It’s action stations at entertainment giant Walt Disney (DIS:NYSE), where despite fourth-quarter results beating analysts’ expectations activist investors Nelson Peltz and ex-Marvel executive Ike Perlmutter are not happy bunnies.

In collaboration with Perlmutter, Peltz and his firm Trian Fund Management recently launched a ‘proxy fight’ for multiple seats on the House of Mouse’s board piling on the pressure for chief executive Bob Iger.

Peltz’s firm Trian Fund owns approximately $3 billion of Disney stock.

Another US activist firm, San Francisco-based ValueAct Capital, has also built a sizeable stake in Disney over the past few months although its precise value is unknown.

Minority investors might be forgiven for thinking Iger, whose contract runs to 2026, is already losing control of the company.

For his part, the chief executive has flatly rejected Trian’s demand for board representation but the activists are unlikely to go quietly.

Peltz is unhappy with Iger’s management of Disney, accusing him of devaluing the company: ‘Disney’s share price has underperformed proxy peers and the broader market over every relevant period during the last decade and over the tenure of each incumbent director.

Year-to-date Disney shares are up just 4% to $92.58, more than 15% behind the S&P 500 index.

‘Investor confidence is low, key strategic questions loom, and even Disney’s CEO is acknowledging that the company’s challenges are greater than previously believed’, adds Peltz.

The chief executive already has plenty on his plate as it is in terms of fixing the company without having to fend off unhappy shareholders.

Ben Barringer, technology analyst at Quilter Cheviot, said: ‘The company has managed to keep a lid on costs and is reducing spend on content, but revenues are lighter than expected as Disney continues to suffer from being a legacy media giant.

‘Traditional TV continues its decline, and while Disney+ subscriptions were better than expected it is now guiding for lower-than-expected subscriber growth as price increases bite. The parks and resorts side of the business continues to do well and is being helped by a strong American consumer – although how long this will last with interest rates much higher for longer remains to be seen.

‘Ultimately Bob Iger is still trying to sort out the mess Disney has created for itself, and you are starting to see why this is becoming a longer-term project for him. With the price for the remaining Hulu stake likely to rise, the writer and actor strikes causing content issues, attempts to sell off the Indian business and worries around Disney+’s scalability and profitability, the task ahead of him is a big one.’

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