Conflict at Walt Disney bursts wide open (Roy says company under Eisner "rapacious, soulless")

FINANCIAL TIMES ^ | December 1 2003 | Christopher Parkes, LA, Peter Thal Larsen, NY

[Liz]

Roy Disney resigned as vice-chairman of the Walt Disney entertainment group on Sunday and called for Michael Eisner, chairman and chief executive, to follow suit, bringing to a head a conflict that has been brewing for a decade.

"It is my sincere belief that it is you who should be leaving and not me," he said in a bitter letter that criticised Mr Eisner's performance and style on seven counts.

The departure and open hostility of Mr Disney, nephew of Walt Disney and still a substantial shareholder, are likely to reignite the debate about the media company's direction.

It marks the end of a relationship that dates back to 1984, when Mr Eisner was appointed to rescue the company from break-up raiders.

The letter detailed criticisms that Mr Disney had offered privately and had been repeated in writing from Stanley Gold, a board member, and head of Mr Disney's private investment group, Shamrock Holdings.

It said the company, under Mr Eisner's leadership, had "failed during the last seven years in many ways". It had failed to bring the ABC television network's primetime schedule "back from the abyss", he wrote.

Attacking the "timidity" of group investments in its key theme parks in California, Paris and the resort under construction in Hong Kong, he said "you have tried to build parks on the cheap and they show it and the attendance figures reflect it".

The company was seen by virtually everyone associated with it as "rapacious, soulless, and always looking for a quick buck rather than long-term value," Mr Disney said.

Also included in his catalogue of complaints were the "creative brain drain", which was especially trying for Mr Disney who, as chairman of the feature animation division, had seen his empire whittled down by heavy lay-offs.

Mr Eisner had also failed to build constructive relationships with its successful Miramax film subsidiary, and Pixar, the computer animation company responsible for most of the Disney-branded hit cartoons.

Mr Disney also referred to the chairman's consistent refusal to establish a clear succession plan, and accused him of eroding morale across the company.

In the past two years, an enlarged board and other measures have quieted most external criticism.

A statement from the Disney board said Mr Disney had not been nominated for re-election to the board because of mandatory age limits. He is 73.

"It is unfortunate that the application of these unanimously adopted governance rules has become an occasion to raise again his criticisms of the direction of the company, and calls for change of management, that have been previously rejected by the board," it said.

[4CJ]

Kudos to Mr. Disney. I guess there are a few decent people in the entertainment industry.

[G.Mason]

""Bad Santa" is an outrage. Eisner tarnishes a child's icon they have revered forever, a symbol of their hopes and dreams ......."

Eisner & Co. have been re-making Disney in their own image for many years.

My family and many friends have gone elsewhere for entertainment.

The word Disney has become synonymous with degradation.

[PGalt]

bump

[Liz]

Day after release figures are a good indication.


The Top Movies of Thursday, November 27, 2003
Movie Gross % Change Theaters Per Theater Total Gross Days

1 (3) Elf $5,700,000 +42.50% 3,202 $1,780 $108,000,000 21

2 (2) Haunted Mansion, The $5,100,000 +15.91% 3,122 $1,634 $9,500,000 2

3 (1) Cat in the Hat, The $4,800,000 -4.00% 3,464 $1,386 $52,700,000 7

4 (4) Gothika $3,300,000 +37.50% 2,382 $1,385 $28,600,000 7

5 (8) Bad Santa $3,100,000 +72.22% 2,005 $1,546 $4,900,000 2

6 (7) Missing, The $2,700,000 +42.11% 2,756 $980 $4,600,000 2

7 (5) Master and Commander: The Far Side of the World $2,700,000 +28.57% 2,703 $999 $54,800,000 14

8 (6) Timeline $2,200,000 +10.00% 2,687 $819 $4,200,000 2

9 (9) Love Actually $1,800,000 +28.57% 1,690 $1,065 $35,300,000 21

10 (10) Matrix Revolutions, The $1,100,000 +10.00% 3,024 $364 $128,800,000 23

[Liz]

The word Disney has become synonymous with degradation.

