Filmmaker and Hollywood legend George Lucas withdraws his support Walt Disney CEO Bob Iger in a bitter proxy battle between the corporate and activist investor Nelson Peltz.
Lucas, who received 37.1 million shares of Disney stock as a part of its $4.05 billion purchase of Lucasfilm in 2012, is now the biggest individual investor in the corporate, multiple sources confirmed to CNBC.
In an announcement provided to CNBC, Lucas wrote:
“Making magic is not for amateurs. When I sold Lucasfilm a little over a decade ago, I was thrilled to become a Disney shareholder because of my long-standing admiration for its iconic brand and Bob Iger’s leadership. When Bob recently returned to the company during a difficult time, I breathed a sigh of relief. Nobody knows Disney better. I remain a significant shareholder because I have full faith and confidence in Disney and Bob’s track record of creating long-term value. I voted for all of my shares of 12 Disney executives, and we urge other shareholders to do the same.”
Disney has secured a lot of high-profile endorsements in its fight against Peltz and his company Trian Fund Management, from the heirs of Walt and Roy Disney to JPMorgan Chase CEO Jamie Dimon.
But Lucas’ support is crucial not only due to his role as Disney’s largest individual shareholder, but in addition due to his position in Hollywood. Lucas wrote and created the Star Wars and Indiana Jones franchises, among the hottest movies in history, and helped pioneer tools reminiscent of digital film editing and computer-generated imagery.
Peltz asked investors to nominate him and former Disney CFO Jay Rasulo to the board on the April 3 annual general meeting. Among other things, Peltz desires to overhaul Disney’s traditional TV channels, which he believes are a shrinking business.
Meanwhile, Iger is attempting to streamline the operations of the growing media company to scale back expenses and make sure the profitability of its Disney+ streaming platform. Iger carried out a broad restructuring that included hundreds of layoffs.
