The ongoing proxy battle between activist investors and Walt Disney Co DIS CEO Bob Iger has seen a significant show of support from filmmaker George Lucas and Ross Gerber, the CEO and President of Gerber Kawasaki.
What Happened: Ross Gerber, CEO and President of Gerber Kawasaki, expressed his support for Iger, citing the recent successes of Disney, including the addition of Taylor Swift to the platform and a new deal with ESPN for college sports, in an interview with Bloomberg Technology.
Gerber said, “[Bob] is like one of the best CEOs in like America or maybe the world.”
Gerber, who is also a Disney shareholder, emphasized Iger’s leadership and the positive impact he has had on the company’s business. He also mentioned that most people, including George Lucas, support Iger, except for activist investor Nelson Peltz.
When asked about the performance of Disney’s streaming business, studios, and parks, Gerber expressed confidence in the company’s direction, particularly in the wake of a significant reduction in spending on streaming and content production in Hollywood.
He also touched on the topic of Iger’s successor, stating that he is unsure of a replacement due to Iger’s exceptional leadership and physical condition.
Why It Matters: George Lucas’s support comes at a crucial time for Disney, as the company is facing a proxy battle with activist investors. Lucas, the creator of the Star Wars franchise, is a significant figure in the entertainment industry, and his endorsement of Iger could potentially sway other shareholders.
Disney has been making strategic moves to revitalize its business, including a recent studio overhaul to counter a box office downturn, as disclosed by Iger during an investor conference Q&A.
Despite the challenges, the company has received support from influential figures within the industry, such as the grandchildren of Disney’s founders, who have criticized and opposed the activist investors challenging the company’s management.
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