A great deal has been made about Disney’s struggles at the box office of late, but those battles have become a possible war for The Walt Disney Company as the entertainment giant is fighting a proxy war on two fronts. Two different investment firms are making plays for seats on the Disney board, the most significant, Nelson Peltz’s Trian Group, has the support of former Marvel Entertainment head Ike Perlmutter, but Bog Iger and Disney just solidified a major ally in George Lucas.
This morning the man who sold Lucasfilm to Bob Iger and Disney in 2012 for $4 billion, and in doing so became a significant Disney shareholder, released a statement (via Deadline) in support of the current CEO, and urging all Disney shareholders to vote for the board of directors supported by Disney. In the statement, Lucas says that he has “full faith and confidence” in Disney under Iger. Lucas’ statement reads…
Creating magic is not for amateurs. When I sold Lucasfilm just over a decade ago. I was delighted to become a Disney shareholder because of my long-time admiration for its iconic brand and Bob Iger’s leadership. When Bob recently returned to the company during a difficult time, I was relieved. No one knows Disney better. I remain a significant shareholder because I have full faith and confidence in the power of Disney and Bob’s track record of driving long-term value. I have voted all of my shares for Disney’s 12 directors and urge other shareholders to do the same.
Needless to say, this is a pretty big deal for Disney and Bob Iger. George Lucas has remained largely quiet since he sold Lucasfilm to Disney. We know he occasionally visits the sets of Star Wars projects but he rarely does so with much fanfare. In fact, some comments Lucas has made in the past have indicated that he’s perhaps less than happy with the direction Star Wars has taken under Disney, but if anything a statement this much in favor of Bob Iger and Disney may hold even more weight because of that.
George Lucas’ words here are chosen carefully, the campaign started by Trian Group to argue that Nelson Peltz and former Disney executive Jay Rasulo should be added to the Disney board has gone under the name “Save the Magic.” Lucas’ opening line here seems to be a reference to that, saying that “the magic” is not something for those who don’t know what to do with it. Disney’s primary argument against Trian Group has been that Nelson Peltz has no experience in the various areas of Disney’s business, and is thus unsuitable for Disney’s board.
The Trian Group first made a play for a seat on the Disney Board a year ago but ended its fight early after Bob Iger returned as CEO and instituted a massive cost-cutting plan that resulted in thousands of Disney Cast Member layoffs and billions of dollars saved. However, Nelson Peltz now says Disney has not done enough, and that shareholder value is suffering due to poor decisions by Iger and the current Board of Directors.
Disney's Shareholders Meeting is set for April 3. On that day we'll know whether The 100-year-old Walt Disney Company will continue forward on its current path, or make a major change. George Lucas' support may very well sway some of those on the fence to support Disney and Lucas' shares will certainly help as well.