And now, thanks to Roy, it's become synonymous with Eisner's soullessness.

[Liz]

It's too bad Roy can't appropriate the Disney name and have it removed from Eisner's atrocities.

[Lil'freeper]

Excellent find. Although this should read:

"rapacious, lascivious, soulless, and always looking for a quick buck"

[Drawsing]

I read a biography of Walt Disney. If I remember correctly, he did not like his nephew Roy's character. And when you look at Roy's attack on Eisner, Roy says nothing about the moral content of Disney's current products. His diatribe is strictly limited to business concerns.

[Liz]

....... "rapacious, lascivious, soulless, and always looking for a quick buck".....

Great addition........ol' Mikey fits the description to a tee.

[EverFree]

Hey Veronica, remember when you taught us that Disney and Eisner are just the best of friends, back when Eisner used claims of anti-semitism as an excuse to purge Easterbrook from ESPN for saying the same things that Roy Disney is now?

Remember how we cheered the twisting of Easterbrook's words around to mean the opposite of what he actually said?
That was so classic.

[Liz]

......when you look at Roy's attack on Eisner, Roy says nothing about the moral content of Disney's current products. His diatribe is strictly limited to business concerns.......

Roy's reference to Eisner's "soullessness" speaks volumes, don't you think? Seems to me that was a reference to the moral vacuum in which Eisner operates. Besides, Roy is just getting warmed up. He's not going to go quietly. Let's see what he does next.

[capt. norm]

Something makes me think that they would have found a way to kick the original Disney (Walt) off the board long before now if he were still alive.

That company no longer projects the true "Disney Spirit" that was always present when Walt was alive. The company had 'heart' back then and its family values were beyond reproach.

A lot of us grew up with Disney films and productions and it was always a special treat when Walt Disney would come on their TV show and talk about something special they were doing.

Look what Eisner has done.
(I'm not going to make a list because we all know what's on it))

[capt. norm]

I'm sure you are also aware that the Disney complex is, for all practical purposes, outside the local law enforcement's reach.

Before construction of the original park, the local governments gave up everything but the kitchen sink to get it to locate there. The state government did much the same thing. As a result, the Disney Parks are like a small sovereign country.

If something happens to you at Disney World, don't count on the local Sheriff's Dept. or any local police to help you. You deal with Disney Security or you deal with no one.

[King Prout]

Does anyone remember... a particular shade of yellow in all their ads?

you jest?

[King Prout]

??!!??!!??
this is the first I have heard of this abomination.
hopefully, assuming the damn thing tanks, it will also be the last.

[E. Pluribus Unum]

The minute Eisner is out Disney stock will go up like a rocket.

[Savage Beast]

Say, Hap, would you mind posting that tagline about the terrorist vote, centered, in bold, and enlarged 5-fold, about 100 times? Thanks.

P.S. Anybody know how to get it made into a bumper sticker?

[mel]

Is yellow some type of code for homosexuals, honestly I don't know, I figure it must have something to do with them though.

[bobjam]

I really don't know. It's sort of like a bowling alley in that the bowling alley doesn't make money on bowling- it makes money on concessions. That's what Eisner has done with Disney. Maybe I'm being pessimistic, but the sad reality is that the only place for Walt Disney's dream today seems to be Fantasy Land.

[Grampa Dave]

As the pink ribbon wearing and pushing Eisner forces Roy out of Disney, Roy decides to fight back.

Lets hope that the board forces Roy out and ignores him.


That will enable the vile super liberal, Eisner, to really disable Disney. Eventually that will get him fired.

If ABC/Jennings, Eisner can't enable $inator Hildebea$t or some other diseased RAT to be elected president, the big money people will pull the plug on ABC/JENNINGS/EISNER.

Eisner will be on the street shortly after GW is sworn in for his second term in 2005.