Filmmaker and Hollywood legend George Lucas is throwing his support behind Walt Disney CEO Bob Iger within the bitter proxy battle between the corporate and activist investor Nelson Peltz.
Lucas, who received 37.1 million Disney shares as a part of Disney’s $4.05 billion purchase of Lucasfilm in 2012, is currently the biggest individual investor in the corporate, multiple sources confirmed to CNBC.
In a press release provided to CNBC, Lucas wrote:
“Creating magic is just not for amateurs. After I sold Lucasfilm just over a decade ago, I used to be delighted to turn out to be a Disney shareholder due to my long-time admiration for its iconic brand and Bob Iger’s leadership. When Bob recently returned to the corporate during a difficult time, I used to be relieved. Nobody knows Disney higher. I remain a big shareholder because I even have full faith and confidence in the ability of Disney and Bob’s track record of driving long-term value. I even have voted all of my shares for Disney’s 12 directors and urge other shareholders to do the identical.”
Disney has lined up plenty of high-profile endorsements in its battle against Peltz and his firm, Trian Fund Management, from the heirs of Walt and Roy Disney to JPMorgan Chase CEO Jamie Dimon.
However the support from the Lucas endorsement is essential, not only due to his role as Disney’s largest individual shareholder, but additionally due to his standing in Hollywood. Lucas wrote and created the “Star Wars” and “Indiana Jones” franchises, a number of the hottest movies in history, and he helped pioneer tools corresponding to digital film editing and computer-generated imagery.
Peltz has asked investors to nominate him and former Disney Chief Financial Officer Jay Rasulo to the board at its annual general meeting on April 3. Amongst other things, Peltz desires to overhaul Disney’s traditional TV channels, which he thinks have been a shrinking business.
Iger, meanwhile, has been attempting to streamline the sprawling media company to rein in spending and make its Disney+ streaming platform profitable. Iger has instituted broad restructuring, including hundreds of layoffs.
