Walt Disney’s Grandkids Back CEO Bob Iger & Board in Proxy Battle
The grandchildren of Walt Disney and his brother Roy O. Disney sent open letters to shareholders in support of CEO Bob Iger and current company’s Board of Directors, in response to activist investors engaging in proxy fights. This shares the letters, offers a quick(ish) summary of the ongoing battle for the board, and our thoughts about the family’s input.
This comes ahead of the Walt Disney Company’s 2024 Annual Meeting of Shareholders on April 3, 2024, and as all of the various parties prepare for battle, proxy style. For its part, Disney has sent a letter to shareholders pleading its case as to why the current board has the right strategy for success, explaining how they’ve made substantial progress against objectives to make the business more efficient and effective. The company has also launched the website VoteDisney.com, which details how to vote (and not vote) via a fun video by Ludwig von Drake.
Trian Group has its own website, RestoretheMagic.com, and represents the most viable challenge to Disney thanks to the higher profile of its campaign as well as the number of shares held by Peltz, Trian, and its allies. The fact that Disney has felt the need to fend off the challenge with its own website and leaning on the star power and expertise of Ludwig von Drake suggests the company is taking it seriously.
The most interesting part about Trian’s challenge is the push for former Disney Parks Chair Jay Rasulo to have a board seat. I don’t necessarily want that to happen, but it’s an intriguing idea. We already discussed a potential reappraisal of the much-reviled Rasulo, and perhaps that’s the wrong call. What we do want is more people with experience in Parks & Resorts (or who at least take the division seriously), especially if the company is actually going to spend $60 billion over the next decade to expand and enhance Walt Disney World and Disneyland.
Rasulo was there at the start of the last development boom for Walt Disney World, and saw firsthand how mutually beneficial it was for the company’s growth and guests. Otherwise, I’d agree that there isn’t much there there when it comes to the vision that Peltz has articulated for Disney’s future. At least it has kept Iger and co. on their toes, I guess, and pushed them to move expeditiously in fixing the problems that ail Disney.
That probably would’ve happened anyway, though. But Iger has moved with a sense of urgency and purpose in the last year and is making active efforts to right the ship after the disastrous Chapek regime and, to be fair, missteps at the end of the first Iger tenure.
Then there’s Blackwells Capital, which strikes me as the “you’re not serious people” portion of the proxy fight. I have a hard time believing Blackwells would even be doing anything at all–or at least, anything newsworthy–were they not riding on the coattails of the prolific Trian Group challenge.
For one thing, Blackwells only owns or controls about $15 million worth of Disney stock, which is probably a lot more than anyone reading this (even our biggest fan, Bob Chapek) but still pretty insignificant in the grand scheme of things. For reference, Trian owns or controls about $3 billion worth of shares, including Peltz and those owned by former Marvel chairman Ike Perlmutter.
For another thing, the proxy statement and ‘pitch’ being made by Blackwells is, frankly, nonsense. It talks about splitting Disney into 3 companies, wants theme parks to be treated like regular ole commercial real estate, and contains a bunch of gobbledygook about “Disney’s Physical, Spatial Computing, and AI-Driven Experiences.” To be entirely honest, the Blackwells campaign sounds as if it were written by ChatGPT, so I guess the push for more AI checks out there.
Anyway, that’s the backdrop against which this proxy battle is taking place, with new twists and turns and pleas to shareholders on a seemingly daily basis. The latest of these, as indicated above, are separate letters from the grandchildren of Walt Disney and Roy O. Disney.
Let’s start with the Walt grandchildren letter to shareholders:
“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. The integrity in the name of Walt Disney has always been a priority to our family. Our mother — Diane Disney Miller, Walt’s eldest daughter — created The Walt Disney Family Museum to ensure that the history of her father’s life and those involved in the creation of his dreams would be honored and remembered. We still believe in this brand of integrity and storytelling.”
“Bob Iger has grown this company in a modern world, and he continues to maintain a balance of creativity and profit. It is still a company based on the desire to entertain and explore. There have been challenging times, but this current management has adjusted and grown through those challenges. We are never without gratitude and pride for our grandfather and being a part of this family, and we will always cherish the memories and the life that we had with him. With this gratitude, it matters to us what the company does and how Walt Disney is represented. As such, we support Bob Iger and The Walt Disney Company Board.”
