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Legendary film director George Lucas is backing Disney and CEO Bob Iger in their proxy battle with activist investor Nelson Peltz.
“No one knows Disney better than CEO Bob Iger,” Lucas said in a statement seen by Reuters.
“I remain a significant shareholder because I fully believe in the power of Disney and Bob’s track record of driving long-term value,” he said. “I have voted all of my shares for the 12 members of Disney’s Board of Directors, and I strongly encourage other shareholders to do the same.”
George Lucas attends the Chanel Haute Couture fall/winter show as part of Paris Fashion Week on July 4, 2023. (Arnold Gierocchi/Getty Images)
Lucas has been a Disney shareholder since 2012, when he sold his production company Lucasfilm to the media giant for more than $4 billion in cash and stock.
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According to Reuters, Lucas said he was “delighted” to own a stake in Disney because he has “long admired Disney’s iconic brand and Bob Iger’s leadership,” adding that Iger would return in 2022. He said he was “relieved” when he did so.
Disney and Iger are facing criticism from Mr. Peltz and his hedge fund, Trian Partners, as they continue a proxy fight that began in late November.
Disney’s Bob Iger attends a sneak preview of Peter Jackson’s “The Beatles: Get Back” held at the El Capitan Theater in Hollywood, California on November 18, 2021. (Charlie Galley/Disney/Getty Images)
FOX Business has reached out to Tryon for comment.
As part of the proxy fight, the company nominated Peltz and former Disney chief financial officer James Laslo to become directors, saying they would help the entertainment giant “restore the magic.”
In a Monday letter to Disney shareholders, Tryon argued that the company has “lost its path” and that its financial performance, including its stock price, is “deteriorating.” He specifically raised the issue of box office performance, streaming and linear TV.
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The company said Peltz and Laszlo, if elected, would bring “focus, collaboration and accountability to the board.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| DIS | walt disney company | 114.53 | +0.70 | +0.61% |
Disney has argued that director nominees by Tryon and another activist investor “do not have the qualifications or experience to serve as effective Disney directors and may impede the company’s significant progress.” Activist investors are pushing back.
The company also told investors that its “strategic transformation is successful” and that its board and management team are “delivering on our commitment to creating superior and sustainable shareholder value.”
February 9, 2023 at Walt Disney Studios in Burbank, California. (Eric Thayer/via Bloomberg/Getty Images)
In addition to Lucas, others have supported Disney and its CEO in recent weeks, including the Disney family and JPMorgan Chase CEO Jamie Dimon.
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Proxy advisory firm Glass Lewis also recently advised Disney shareholders to support the entertainment giant’s position in board votes.
The proxy battle between Trian and Disney is expected to be resolved at the entertainment giant’s shareholder meeting in early April. The company, which controls $3.5 billion worth of Disney stock, also waged a proxy fight last year.
In the meantime, both Disney and Trian have issued notices to shareholders.
