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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GhostHost10001 minute ago

Black Friday is coming up. Bob needed to go shopping I guess. $42.7mil. Wow

Brian5 minutes ago

Looks like Bob just cashed in. https://blogmickey.com/2024/11/bob-iger-sells-42-million-worth-of-disney-stock/

Comped1 day ago

Most divestures from the Fox purchase were forced by the EU or other governments to allow the deal to go through in the first place (except for A&E Europe which was a bad move on the EU's part IMO, as it was a rather useless divestiture). I'm sure Disney would have rather kept the lot (at least for a while). Disney owning Sky likely would have had very interesting ramifications for ESPN stateside (PL rights would have been nearly certain), but would have put a good amount of strain on Disney's profit margin.

HauntedPirate1 day ago

Of course it is! Just ask Bob, he'll tell you so.

monothingie1 day ago

They raised the bid by $3.2B. That's a big difference from the $20B that Comcast drove up the price for Disney to purchase 21CF. You seem to gloss over the $20B premium paid on top of the original deal as it was insignificant. I'm not sure how you get $40B from divestitures when it seemed to only total $15B with the majority of that coming from the sale of the Fox RSNs. This is misleading. The "General Audience" (Adult) programing is what Hulu brought to table and D+ was never intended to go down that route. You keep going back to the timeline developed at launch that D+ would be profitable by 2024 but there is so much context missing from that assessment. 1. There was never consideration of relying on an ad supported model. 2. There was never consideration of complete HULU integration. 3. The expected profits were going to be many times what is being realized now or even being forecast. 4. There was no expectation that the losses would have been so large. (They were basically blowing up a fleet of DCL cruise ships a year at the height of their losses.) D+ main challenge is going to be user churn and loss of retail subscribers via the constant price increases. If Bob's hot mic comment about ad-tier subscribers is accurate, then they are apparently underperforming in this subscriber segment. The "success" of DTC for Disney has not come from putting out a good product with good content, but rather through acquisitions, price increases, password crackdowns, and introducing an ad-supported tier. Like the experiences segment which showed growth mostly through price increases, is that truly a sustainable path?

MisterPenguin1 day ago

Comcast did drive up the cost of Fox. But Disney returned the favor and bid up the cost of Sky, which Comcast bought. And now that Sky was overpriced, Disney sold their share of the overpriced Sky to Comcast. In the end, after buying Fox, Disney got $40M out of divestitures, drastically reducing the cost of Fox. Disney kept Fox out of competitors' hands. And transformed D+ content from "family" to "general audience" allowing them to set a new sub target after blowing through the first target in a manner of months. And Disney met their goal of when D+ would be profitable. In a competitive market, you're not going to have fantastical win after win. Even Netflix, the front runner, had a live-action streaming debacle. But that's not going to sink Netflix. And Disney isn't going to sink with several minor setbacks.

Brian1 day ago

Two years ago tonight, Iger was abruptly reinstated as CEO and Chapek was relegated to the Disney archives.

BrianLo1 day ago

There was immediate divestments of 30.5 billion dollars for the bigger ticket items. Many of them contingent and occurred with the purchase. Sky before. Hotstar most recently. I cannot find accessible numbers for True(X), Fox Next, TeleColombia, FoxSports Mexico, A&E Europe, Argentinian FoxSports. So in essence Disney is saddled with a 30-35B end price. Not 71. Hulu is worth 8.9 (at least). As for the other 20-25B, that’s the rub. FX, Searchlight, 20th century are the main keynotes. Along with their back catalogues and IP. They basically bought a general entertainment catalogue and production arm; which is not nothing. It’s actually a fairly strong general entertainment based arm. I’m not disagreeing that Bob was about to get an actual good deal and Roberts drove it up.

coffeefan1 day ago

Since we're about to enter a new era of M&A Disney should consider buying SquareEnix. It would be such a great fit.

BrianLo1 day ago

That’s what I’m referring to. Comcast bid Disney up 18B and then subsequently bought out Sky from them and paid at least 8.5B too much for it in the process. It’s kind of a wash for who overpaid more when they split the difference, but Roberts certainly doesn’t come off smart, with the better asset, nor laughing.

monothingie1 day ago

So that Bob could overpay by $20B. This was personal for Bob and he was not going to let Brian steal the largest deal of his career. Brian knew that and played Bob to over pay. Other than the 1/3 of Hulu from Fox can you let me know what they got that is currently profitable for them and justified the $71B spent?

Stripes1 day ago

Didn’t Comcast bid $65 billion? So you’re saying Comcast would have overpaid by $14 billion? I think, in the end, Disney has gotten their money’s worth out of 21CF. And due to the strength of those assets they are uniquely well positioned in the future.

Stripes1 day ago

ARPU went up by 2.66% for domestic Disney+ in FY24. Rupert got a lot more Disney stock and became Disney’s 2nd largest shareholder which could very well come in handy over the next 4 years.

monothingie1 day ago

This dates back to before the Hulu buyout. This was during the bidding war for 21CF where Disney overpaid by close to $20+B.