An activist battle against media giant Walt Disney Co (NYSE: DIS) has several investors fighting to make changes at the company.
Disney may have secured a key win ahead of its April annual meeting with the force of George Lucas.
What Happened: A household name to many movie fans, Lucas founded Lucasfilm in 1971. The company, which includes the Indiana Jones and Star Wars franchises, was acquired by Disney for $4.05 billion in 2012.
The acquisition included cash and 40 million Disney shares, which helped make Lucas the largest individual shareholder in the media company.
Lucas is now pledging his support to Disney during the ongoing activist battle.
"Creating magic is not for amateurs. When I sold Lucasfilm just over a decade ago, I was delighted to become a Disney shareholder because of my longtime admiration for its iconic brand and Bob Iger's leadership," Lucas said in a statement shared by Variety.
Lucas said no one knows Disney better than Disney CEO Bob Iger.
"I remain a significant shareholder because I have full faith and confidence in the power of Disney and Bob's track record of driving long-term value. I have voted all of my shares for Disney's 12 directors and urge other shareholders to do the same."
Why It's Important: Disney's 2024 annual shareholder meeting will be held on April 3. Investors in the company will vote on a proposal from Nelson Peltz's Trian Fund Management to add Peltz himself and former Disney CFO Jay Rasulo to the board of directors.
Activist fund Blackwells Capital has also nominated several candidates for Disney's Board of Directors.
The support from Lucas comes after several grandchildren of Disney founders Walt Disney and Roy Disney also voiced their support for the media company and criticized the activist investor push.
In February, Trian outlined a plan for Disney to "restore the magic," which could help the company and shareholders.
"Disney is the most advantaged consumer entertainment company in the world and should have had a 'winning hand' in today's evolving consumer entertainment landscape. But instead, Disney lost its way over the past decade," Trian said.
The report highlighted the underperformance of Disney stock compared to the S&P 500 and media peers.
With the support of Lucas and the Disney family, along with Disney shares trading near 52-week highs, the separate battles from Trian and Blackwells could be facing an uphill battle to win over shareholders.
Disney shares could be volatile heading into April with all eyes on one of the largest and most public activist battles in years.
DIS Price Action: Disney shares trade at $114.63 on Tuesday versus a 52-week trading range of $78.73 to $115.19. Disney shares are up 21% over the last year.