Disney Heirs Line Up Against Activist Investors
It’s a classic Disney movie plot: A family comes together to fight an enemy.
Only this time it is happening in real life, with the grandchildren of Walt and Roy Disney, who founded the company in 1923, joining forces to oppose Nelson Peltz, the activist investor who is waging a proxy battle for board seats. The heirs — nine in total, including Abigail E. Disney, who has at times been a harsh critic of Robert A. Iger, Disney’s chief executive — publicly lined up behind Mr. Iger and the current Disney board on Thursday.
“These activists must be defeated,” Roy P. Disney, 66, said by telephone. “They are not interested in preserving the Disney magic, but stripping it to the bone to make a quick profit for themselves.”
In a statement, a spokesperson for Trian Partners, the investment firm which Mr. Peltz runs, said: “We love Disney and recognize building on its rich history of delighting loyal fans is essential to its future success. Trian invests in great companies like Disney and helps them grow and thrive for the long term — and we have the track record to prove it at companies like P&G, Heinz and Mondelez.”
Mr. Disney, a grandson of Roy Disney, has three siblings: Abigail, Susan Disney Lord and Tim Disney. In a letter to Disney shareholders, which was viewed by The New York Times, they call Mr. Peltz and a handful of other activist investors encircling Disney “wolves in sheep’s clothing.”
“It is imperative that the strategy Bob Iger, his management team and the board of directors have implemented is not disrupted,” the letter says. Their cousins, grandchildren of Walt Disney, sent a letter of their own echoing those sentiments.
