Disney Heirs Picks a Side in the Iger Battle
The heirs to Walt and Roy Disney have chosen a side in Bob Iger’s fight for control.
Here’s what just happened and who the Disney scions have picked.
What’s Happening?
Those of you reading MickeyBlog are aware of the ongoing attempt by billionaire Nelson Peltz to become a Disney Board member.
Former Marvel Entertainment owner Isaac Perlmutter acquired many shares of Disney stock when he sold the comic book business.
Nelson Peltz
Perlmutter has ceded control of those shares to Peltz, who wants to take two seats on the Board of The Walt Disney Company.
Should that happen, Perlmutter would agitate for other members to vote with him and his chosen partner, Jay Rasulo.
Source: AP
In this scenario, Rasulo is little more than a puppet with some name recognition for Disney shareholders.
Peltz and Perlmutter, two powerful people with grudges against Disney CEO Bob Iger, would decide how to proceed.
Realistically, Iger and Chairman of the Board Mark Parker tightly control the other Board seats.
The Walt Disney Company
So, there’s little short-term danger to the company, even if Peltz and Rasulo join the Board.
The danger stems from the precedent of the goals of the two billionaires.
One is to strip Bob Iger of power. The other is a terrifying enough proposition that the Disney family has just gotten involved.
Nine different grandchildren of Walt and Roy Disney just took a stand in this battle, and their choice is quite surprising.
The Disney Family Chooses a Side
Photo:
Walt & Roy Disney ca. 1923 (Disney)
Over the years, MickeyBlog has chronicled several instances of one particular grandchild, Abigail Disney, speaking ill of Iger.
Abigail Disney believes that the company isn’t doing enough to improve life for Cast Members and has said as much. Repeatedly.
What we’ve learned this week is that there’s a difference between philosophical difference and pragmatism.
Photo: Hollywood Reporter
While Abigail Disney thinks Iger could do more, she knows his heart is in the right place.
The Disney family holds…different perceptions of Peltz and Perlmutter. They also own a great deal of stock.
Ergo, their opinion in this matter carries a fair amount of weight.
Photo: townandcountrymag.com
Now, they’ve chosen a side in this battle, and they’re squarely on Team Iger.
According to a New York Times article, the grandchildren “publicly lined up behind Mr. Iger and the current Disney board on Thursday.”
We’ll remember Leap Day 2024 for a while, as it has made allies of rich, powerful people who often clash.
Photo: D23
Remarkably, the Disney family demonstrated its support in the strongest possible fashion.
Roy P. Disney, the son of Roy E. Disney, has taken an entirely different approach from his dad.
You may recall that Roy E. Disney himself participated in an activist investor feud against former CEO Michael Eisner.
Photo: Disney
Conversely, Roy P. Disney is quoted as saying, “These activists must be defeated.”
The grandson of Roy O. Disney continues, “They are not interested in preserving the Disney magic, but stripping it to the bone to make a quick profit for themselves.”
What’s At Stake in This Fight
Photo: Lucasfilm
What Disney describes is the doomsday scenario in play here.
Under Iger’s leadership, Disney has acquired the most lucrative IP in the world.
Many short-sighted investors seek to follow in the footsteps of Kirk Kerkorian, someone who once stripped MGM for parts.
Marvel
If something like Pixar, Star Wars, or Marvel became available on the open market, what do you think it would be worth?
The Disney family understandably fears the possibility of Peltz and Perlmutter leading the charge for this sort of corporate raiding.
While Peltz’s investment firm, Trian Partners, refuted this claim, the Disney family described them as “wolves in sheep’s clothing.”
Romain Maurice/Getty Images for Carbone Beach | Dia Dipasupil/Getty Images
Peltz was already having a rough week, as he is Chairman of the Board at Wendy’s.
Maybe you heard about the ridiculous surge pricing plan that Wendy’s pitched and then quickly recanted.
That’s the kind of reckless greed you could expect if Peltz gained a voice at Disney, and the family knows this fact.
HEIDI GUTMAN/CNBC/NBCU PHOTO BANK/NBCUNIVERSAL/GETTY IMAGES; SLAVEN VLASIC/GETTY IMAGES
For this reason, they offered a full-throated endorsement of Iger and Disney’s current plans.
“It is imperative that the strategy Bob Iger, his management team and the board of directors have implemented is not disrupted.”
Abigail Disney took the extraordinary step of commenting:
“I have my differences with Bob Iger, but I know for a fact that the worst thing that could happen to the company is Nelson Peltz.”
Walt Disney’s Family Comments
Photo: D23
Every quote thus far has come from the grandchildren of Roy O. Disney.
The next one comes from the living descendants of Walt Disney himself.
His grandchildren published a joint message on the topic. It’s as clear-cut as you’ll ever see.
Photo: Attractions magazine
“As the family of Walt Disney, we support the Walt Disney Company management and its board of directors, and oppose the nominations put forth by Nelson Peltz.
“There have been challenging times, but this current management has adjusted and grown through those challenges.”
Photo: Disney
One Disney granddaughter added:
“Disney started as a family company, and even though it has grown into such a big global business, Disney is still about family.
“My mother would be appalled by these activists’ attempts to force their way into the company.”
(Charley Gallay / Getty Images for Disney)
Ever the opportunist, Iger leaned into this unexpected act of kindness from the Disney family, which is more prone to criticize him as a rule.
He stated, “I approach every day at Disney with a deep sense of respect for everything Walt and Roy created, and it is incredibly meaningful to have the support of their families.
“We are committed to protecting their legacy as we chart Disney’s path ahead.”
Disney’s CEO knows the Disney family had no need to do this.
Instead, they are banding together to prevent outsiders from ruining the legacy of their grandparents.
Image: Disney
While various members may have personal problems with aspects of Iger’s decision-making, all of them know he’s trying.
This was exactly the sort of break Iger needed in his protracted battle with Peltz.
We will find out on April 3rd. This latest turn cannot help Peltz, though.
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