Disney and Trian Fund Management engaged in a heated clash on Thursday as activist investor Nelson Peltz's challenge against the entertainment giant picked back up. Trian, having recently increased its Disney holdings to approximately $3 billion, expressed its intention to directly present its case for change to Disney shareholders. This comes after Disney denied Trian's pursuit of board seats earlier in the day.

In a strongly worded statement, Trian highlighted the significant loss of shareholder value, amounting to approximately $70 billion, since it last engaged with Disney in February. The investment management firm criticized Disney's underperformance in relation to its proxy peers and the broader market over the past decade. Furthermore, Trian emphasized that investor confidence is dwindling, and key strategic concerns remain unaddressed, even acknowledged by Disney's CEO, Bob Iger.

Regarding Disney's appointment of James Gorman and Jeremy Darroch to its board, Trian dismissed it as insufficient to restore investor confidence or rectify the board's oversight of significant value destruction and missteps. While acknowledging that the appointments could be viewed as an improvement from the current state, Trian remained skeptical of their ability to address the underlying issues.

Disney, however, stood by its new board members, considering their selection as a demonstration of the company's commitment to corporate growth and improvement. The entertainment giant noted the ongoing major changes implemented under Bob Iger's leadership, including workforce reductions and restructuring into three business segments, as evidence of its determined efforts to navigate the industry's evolving landscape.

In its response to Trian, Disney also raised concerns about the ownership dynamics between Nelson Peltz and former Marvel Entertainment Chair Ike Perlmutter, referring to their personal agendas against Disney's CEO. The company highlighted Perlmutter's termination earlier this year and stated that his interests may not align with those of other shareholders.

Disney reiterated its focus on executing improvements in its film studio, driving growth in its Experiences segment, generating profitability from its streaming services, and transforming ESPN into a digital platform. The company's direct-to-consumer streaming services, including Disney+, Hotstar, Hulu, and ESPN+, generated $5.55 billion in revenue during the fourth quarter, with the operating loss significantly decreasing to $387 million. CEO Bob Iger expressed confidence that the company would achieve profitability by the fourth quarter of fiscal 2024.

Disney's shares have experienced a 4% increase since the beginning of this year, while witnessing a 5% decline over the past 12 months.

The battle between Disney and Trian continues, with both sides positioning themselves for a pivotal showdown as the activist investor seeks to assert influence and implement change within the entertainment giant. Shareholders eagerly await further developments in this high-stakes clash.