Trian Partners criticises undervaluation of Disney's Indian assets, calls for board nominees: ET

Disney's Star India assets were allegedly undervalued in the merger with Reliance, resulting in a $2 billion impairment.

According to a report on ET, Walt Disney has been under fire from Trian Partners, an activist investor group headed by Nelson Peltz, for allegedly destroying value in 21st Century Fox's foreign operations, especially in India. The American hedge fund management company claimed that Disney's Star India assets were undervalued in the merger agreement with Reliance Industries, resulting in a $2 billion impairment.

Disney and Viacom18 are going to merge; the deal is estimated to be between $3 to 3.5 billion. This transaction was originally estimated to be worth $15 billion as part of Disney's $71 billion purchase of 21st Century Fox. Disney will own 37% of the combined company, with RIL and Viacom 18 holding the remaining 63%.

Additionally, according to Trian Partners, Disney+ Hotstar, the streaming service owned by Star India, witnessed a 39% drop in subscribers in 2022–2023 after losing the digital rights to IPL. The corporation, which holds $3.5 billion worth of common Disney shares, is not happy with the management of the company because of its poor performance.

Trian Partners has asked Disney shareholders to support Trian Partners nominees Nelson Peltz and Jay Rasulo to the board while rejecting Disney nominees Michael BG Froman and Maria Elena Lagomasino, as part of its pledge to restore Disney to its previous glory.