The succinct letter by Walt Disney’s grandchildren ends be stating “we support Bob Iger and The Walt Disney Company Board.” It’s signed by Walter Elias Disney Miller, Tamara Diane Miller, Jennifer Miller-Goff, and Joanna Sharon Miller.
The grandchildren of Roy O. Disney addressed shareholders in a longer letter, sharing their background growing up as part of all things Disney and knowing that “From Mickey and Minnie, to Snow White and Mary Poppins, Disney is not a company that makes widgets – it makes magic. And it takes a special group of leaders with a deep respect and understanding for this tradition to develop the kinds of incredible experiences – whether in a theme park, at a movie theatre, or in your own home – that touch people’s hearts.”
Here’s the rest of the letter from the Roy grandchildren:
Bob Iger, his management team, and the Board of Directors are faithful to this magic. They understand that the longevity of The Walt Disney Company isn’t only the result of smart business decisions; it is rooted in the strong emotional connection Disney continues to forge with generations of people from around the globe.
We may not agree about everything, but we know that our grandfather would be especially proud of what Disney means to the world today. We also know that, like us, he would be very concerned by the threat posed by self-anointed “activist investors” who are really wolves in sheep’s clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them.
What concerns us most about these hedge-fund-backed opportunists is that they have little to no knowledge of what Disney truly means to people like you. They haven’t made any arguments for why they should be entrusted with the keys to the kingdom our family built. To the contrary, their “I alone can fix it” mentality makes clear that they are not interested in preserving the Disney magic, but stripping it to the bone to make a quick profit for themselves.
We’re old enough to remember the bitter episode four decades ago when another corporate raider, Saul Steinberg — who, as it so happens, was good friends with one of the current activists, Nelson Peltz — launched a hostile takeover attempt of Disney and threatened to break apart the company. He was defeated, much as these activists must be defeated today.
This is not a company of interchangeable parts. It is home to thousands and thousands of dedicated employees who share the same passion Walt and Roy had for bringing hope and happiness to people through the magic of storytelling. Disney is lucky to be led by people who are looking to the future while drawing guidance from our cherished past. As The Walt Disney Company charts its path forward, it is imperative that the strategy Bob Iger, his management team, and the Board of Directors have implemented is not disrupted by those motivated by nothing more than their own self-interest.
Disney stories are filled with heroes and villains. We know who the villains are in this story, and we know they cannot be entrusted with protecting this company’s rich legacy or guiding its bright future.
Sincerely,
Roy P. Disney
Susan Disney Lord
Abigail E. Disney
Tim Disney
Most notably here is that Abigail Disney is one of the signatories, and she has been an outspoken critic of Bob Iger and the current direction of the Walt Disney Company. Regardless of what you think of her, I think it speaks volumes that she’s siding with Iger while referring to the activist investors as “wolves in sheep’s clothing” and “villains.”
Admittedly, I have not been as averse to the Trian challenge as many Disney fans. My view has long been that, even if unsuccessful, it provides a catalyst for change within the Walt Disney Company (such as more investment in Parks & Resorts) and addressing problems that long-plagued the Iger regime (such as succession planning). A meaningful check and balance, if you will. It’s the fight itself that has had value for Disney fans, not Trian (or Blackwells, I guess) obtaining seats on the board.
For many shareholders of the Walt Disney Company, especially readers of sites like this one, these letters are going to be the moment that they’ve seen enough. That’s precisely my view. After watching the family’s documentary, Christmas with Walt Disney, on Disney+ and making several visits to the Walt Disney Family Museum, I know how important his family was to Walt.
The fight has by now fulfilled its role, and the family has spoken. Even though none of these grandchildren have day-to-day involvement with the company, it does still bear their family name and they undoubtedly want what’s best for it and their grandfathers’ legacies. It’s over.
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YOUR THOUGHTS
What do you think of the letters to shareholders by the grandchildren of Roy O. and Walt Disney? Agree or disagree with them? What about the “Restore the Magic” Campaign or Jay Rasulo as a board candidate? Think the proxy fights stand a chance of succeeding after this? Do you agree or disagree with our assessment?
I can’t believe how woke the company has gotten. I just got an email “celebrating” “women”s “her story” month. Where’s the man history month celebration? And they had the audacity of featuring Ahsoka, Moana, and Taylor Swift. Talk about Diversity Inclusion and Equality (DIE!). No wonder all of those “women” will be unsuccessful for Disney.
