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(Reuters) – Billionaire Nelson Peltz’s Trian Fund Management called Walt Disney Co.’s investment plan a “spaghetti plan against the wall” in a letter sent to the entertainment media giant’s shareholders on Monday. criticized.
Mickey Mouse’s home is in a proxy battle with Mr. Peltz, who wants the company to cut costs, generate Netflix-like profits from its streaming business and sort out its succession plan.
CEO Bob Iger had announced plans to take a $1.5 billion stake in Fortnite maker Epic Games and launch a flagship sports streaming service, ESPN.
Funds led by activist investors were unimpressed, saying in a letter that the company “seems to be trying to distract shareholders with what we consider to be fantasy, claiming it has turned a corner and entered a new era.” ” he said.
Plans for a sports streaming venture will cause confusion for Disney customers and compete with its own services, Tryon said, adding that the Epic Games investment lacks a clear product roadmap.
Trian filed a regulatory filing on Jan. 31 stating that shareholders should replace Disney directors Michael Froman and Maria Elena Lagomasino with Peltz and former Disney chief financial officer Jay Laszlo. I was going.
“Disney shareholders need the company to consistently perform under close board oversight. That’s the secret to good eating,” Tryon said.
Disney has set a shareholder meeting for April 3, where investors will decide who will lead the company’s future.
(Reporting by Harshita Mary Varghese in Bangalore; Editing by Krishna Chandra Eluri)
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