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.

[Fair Paul]

This article makes me even more proud of the fact that I'm the one of the few middle class parents in America who hasn't taken their kids to Disneyland or Disneyworld.

[ALOHA RONNIE]

How very interesting.

I'm predicting that with DISNEY Presiding Chairman Sen. GEORGE MITHCELL's (D) forcing ROY DISNEY out on behalf of HILLARY's Friend MICHAEL EISNER...

EISNER was now free to finally bring BILL CLINTON's ABC-TV Morning Talk Show on the air like he's wanted to for over a year.

I'll never forget meeting a most gracious WALT DISNEY himself in Frontierland in 1956 where he was planning his innocent 'TOM SAWYER's Island."

Who would'a thunk..?

[Dante3]

What a shame what Eisner had done with Disney.

[Grampa Dave]

Ronnie, this is an interesting prediction, "EISNER was now free to finally bring BILL CLINTON's ABC-TV Morning Talk Show on the air like he's wanted to for over a year."

Just in time for $inator Hildebea$t to be drafted for 2004?

[Toskrin]

It loks like Roy has given up. He's trying to sell almost half his shares.

http://biz.yahoo.com/t/72/297.html

[reagandemocrat]

You two are beginning to scare me. EISNER/CLINTON conection. Look out.

[philosofy123]

Eisner is a self serving bum. He took a family oriented business and converted it to an unethical business, only concerned about political correctness, and a financially unprofitable company because all the profits were being stolen by Eisner and his cronies.

[Grampa Dave]

All of us need to be concerned about the super rich mediots like Eisner and their long time connections with the Clintoons.

[smith288]

Before

After

[arasina]

I don't think he's exactly well liked at the news division of ABC. I used to work for a networked owned-and-operated ABC affiliate and we'd get really stupid emails from Michael every so often, addressing ALL Disney employees condescendingly as "Castmembers," sometimes mentioning the expensive and exotic vacation site from which he was sending his missives. You're the cartoon, Eisner.

[Lady Jag]

Bump for later read.

[Grampa Dave]

http://www.freerepublic.com/focus/f-news/1031630/posts

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Posted on 12/01/2003 9:11 AM PST by diotima



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http://www.freerepublic.com/focus/f-news/1031630/posts

[Marysecretary]

I think the gay color is lavender, a cross between blue and pink. Mxxx

[longfellow]

Hey how's your Holidays! Hope Good!

AWWWWWRIGHT PEOPLE, Listen up. I was there I saw what happened. What do you expect from eisner, he supported cunton. I watched this company bring in a lot of queers from fashion ave. and they took over our company and fired us. I wanted to do Patriotic retro forties WWII patches and I was told MICKEY MOUSE IS NOT AN AMERICAN HE IS A CITIZEN OF THE WORLD!!!! After 9/11 when the company saw they could make a buck Mickey was on shirts in front of flags and even the whores at the dizney store put Buzz Lightyear in the stars and stripes. Hell I was laughed at and ridiculed cause i had ol' glory hanging up on my office wall. So here's the deal you go to my website and send us a note like F U Hitlary and i will send you a "support our troops" shirt. they are beautiful , ask NY COP, or FIREBRAND or Robert DeLong and they will tell you these are better than any mickey rat shirt and they are free. So send a message to that traitorous witch that America does support our boys and we will win this fight over there. Ironic that the senator from (ahem) NY forgot that the TWIN TOWERS were there.

[Liz]

I don't think (Eisner's) exactly well liked at the news division of ABC. I used to work for a networked owned-and-operated ABC affiliate and we'd get really stupid emails from Michael every so often, addressing ALL Disney employees condescendingly as "Castmembers," sometimes mentioning the expensive and exotic vacation site from which he was sending his missives. You're the cartoon, Eisner.

Eisner has been memorialized in perpetuity in the Chia Pet Hall of Fame.

[Liz]

That scenario sounds good.

[Liz]

Good for you.

[Sabertooth]

It loks like Roy has given up. He's trying to sell almost half his shares.

He's trying to create a shareholder crisis by drivng down the value of the stock. Watch for Eisner and cronies to buy, buy, buy.

This is gonna be bloody, and fun to watch.

[lonevoice]

Bump for #7. 'Nuff said.

[razorback-bert]

As a little kid, I wanted to go Disneyland so bad and was quite jealous, when my cousins moved to California and got to go.


Now pee on 'em.