Nelson Peltz slams Disney’s investment plans as throwing ‘spaghetti against the wall’

Billionaire Nelson Peltz’s Trian Fund Management criticized Walt Disney’s investment plans, calling it a “spaghetti against the wall plan,” in a letter sent to the entertainment and media giant’s shareholders on Monday.

The home of Mickey Mouse is in a proxy battle with Peltz who has pushed the company to cut costs, create Netflix-like profit for its streaming business and clean up its succession planning.

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CEO Bob Iger had announced a $1.5 billion stake in “Fortnite” maker Epic Games and plans to launch a flagship ESPN sports streaming service.

The activist investor-led fund remained unimpressed and said in the letter the company “appears to again be trying to distract shareholders with what we see as a fanciful tale, claiming it has turned the corner and entered a new era.”

The plans for a sports streaming venture would create confusion among Disney’s customers and compete with its own services, Trian said, adding that the investment in Epic games lacked a clear product roadmap.

Trian had made a regulatory filing on Jan. 31 in which it said shareholders should replace Disney directors Michael Froman and Maria Elena Lagomasino with Peltz and former Disney chief financial officer Jay Rasulo.

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“Disney shareholders need the company to consistently perform under the watchful eye of a vigilant Board. That is the recipe for good eating,” Trian said.

Disney has set a shareholder meeting for April 3 for when investors will get to decide on who will guide the company’s future.