Billionaire investor Nelson Peltz’s Trian Fund Management has sharply criticized Walt Disney’s investment strategies, denouncing them as a “spaghetti against the wall plan.”
In a missive directed to the shareholders of the entertainment behemoth on Monday, Trian scrutinized Disney’s approach to investments, indicating a confrontational stance in the ongoing proxy battle between the two entities.
The rebuke comes in the wake of Disney CEO Bob Iger’s announcement of a $1.5 billion investment in Epic Games, the developer behind “Fortnite,” and the revelation of plans to launch a flagship ESPN sports streaming service. Trian has persistently urged Disney to rationalize its operations, with a particular emphasis on cost-cutting measures and advocating for a profitability strategy for its streaming business akin to that of Netflix.
The investor-driven fund maintains a skeptical view of Disney’s recent actions, expressing reservations regarding the clarity and feasibility of its investment choices. In the letter, Trian asserted that Disney’s endeavors appeared more like attempts to divert shareholders’ attention rather than genuine strides forward.
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