In a significant show of support for Disney and its leadership, George Lucas, the creator of the Star Wars franchise and the company’s largest individual shareholder, has voiced his endorsement of the media giant’s board and CEO Bob Iger amid an ongoing proxy battle with activist investors.
Lucas, who sold Lucasfilm to Disney in 2012 for $4 billion, expressed his confidence in the company’s ability to “create magic” under Iger’s guidance, urging fellow shareholders to reject the bids by activist groups to secure seats on Disney’s board.
“Creating magic is not for amateurs,” Lucas stated in a statement released on Tuesday. “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.”
The renowned filmmaker, who received 37.1 million Disney shares in the Lucasfilm acquisition, further emphasized his trust in Iger’s leadership, stating, “When Bob recently returned to the company during a difficult time, I was relieved. No one knows Disney better.”
Lucas, with an estimated net worth of $7.9 billion, according to the Bloomberg Billionaires Index, declared his unwavering support for Disney’s current board, saying, “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.”
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The proxy battle has pitted Disney against activist investor Nelson Peltz’s Trian Partners and investment firm Blackwells Capital, both seeking board representation to influence the company’s strategic direction. Peltz has argued that Disney’s stock has underperformed and that the company needs to adopt more urgent strategies to drive sustained and profitable growth.
Lucas’s statement, referring to “creating magic” as not being for “amateurs,” may be a subtle jab at Peltz, who has admitted to having no media experience, aligning with Disney’s stance that the activist investors lack the appropriate expertise to contribute effectively to the company’s board.
The filmmaker’s endorsement comes as Disney has garnered support from other influential voices, including the grandchildren of Walt Disney and his brother Roy O. Disney, who issued open letters criticizing the activist investors’ campaigns and throwing their support behind Iger and the current board.
Additionally, independent proxy voting advisory firm Glass Lewis recently recommended that Disney shareholders vote for the company’s 12 director nominees, further bolstering Disney’s position in the proxy battle.
With the annual shareholders meeting scheduled for April 3, the clash between Disney and the activist investors is expected to intensify in the coming weeks. Lucas’s powerful statement, however, serves as a resounding vote of confidence in Disney’s leadership and their ability to navigate the company’s future successfully.
