Disney Grandchildren Say Activist Investors ‘Must Be Defeated’

Disney isn’t just doing battle with Florida Governor Ron DeSantis.

©Disney

The company is also in the middle of a proxy battle with an activist investor, Nelson Peltz, who is petitioning to get a seat on The Walt Disney Company’s Board of Directors. Trian Partners recently nominated Peltz to be elected to the Board, but the current board does not endorse him. Well, it seems that some people very close to Walt Disney himself also do not support Peltz and his efforts.

Peltz has been very vocal about some of Disney’s decisions, going back to the decision to buy Fox in 2019, calling it “poor corporate governance.” As you may suspect, he opposed Bob Iger’s return to the company as CEO in 2022. Well, a new group has come out in support of Bob Iger as the company’s head — the grandchildren of Walt and Roy Disney.

©New York Times Nelson Peltz of Trian Partners

According to The New York Times, the grandchildren of Walt and Roy Disney, who founded the company together in 1923, have come together to publicly oppose Nelson Peltz and his efforts to seat himself on the company’s Board of Directors. All nine grandchildren are publicly in agreement about this, including Abigail E. Disney, who has often criticized the company, most recently about pay inequality.

Cinderella Castle at Magic Kingdom

Roy P. Disney, 66, grandson of Roy Disney, said, “These activists must be defeated.” He went on to say that they don’t care anything about “preserving the Disney magic” and only want to succeed in “stripping it to the bone to make a quick profit for themselves.”

He and Abigail, along with their two other siblings, Susan Disney Lord and Tim Disney, wrote a letter to Disney shareholders, referring to Peltz and other activists as “wolves in sheep’s clothing.” They also wrote about their support of Iger, saying that it’s important that Iger, his management team, and Disney’s board of directors not be “disrupted.” Walt Disney’s grandchildren made similar statements.

©Disney | Walt Disney Company Headquarters

In an email, Iger responded, “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

Peltz, along with others who are campaigning to get seats on Disney’s board, have criticized the company for its lowering stock prices. However, after Disney reported strong earnings in its Q1 2024 earnings report and call, the company’s stocks rocketed back up.

Peltz has often criticized Disney’s streaming profitability, although Iger seems to feel confident that Disney is well on its way to making streaming profitable by the end of the year. The company is set to hold its annual shareholder meeting on April 3rd, so expect things to get more heated then.

Stay tuned to DFB for more.