Disney's (DIS) proxy battle with activist investor Nelson Peltz continues, with Walt Disney's grandchildren directly appealing to shareholders. The family members wrote letters to warning them of the Peltz's intentions, referring to activist investors as "wolves in sheep's clothing."

Yahoo Finance Entertainment Reporter Alexandra Canal breaks down the details.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

[AUDIO LOGO]

JULIE HYMAN: As Disney CEO Bob Iger continues his fight with activist investor Nelson Peltz, he's getting some reinforcements from the Walt Disney family. Yahoo Finance's Alexandra Canal has been following the board-seat battle. She joins us now with an update. This may be a little surprising.

ALEXANDRA CANAL: Yeah, maybe a little surprising. And it seems like Disney has had a very busy week, right? I mean, we've heard a lot of announcements from this company, whether it be its retreat from India, whether it be the studio executive shakeup. But now I think looking ahead, a big question mark for investors is this proxy battle? Will Nelson Peltz succeed in shaking up Disney's board? Is he going to get that seat that he really, really wants?

But now we have the backing of the Walt Disney family and this is in an open letter. There were two open letters that were sent to shareholders from the grandchildren of Walt Disney and his brother Roy. There was one in particular that had some really fiery choice words there. The grandchildren of Roy saying in part, quote, "That he would be very concerned by the threat posed by self-anointed activist investors who are really wolves in sheep's clothing just waiting to tear Disney apart if they can trick shareholders into opening the door for them."

So not holding back there. They very much support Disney's current board. They very much support CEO Bob Iger. They admitted that they haven't agreed with everything that's gone on at the company, but ultimately, they don't want Nelson Peltz and Trian Fund Management-- Trian Fund Management to infiltrate that there. There's also the investment firm Blackwells Capital. They are pushing for their own board seats but really more so an extension of the board rather than a full replacement that Nelson Peltz wants to do.

So there's just a lot of turmoil for this company. Wall Street viewers have viewed this as really a distraction for Bob Iger. There's a lot of other issues at this company. But this is all going to come to a head on April 3. That's when the shareholder meeting is, and that's when we're really going to find all of this out and the answers to these questions.