Walt and Roy O. Disney's Grandchildren throw their support behind Bob Iger and the Disney board

Mar 01, 2024 in "The Walt Disney Company"

Posted: Friday March 1, 2024 7:25am ET by WDWMAGIC Staff

In a display of solidarity and commitment to The Walt Disney Company's heritage, the grandchildren of both Roy O. and Walt Disney have come forward with public letters to the company's shareholders expressing their support of CEO Bob Iger and the Walt Disney Co. board of directors.

 

In their letter, the grandchildren of Roy O. Disney speak about the company's origins, emphasizing Disney's unique legacy of creating magical experiences. They voice strong support for Disney CEO Bob Iger and the current leadership, warning against the dangers posed by activist investors who, they argue, lack a genuine understanding and appreciation of Disney's core values. They describe activist investors as "really wolves in sheep's clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them."

Echoing this sentiment, the family of Walt Disney, including Walter Elias Disney Miller, Tamara Diane Miller, Jennifer Miller-Goff, and Joanna Sharon Miller, issued a letter supporting the company's management and Board of Directors. They specifically oppose the nominations by Nelson Peltz, which is a clear stance against changes they believe could undermine the company's integrity. They commend Bob Iger for balancing creativity with profitability, acknowledging the company's ability to adapt and thrive even in challenging times.

The letters of support from the Disney family come at a time when The Trian Group, which owns more than $3 billion in shares of The Walt Disney Company, is urging Disney shareholders to withhold votes for board members, Mr. Froman and Ms. Lagomasino, and vote to appoint its own Nelson Peltz and former Disney executive Jay Rasulo to the board.

You can read both letters in full below.

An Open Letter to Shareholders of The Walt Disney Company

As the grandchildren of Roy O. Disney, we grew up with a front row seat to the magic that fuels the remarkable company he and his brother Walt Disney built together. We spent our childhoods on the studio lot watching movies get made. We explored Disneyland with the creative geniuses behind the happiest place on earth. We saw the passion Walt and Roy had for creating life-long memories for children and families, and the infectious joy they got out of the work they did.

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.
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

To the Shareholders of The Walt Disney Company,

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.

Sincerely,
Walter Elias Disney Miller
Tamara Diane Miller
Jennifer Miller-Goff
Joanna Sharon Miller
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MisterPenguin11 hours ago

The difference between the two valuations is about $12B. So, even using the highest valuation, Disney would be on the hook for paying Comcast another $3B. It could also mean nothing more if the third valuation was at the minimum.

ToTBellHop11 hours ago

I’d be happy to independently value it for them and I only cost $50.

DCBaker11 hours ago

Reuters reports Disney and Comcast are now in talks to hire an investment bank that will independently value Hulu. NEW YORK, May 6 (Reuters) - Walt Disney (DIS.N),and Comcast (CMCSA.O), are seeking to hire a financial adviser to resolve a dispute over how to value the 33% stake in streaming platform Hulu that the former will acquire from the latter, according to people familiar with the matter. The move is in accordance with a deal the companies struck for Hulu last year. It is an action their contract foresees if JPMorgan Chase (JPM.N), which provided a fairness opinion on Hulu for Disney, and Morgan Stanley, which provided such an opinion for Comcast, are too far apart in their valuation assessments. JPMorgan has valued Hulu for Disney at close to $27.5 billion, which is the floor valuation for Hulu that the companies had set as part of their 2019 "put-call" agreement, one of the sources said. Morgan Stanley valued Hulu for Comcast at more than $40 billion, another source said. Disney and Comcast are now in talks to hire an investment bank that will independently value Hulu, the sources said, requesting anonymity because the matter is confidential. Hulu, which boasts popular original titles such as "Shogun", "The Bear", "Prey", and "Only Murders in the Building", had 49.7 million subscribers at the end of Dec 2023, representing a growth of 2% from the September quarter. In remarks at a Goldman Sachs conference last year, Comcast CEO Brian Roberts called Hulu a "scarce kingmaker asset" that is "way more valuable today" than when the deal was initially struck. Disney has already completed the addition of Hulu to its Disney+ streaming service, which is home to titles such as "Moana" and "Frozen." In regulatory filings last year, Disney and Comcast had outlined that if the valuation reached by their two banks were within 10% of each other, a deal will be consummated at a valuation that is the average of the two appraisals. Since the two appraisals are more than 10% apart, Comcast and Disney are jointly in talks to pick a third bank to do an independent appraisal, the sources said. As per the terms of the agreement, if the third appraisal is closest to the valuation of that produced by Disney's bank, the average of those two valuations will be the value at which the deal gets done. Similarly, if the third appraisal is closest to the valuation of that produced by Comcast's bank, the average of those two valuations is the value at which the deal gets done. If the average of the third appraisal is below $27.5 billion, the final valuation will be $27.5 billion. In 2019, Disney and Comcast signed an agreement for Hulu with an option strike date of January 2024, after Disney's $71 billion takeover of Fox's assets, including its minority stake in Hulu. The deal gave Disney majority control over Hulu as it already owned a 33% stake in the streaming service. Comcast retained its stake in Hulu at the time believing that its value would increase significantly by 2024. In November last year, Disney agreed to take full control of Hulu and pay Comcast at least $8.6 billion for the remaining 33% stake, after Comcast triggered the deal as part of the 2019 agreement. https://www.reuters.com/business/media-telecom/disney-comcast-seek-advisor-resolve-hulu-valuation-sources-say-2024-05-06/

Sirwalterraleigh18 days ago

I’ve got a boot ready for the kick

JoeCamel18 days ago

They wanted to throw Bob out the window? ;) :cool::hilarious:

Sirwalterraleigh18 days ago

What are you two enlightened Renaissance men carrying on about?

Casper Gutman18 days ago

Turns out the anti-Peltz crowd did exactly what they said they would - they went back to criticizing Iger and skeptically discussing potential expansion plans.

James Alucobond18 days ago

I was promised gloating from the anti-Peltz faction but found only endless self-indulgent wallowing from those who wanted to defenestrate Iger at any cost. 🤷🏻‍♂️

Casper Gutman18 days ago

Come on, Penguin, let them have their fun while everyone else moves on.

MisterPenguin18 days ago

Thank you for letting us know how wrong a Hollywood trade magazine is!!

Sirwalterraleigh18 days ago

I’m having DoorDash delivery a really spensive espresso that morning to listen to it bright and early ☕️

monothingie18 days ago

But D+ will be declared "profitable" at the next Q's earnings report!

Sirwalterraleigh18 days ago

…anyone surprised by this haven’t been watching closely enough

HauntedPirate18 days ago

Bob: "I know what will fix everything - Move the next shareholder meeting time to first thing in the morning. And make sure I get to emphasize how well DTC is doing. Because I'm a creative and visionary genius! Now, when am I going to get that lifetime contract?"