Worth noting that, unless I missed it, Trian does not propose going in a different creative direction or focusing less on “woke” content. Neither directly nor indirectly with different terms. From what I see, this is as close as they get: “Initiate a comprehensive Board-led review of studio operations and culture, including leadership, processes and workflow.”
Trian does (rightly, I might add) focus on profitability and cost-cutting when it comes to content.
Regardless of what you think of the movie, it’s absolutely nuts to me that live-action The Little Mermaid grossed ~$570 million at the box office, and whether it turned a profit is still in debate. The problem there is runaway spending on that and several other movies and Disney+ shows. Disney seemingly doesn’t know how to make movies for under $100 million anymore.
You’re right, I haven’t seen anything explicit either. I’d say It’s mostly inferred from the involvement of Ike Perlmutter.
But when I voted my shares, there were proposals for audits looking into a lot of the “woke” aspects of the company. So the changes are at least on the table, even if that isn’t an explicit goal from Trian Group.
More broadly, I think that steps taken to make the company more profitable will, by necessity, result in less “woke”.
Those proposals were by random shareholders. The Trian blue card abstained on all of them.
I do think the second two paragraphs of the other comment you just made were thoughtful and on-point, for what it’s worth. I don’t think Ike Perlmutter will be helpful from a creative direction (calling him an architect of the MCU feels like a stretch to me, but to each their own), but you’re absolutely right that he could help bring budgets back under control. And that’s half the battle!
Why is should the opinions of Abigail Disney, a virtue signaling trust fund baby ( reported net worth $ 150 million) a reliable voice for the future of Disney? All the recent Disney flops, and the destruction of the Star Wars franchise came from “ creatives “ posting their political views, instead of creating entertainment that has mass appeal.
It’s a bit surprising that none of the Disney grandchildren mentioned above have a role in the company or an honorary position on the board.
Personally I’m sick and tired of Iger and the entire “woke” Disney. I’m tired of seeing them invest billions of $ into the woke machine and then lose it. What is that one saying? Insanity is continuing to do the same thing, while expecting to get different results, (something like that….) Moreover, I’m a minority and it’s annoying to see people speak for me as if I’m a victim!
It’s racist to assume I deserve a handout because I’m a victim based on the color of my skin. God forbid I may have had a great upbringing, came from a good family, good neighborhood, and education. Of course I couldn’t have had that because I’m colored-right?!!!
Anyway, I’m very protective of the whole Disney brand thing because like everyone else on this blog I grew up with it all my life as a child and into adulthood. I even became a future designer for the company later on. I’ll always cherish my experience working for Disney! It truly was magical! Towards the end of my time there though, I started seeing it turn woke. I call the acronym “DIE” (diversity, inclusion, and equality), but really it’s the agenda of all Fortune 500 companies. People think it’s so wonderful, but in reality it’s racist, disingenuous, and inauthentic! If you want to win over people as a human being or in this case a company being Disney, you need to be organic/original, inventive/imaginative, filled with passion, and most of all sincere. If people know you’re sincere they pick up on it. They see it through you and your work. I love my Disney family because they all get it!!! Of course we want Disney to succeed, but too often we’ve seen them put money over the people that truly makeup the existence of Disney in the first place; (the workers and fans that have cherished the mouse.) Let’s Make Disney Magical Again!!!
Wow, was that well stated!!
I still can’t help to wonder if Iger is the “wolf in sheep’s clothing “. He has not exactly been great for the company, yet sure gets paid a ton. I also appreciate that the grand kids respect Walt Disney and the company he founded but their respect does not necessarily translate into expertise in running it or even understanding what may now be necessary to save this company from losing its focus and and independence. I’m still looking forward to when Iger and his team are long gone. He should have been gone years ago.
I appreciate your point of view, but not sure it is the immediate answer.
Like most, if not every person in this battle of leadership, Iger is out for his own interests. Each member of the board , each executive, each person on the Peltz side and numerous others are the same.
Everyone of them is a wolf in sheep’s clothing.
I really do not see an optimal quick change opportuinity here. But strategic INCREMENTAL moves will be needed SOON to change the course of the company in my view.
I hate corporate takeover scams. Iger stays.
As someone who bought shares of Disney instead of a DVC membership (possibly foolish, possibly not) the current construction of the board is not exactly doing a great job. The roller coaster of stock value in the last five years has caused some frustration in the stockholders. Not just the folks with millions of dollars of stock but people like me. Some of the questions on the proxy vote that the current board did not want to move forward are worth considering. Maybe a shake up is good thing.
as a current shareholder I agree with you.
