Star Wars visionary George Lucas has thrown his support behind Disney CEO Bob Iger as the company gears up for its annual meeting amid a proxy battle with activist investors.
In a statement released on Tuesday, Lucas expressed his unwavering confidence in Iger, emphasizing the significance of experience in “creating magic” within the entertainment industry. Lucas highlighted his admiration for Disney’s iconic brand and Iger’s leadership, noting his satisfaction with the company’s trajectory since the acquisition of Lucasfilm over a decade ago.
Following the sale of Lucasfilm to Disney in 2012, Lucas became one of Disney’s largest individual shareholders, holding 37.1 million shares and receiving $2.2 billion in cash as part of the deal, which valued Lucasfilm at $4.1 billion.
Lucas praised Iger’s leadership during challenging times, emphasizing his deep understanding of Disney’s operations and his track record of driving long-term value. He urged fellow shareholders to support Disney’s current board of directors, underscoring his full faith in the company’s future under Iger’s guidance.
The statement comes ahead of Disney’s shareholder meeting on April 3, where investors will cast their votes for board members. Iger is facing opposition from activist investors Nelson Peltz’s Trian Fund Management and Blackwells Capital, who are vying for seats on the board. The investors have criticized Disney’s performance in streaming, stock market performance, and the absence of a clear succession plan.
In response to the proxy challenge, Disney has engaged in unconventional tactics, including utilizing a wooden puppet, Pinocchio, in a presentation titled “Correcting Trian’s Fiction with Facts.” Additionally, Disney produced a video featuring Donald Duck’s uncle Ludwig Von Drake to educate shareholders on voting procedures.
Lucas’s endorsement carries significant weight, given his substantial holdings in Disney and his influential status in Hollywood, owing to the enduring popularity and profitability of the Star Wars franchise. His support aligns with other major shareholders, including Walt Disney’s heirs and investment firm ValueAct Capital.
With Lucas’s backing, Iger and Disney are bolstered as they navigate the proxy fight and seek to secure shareholder confidence in the face of activist investor pressure.
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