The embattled Disney boss continues to win high-profile support as the power struggle within one of the world’s best-known companies reaches its crescendo.
Chief Executive Bob Iger’s leadership of the entertainment giant has come under heavy fire from activist investors, including billionaire Nelson Peltz, whose daughter Nicola is married to Brooklyn, the eldest son of David and Victoria Beckham.
But he has attracted big supporters to his camp, with Star Wars creator and director George Lucas being the latest big name to defend the Disney veteran.
Others include JP Morgan boss Jamie Dimon and family members of Walt Disney himself.
“Creating magic is not for amateurs,” said Lucas, who received 37.1 million Disney shares as part of his £3 billion takeover of Lucasfilm in 2012. “When Bob is recently returned to the company during a difficult time, I was relieved. No one knows Disney better.
Feel the Force: Star Wars director George Lucas (left) speaks out in support of Disney CEO Bob Iger (right)
Lucas’ support was described as a “huge win” for Iger, who returned to the role of chief executive in November 2022 after his successor failed to make his mark.
But if the return of Iger, who led Disney for 15 years until 2021, was welcomed at the time, it was far from simple, with a campaign led by Peltz and his company Trian Fund Management and Blackwells Capital which has reached its climax. next month.
While both hedge funds say Disney has lost its luster and bankrupted its shareholders, Peltz is pushing for two seats on Disney’s board, while Blackwells is seeking three.
The proposals will be voted on by shareholders at Disney’s annual meeting on April 3. In his defense, Iger was able to rely on some very famous faces.
Last week, Dimon threw his support behind Iger, describing him as a “top-notch executive and exceptional leader.”
“Putting people on the board unnecessarily can harm a company. I don’t know why shareholders would take this risk,” the bank chief said.
And Hollywood legend Lucas this week threw his support behind Disney’s 12 current directors and urged other shareholders to do the same.
“I remain a significant shareholder because I have full confidence in Disney’s ability and Bob’s ability to generate long-term value,” he said.
Analysts have highlighted the importance of that star power in the boardroom struggle when it comes to courting retail investors, who make up about a third of Disney’s shareholder base.
Wedbush analyst Dan Ives said, “Lucas supporting Iger and the board is a huge win. This battle continues to unfold but the winds are changing for Iger in the right direction.
Taking the Mickey: Disney Chief Executive Bob Iger’s leadership of the entertainment giant is under heavy fire from activist investors, including billionaire Nelson Peltz.
Jessica McDougall, partner at Longacre Square Partners, said: “Supporting both sides of a proxy fight – for the company or the activist – encourages other shareholders to take a closer look at personal, financial or business ties. behind this support. ‘
Peltz, who owns a £2.4 billion stake in the company through Trian, is also grappling with dissidence from the Disney family.
The grandchildren of Roy Disney, who founded Disney Brothers Cartoon Studio with Walt in 1923, last month called investors “wolves in sheep’s clothing” who were seeking to destroy the company.
Iger also defended recent performance and emphasized his intention to return Disney “to a place where we are consistently generating shareholder value.”
He said the activists were “major distractions” and were “exactly what we don’t need”.
Disney recently reported a stronger-than-expected final quarter of 2023.
Yet its streaming business continues to be loss-making as it expands and attempts to keep pace with tech rivals Netflix and Amazon Prime Video.
This is not the first time that Peltz has attacked Disney bosses.
In January last year, Peltz described Disney as “a company in crisis” with “self-inflicted” problems.
New York-based Trian attacked the company’s reckless spending and “exaggerated” executive compensation.
Peltz is a renowned activist, having worked his way onto the boards of Procter & Gamble and Unilever – and built up big stakes in Mondelez and Heinz.
Whatever the outcome, this is a boardroom battle that grips corporate America — and many others around the world.
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