and they're going to have the most impact on this vote. Vanguard, BlackRock, and State Street, these are the three largest shareholders of Disney.

According to the Wall Street Journal, BlackRock has voted in favor of Disney's current board. Reuters saying that Vanguard has done the same the position of State Street is still unknown. But that's really crucial considering how influential these shareholders have and their influence on the board. Now, I will say even if Disney does win this battle, they still have a lot of work to do in order to win the war.

The spotlight, it's going to be even more heavily placed on this board. I don't think Nelson Peltz is going away anytime soon. I mean, this proxy fight, it caused millions of dollars. Disney reportedly spent 40 million on the fight, Nelson Peltz $25 million, Blackwells Capital another activist investor, $6 million.

The videos, the press releases, the letters, I mean this-- even people that aren't shareholders of Disney, know this is happening, know this is going on. Laura Martin from Needham she had a note out, saying that shareholders have benefited from this proxy fight.