Agreed.
I’m not sure why anyone is surprised that Abigail Disney supports the board. Her complaints focus on employee pay and work conditions. From what I’ve seen, she supports the company taking more political stances. So she would logically oppose the takeover attempt funded by more right-leaning investors.
I don’t think this will sway anyone who’s really unhappy with the direction of the company. It certainly doesn’t change my opinion at all. It actually makes me hopeful that maybe the Trian Group will win and Disney will start making good movies again!
Genuinely curious though – what makes you think the Trian Group will “make good movies” again?
I agree with Jim… to change the direction of moviemaking would take a decade if one considers the vast amount of people that would have to be replaced and the length of time it actually takes to put a movie together… Peltz and his group do not have that magic either.
But I do agree with Greg about Abigail Disney. I think her head and heart actually were/are in the right place if one considers that Disney is about people, those who work there and those that go to the parks, buy the march, and go to movies and view streaming.
I definitely don’t think that Peltz taking over guarantees that bettter movies are made. The biggest thing in his favor is that he has the backing of Ike Perlmutter who was one of the two architects of the MCU. Even if the overall quality of the movies doesn’t improve, I am sure that Perlmutter could get the budgets back under control at least.
But I actually think their “lack of magic” is the point. By way of analogy, think of the most avant-garde food booth at an Epcot festival. Where they’re serving some deconstructed concotion with vegan cheese and a dollop of some gelled sauce. It’s probably actually pretty good. But now imagine that the chef responsible for that one good dish is given complete control of the entire menu at Walt Disney World with no one to tell him “No”. Suddenly Be Our Guest’s menu is only escargot and Via Napoli only has cauliflower crust and Dole Whips are replaced with kombucha! And there isn’t a single hamburger or french fry to be found.
That’s what, from my perspective, has happened to Disney movies. In the great words of Dr. Ian Malcom, “[They] were so preoccupied with whether or not they could, they didn’t stop to think if they should.” Or put differently, great movies usually to break a few rules about storytelling. But breaking ALL the rules results in a terrible movie. Someone needs to be keep them reigned in, so we don’t keep getting the movie equivalent of a decomposing banana taped to a wall.
It also seems to me, unless I have missed it, that Peltz and his allies haven’t really laid out any details for how they plan to “restore the magic.” It’s easy to criticize the direction the company is taking, but you need to have concrete plans for what you would do differently.
I applaud the Disney Grandchildren for making such strong statements. they’ve seen enough! we’ll said. The shareholders need to do the right thing. i don’t agree with all the nickel and diming WDW is doing right now but, this group trying to get in will definitely make it worse.
I agree with the Disney grand children.wnough is enough they see the way there grand fathers dreams are falling apart and another group of investors trying for a hostile take over.
That would kill the legacy of what was built buy Disney and as far as the people trying to take over Disney and split them in to three different companies is just wolf’s in sheep’s clothing trying to make quick money
Yeah, my jaw dropped when I saw Abigail Disney’s name on there. Like you said, because of her very loud opposition toward the Iger regime, her signature on this means a tremendous amount. I hope someday to find out all that led to this letter. I know you’ve mentioned wanting a Disney Wars 2. Because Disney Wars 1 exists, I don’t think the company will ever allow the kind of internal access needed to make another book like that again, but man it would be nice.
Disney Wars is really the second book in the unfinished trilogy of Disney board takeover problems. The first book is Storming the Magic Kingdom. Great read and unlike Disney Wars Storming the MK has some folks to really root for. You’ll come away with a renewed respect for Roy Jr.
lol, if they want someone to run this company into the ground. I’ll do it for less than Iger. I don’t understand what this man has over all of ya. lol “activist investors” what about the” activist” in power now, you know, the ones that that tuned Star Wars, and IP bought to cater to boys into a bastion for feminist talking point.. The sheer amount of money they have pissed away for what exactly? Where is this audience? Where are the people they are carting to? There is a whole cast of diverse people who feel the way I do. Whatever, this whole thing is nothing more than billionaires and their egos, running a company none of them built. I hope it all dies, and out of the ashes rises something or someone that can create some fun again, something we all can enjoy. These people surely can not.
From what you write, you consider it pandering to diversity. Then why raise that spectre about yourself?