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.

[Liz]

Eisner's mishandling Roy Disney's tenure, tarnishing the Disney name, will reignite shareholders who are already miffed at Eisner and sued Mikey for packing the board with his minions.

[Steely Tom]

It had failed to bring the ABC television network's primetime schedule "back from the abyss", he wrote.

Does anyone remember that summer some years back when the big idea at ABC for re-vamping their image was to emphasize a particular shade of yellow in all their ads?

That's the last idea I can associate with ABC.

(steely)

[Happy2BMe]

(Roy says company under Eisner "rapacious, soulless")

And I say the sooner DisneyPervLand closes the better.

Walt Disney surely is rolling over in his grave at the rampant sights and sounds of everything from homosexuality to wholesale violence, murder, rape, and mayhem and immorality dripping from anything produced by Disney in 2003.

Disney productions is an ideal example of the current state of the great American void of morality and decency.

What they produce is not fit for adults, let alone toddlers learning to walk, talk, read, and write. They have left everything even resembling the ideals of wholesome family entertainment Walt Disney is so well remembered for.

Let them go away - far, far away!

[Liz]

Nice, very nice, deconstruction. Could not agree more.

[Liz]

Gee, that idea was a biggie, too (/sarcasm).

[elli1]

"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."

This is just plain ugly, even uglier coming from the Disney company. The "family entertainment" company is kicking "grandpa" off the board because he's old?

It's like little mikey is driving the wheelchair & dumping Roy over the cliff. Seeing as how mikey has a bum ticker, maybe he ought to be riding in the wheelchair instead of driving it.

But I don't think age is the real reason why mikey wants Roy gone. It's going to be interesting to watch how this plays out w/ stockholders.

[Byron_the_Aussie]

Before Eisner:

After Eisner:

[G.Mason]

That just about says it all.

You have such a way with "words"

[Liz]

.....I don't think age is the real reason why mikey wants Roy gone.....

A power struggle, of course. It's what happens when you put soulless, rapacious people like Eisner in power. Eisner is self-serving and very ambitious.

If you've read the several post-Walt Disney books about the company, it was so utterly phony how Eisner acted when he got the job -- like he was going to be a good Disney-ite, faithful to Walt's legacy. What an egotistical liar.

This should be a wakeup call to those who do business with soulless, rapacious Eisner-types. They'll turn on you in a nanosecond, step all over you, and train their gunsites on you if you get in the way of their self-absorbed ambitions.

[Aquinasfan]

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.

My feelings exactly.

Pixar is where Disney should be, not "Brother Bear."

[MinuteGal]

Ping!

Leni

[Aquinasfan]

That just about says it all.

Ditto.

[Liz]

Heheh.....nice post. Pics tell it all.

[bobjam]

Eisner might as well be the unofficial dictator of Central Florida. Disney World today is basically a big marketing blitz- parents take their kids to the Magic Kingdom and the kids fall in love with Disney characters. The parents then end up buying videos, dolls and lots of other merchandise. As the kids get older, Disney World adds more attractions to keep their interest. Today they have stuff for all ages. The sad fact is that this is what these parks must do to survive. Marineland (America's first theme park) and Cypress Gardens (where water skiing and slalom skiing were invented) didn't go that route and have closed. Sea World almost sank as well (no pun intended). Some say that Eisner has ruined Walt Disney's dream. Others could easily say that our amoral society has made Disney's dream obsolete and that Eisner did what he had to in order to keep the company from following Marineland and Cypress Gardens into oblivion.

[HamiltonJay]

Eisner's been selling out the Disney brand for short term gain for along time now, anyone with two eyes that was willing to look at the company could tell you that. Its a shame that the stock holders and major shareholders have been so short sighted in this matter.

Eisner should have been gone a long long time ago, he has far outlasted his usefulness to the long term viability of the company.

Anyone could have made money by creating cheap capitalization of poorly produced cartoons and "sequels" of the existing catalog of Disney characters and products.... and make the quick buck now, but the inevitable outcome is a long term decline in the brands image and reputation.

Disney has without question gone from a respected world wide brand known for largely high quality family entertainment into just another entertainment giant out for the quick buck... and its truly a shame.

[Liz]

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

I would like to have been present when the pitch was made for this atrocious movie (which is rated Adult and getting good reviews).

I bet soulless Eisner loved the part about "Bad Santa's" oral sex. Then again, maybe the oral ses was soulless Mikey's idea.....soulless Eisner's contribution to perpetuating the Clinton legacy (gag).

[Happy2BMe]

"Some say that Eisner has ruined Walt Disney's dream. Others could easily say that our amoral society has made Disney's dream obsolete and that Eisner did what he had to in order to keep the company from following Marineland and Cypress Gardens into oblivion."

Are you part of the "some" crowd or part of the "other" crowd?

[Jhensy]

Anyone know what 'Bad Santa' did at the box office this weekend? Please tell me it bombed....

[Liz]

Its a shame that the stock holders and major shareholders have been so short-sighted in this matter.

Some have but others haven't been fooled. One shareholder group sued Eisner for stacking the board with his minions. If Roy is smart, he will organize miffed shareholders, and try to pull a coup.

[Spiff]

Some say that Eisner has ruined Walt Disney's dream. Others could easily say that our amoral society has made Disney's dream obsolete and that Eisner did what he had to in order to keep the company from following Marineland and Cypress Gardens into oblivion.

What would Walt do? Not this, that's for sure. He would have let the whole thing die before he would ever have given up on his dream.