Posted on 11/13/2002 11:16:00 AM PST by GeneD
NEW YORK - This morning as guests gathered at a media breakfast to hear Michael Eisner, chairman and CEO of the Walt Disney Co., the weather outside was cold and nasty. But, if you were an employee of Disney subsidiary ABC, the biggest chill was inside when the raspy-voiced Eisner stated that he did not see the third-ranked network being around in "four to five years."
Eisner has been under increasing pressure from shareholders to bolster the company's stock price, which is trading in the $17 range, lower than where it was five years ago and more than 60% off its April 2000 high of $43.65. Like all media companies, Disney has been hit by the advertising slowdown over the last couple of years. While Eisner is optimistic that business will improve for most Disney properties, he is less sanguine about ABC.
"Some of our entertainment hasn't been entertaining enough. This is particularly true at our ABC network," he said at a Goldman Sachs conference last month.
Disney bought ABC in 1995 for $19.6 billion and rode high for a while thanks to the success of such programs as Who Wants to Be a Millionaire. Since then, it has seen ABC's ratings slump, and its new roster of programming has failed to attract new viewers. Even worse, many ad buyers don't think the network's hit bottom yet
During the course of questioning by mediator Ken Auletta of The New Yorker magazine, Eisner praised several Disney properties, particularly the flagship Disney brand and sports cable channel ESPN. He called them "differentiated products" and said that when he looked into the future he could see them "20 to 25 years down the road."
When pressed about ABC's future by Auletta, Eisner responded that he didn't see it as having a unique brand identity. ABC was "not relevant and unique," like former media giants Paramount and Warner Bros.
Eisner did talk up ABC's news division, which is ranked first among network news broadcasts. But when asked about the possibility of combining ABC's news division with AOL Time Warner's CNN subsidiary, he said he gave it only a "50-50" chance.
At Disney's board meeting in late September, Eisner made promises that he would return the company to "double-digit growth" in 2003. He has already explored selling the company's World Series champion Anaheim Angels as well as its professional hockey team, the Mighty Ducks. Disney is also reported to be considering a sale of its radio stations.
ABC's future is central to the question of succession at Disney. Eisner has been running the Burbank, Calif.-based entertainment and travel giant for 18 years, and his presumed heir is Robert Iger, Disney's president and COO. Eisner has tasked Iger with turning ABC around.
If he fails to do so, or if Disney's board and shareholders don't see the promised increase in the stock price, it is possible that Eisner may consider putting ABC on the block.
I heartily endorse his gay-friendly movies and gay-days at Disneyland.
I can't wait to see the dead, shriveled-up mouse go kaput.
Into the dustbin of history....!
FReegards...MUD
ABC is still around? I removed it from my satellite tuner and haven't missed it.
I won't hesitate to take my kids to DisneyWorld as soon as they are old enuff to appreciate it, but I actively refuse to allow ABC TeeVee to despoil the inside of the MudCave!! I agree with your post 100%...Eisner brought this on with the ideological disinformation he and his EffeteElite pals spew!!
Although I like FoxNews, Rupert Murdoch is NO TRUE CONSERVATIVE and never will be...the Right needs to control a Network, the sooner the better!!
FReegards...MUD
EXACTLY! If Disney really wanted its stock to skyrocket, revamp itself back to the origional vision that Walt had for it. Get rid of Eisner, Homo day and sell its R rated movie divisions and return back to their roots.
Four to five years might be overly optimistic!
Won't it be fun if Dominion Broadcasting (http://www.skyangel.com) bought ABC? Christian radio is already knocking off NPR on the airwaves. Now is the time to clean up TV.
At any rate, Disney/ABC will have to sell at a loss! They ain't worth that much...
The clarification takes all the negative stuff back. I guess Eisner got an earful from someone.
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