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Trian Fund Management, led by billionaire investor Nelson Peltz, slammed Walt Disney’s investment strategy, calling it a “spaghetti plan against the wall.”
In a letter to the entertainment giant’s shareholders on Monday, Mr. Tryon criticized Disney’s investment approach and signaled a controversial position in the ongoing proxy battle between the two companies.
The criticism comes after Disney CEO Bob Iger announced a $1.5 billion stake in Fortnite developer Epic Games and plans to introduce its flagship sports streaming service ESPN. This is in response to what was revealed.
Mr. Tryon has pushed Disney to streamline its operations, with a particular emphasis on cost-cutting measures, advocating a strategy similar to Netflix’s profitable streaming business.
Investor-led funds remain skeptical of Disney’s recent moves, expressing concerns about the clarity and feasibility of investment decisions. In his letter, Tryon said Disney’s efforts look more like an attempt to distract shareholders than real progress.
Disney’s proposed sports streaming business could cause disruption to its customer base and create competition from existing services, Tryon said.
The fund also raised questions about the rationale for Disney’s investment in Epic Games, highlighting the lack of a clearly defined product roadmap. Tryon’s critique emphasizes the importance of strategic clarity and operational efficiency in Disney’s decision-making process.
In response to Mr. Tryon’s criticism, Disney called for a shareholder meeting scheduled for April 3, when investors would have a chance to vote on the future direction of the company.
The clash between Disney executives and activist investors like Tryon highlights the disagreement over the best path forward for the entertainment giant. With stakes high and tensions high, shareholders are poised to play a pivotal role in shaping Disney’s trajectory in the coming months.
(Information provided by Reuters)
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