Roy Disney Resigns? (1 Viewer)

[Casey Trowbridg]

This is big news, and the fall-out is only just beginning I suspect.

I don't know much about the inner-workings of Disney and have never been to the theme park, but if the mismanagement of the animation division is not just confined to the animation division which I suspect to be true than Roy Disney is probably right on, on all these matters.

 

[Todd Hochard]

When's the last time a movie like Lion King, Aladdin, or the Beauty & the Beast was made? When's the last time a ride like Space Mountain, Big Thunder RR, or Splash Mountain was made? All pre-mid 90's.

Mission Space is pretty cool. Test Track isn't bad, either, but two rides in five years don't exactly blow one's skirt up.

I think it's time for Eisner to go. Perhaps we can get someone in that won't rape the company for his wallet. He is a glaring example of the compensation-performance gap that has become commonplace in corporate America today.

 

[Adam Lenhardt]

Test Track isn't bad, either, but two rides in five years don't exactly blow one's skirt up.

I haven't been to Disney World since they put Mission Space in, but Test Track was a HUGE dissappointment. Typical of the new variety of rides so worried about potential lawsuits that they slow the ride down before it every really gets going.

 

[Brian-W]

But the late 1990's through early 2003 has not been very kind to its stockholders, with its loss of focus, eroding shareholder value,

Disney's stock is up 46% the last 12 months. If Roy would have waged his battle 12 months ago, would have had more impact.

 

[Glenn Overholt]

So, what is going to happen? I don't know the inner workings of a company, but can Eisner be voted out?

I remember Disney leaving before, but now he has company. I wonder if more board members will depart, and what happens to the votes when two (or more) 'voters' have left.

This could get very interesting, to say the least.

At any rate, I do hope that when the shakeup is done that we can get WS versions out for all of their FF only versions.

Glenn

 

[Damin J Toell]

So, what is going to happen? I don't know the inner workings of a company, but can Eisner be voted out?

Eisner has a contract until 2006 (although I don't know if this contract can be overriden by a board vote). Word had it that Eisner would be stepping down at some point next year, although he may now stick it out until the end of his contract to stick it to Roy E. Disney, et al.

DJ

 

[Ray H]

I hope that this movement can help set Disney back in the right direction. I don't know much about what goes on inside Disney in terms of decisions and stock, but it's obvious from viewers on the outside that all that Roy Disney states is true.

I remember once when every year Disney would put out a new event film that everyone would flock to, but now aside from Pixar, they don't really have anything. Pirates of the Caribbean was successful, but the rest of their movies all seem to be mild successes at best. It's become obvious that Disney is more worried about making the quick buck on straight to video sequels like Cinderella 2, Peter Pan 2, and The Jungle Book 2 (what the heck are they thinking?)than delighting people with the magic that once was associated with the name "Disney." I'm just a person that as a kid was enchanted by all that was Disney in the late eighties and early nineties. So it's just heartbreaking when I hear on the news that Disney has laid off so and so number of employees and even shuts down their animation studios.

 

[Allen Hirsch]

The Board can always buy out Eisner's contract - which is what they'd have to do even if thy WANTED to fire him (unless they're willing to be drug through court and make charges stick that they fired him for cause - meaning Eisner materially breached his contract, or committed some felony that justified his dismissal - and if they did that without cause, how would they then recruit a top-notch replacement?)

Gold is a crony of RD's, so I don't think these two represent enough of a groundswell from the board to actually force Eisner out. Eisner is apparently VERY politically savvy, so I'm doubtful today's announcements will do anything to force his hand - though it could still lead to something.

 

[Jason Seaver]

I'm not sure how this works - doesn't two of Eisners most vocal opponents resigning strengthen his position? I mean, I know Hollywood is Bizarro world in some ways, but all this does is give Eisner bad PR, which hasn't seemed to hurt him.

 

[JayV]

... doesn't two of Eisners most vocal opponents resigning strengthen his position?

If those people were about to be squeezed out anyway, a noisy resignation would a good way to, well, make some noise.

-j

 

[Lance Nichols]

Sorry to hear it. Roy seemed to really understand the roots behind Disney, and where the company really gets it power and trust from. Disney has been a creative black hole for nearly a decade now. Pixar and Miramax has been the creative tour-de-force(s) behind the scenes, IMHO. Not that Miramax has been all that good, especially with it's handling of foreign titles.

The celebrated Disney animated titles for late are all Pixar titles, while Disney rolls out stuff like the poorly executed Treasure Island animated film. Heck, even some of their "hits" are simply redoes of older Disney titles - Freak Friday comes to mind.

 

[John_Berger]

I remember Outland (sequel to Bloom County) talking about this very issue several years ago. (I have it in my lap now. I'd scan it and post it, but I'm not sure if the admins would approve.)

For those who never saw it...

As part of the explanation of the origins of Mortimer Mouse, Berkeley Breathed slammed Eisner nicely.

"Dec. 15, 1966: A nefarious plot! Pushed and cajoled by the murderous mystery man from accounting, Mickey reports a heart-stopping secret to an ailing weak-hearted Walt Disney... Tinkerbell is having Elmer Fudd's baby." Thud.

Years later as Mortimer returns to Disney Studios, he finds that Mickey and the Disney cartoon characters are chained up like prisoners drawing the next Roger Rabbit cartoon. Mickey tearfully laments "Walt's gone! The magic's over! The guy from Accounting is running the place! Morals are slipping, Mort. He's introduced new cartoon characters ... women characters ... with pronounced bosoms!!"

Mortimer goes off to confront Eisner. ("Big garbanzos, eh?") The Disney executive suite door is then opened with piles of money coming out. In a most un-Dinsey like brouhaha, Mortimer is banished to Outland with a chunk of his ear bitten off by Eisner.

A later stip has an Eisner-brainwashed Bill the Cat plugging Mortimer (bang, bang!) while Eisner considers making a Disney Brewery offering "Snow White Lite" beer.

Personally, it looks like Breathed hit the nail on the head those many years ago.

 

[Seth Paxton]

What a wonderful feeling it must be to watch the guy you hired run you out of your own company.

Clearly from what we've read and seen Eisner is even more the dangerous "boardroom climber" than we might have thought before. People like Roy don't stand a chance against a guy like him because he is playing for a different agenda - to gain power.

It seems obvious that Eisner truly never had any interest in Disney product, only in gaining money and power for himself. Certainly he could do that by improving the company, but this is not the only path nor is it always the best one. The key for someone like him is to not be "distracted" with sentimentality nor the love of the product/industry that his company is involved with.


I am now praying that Pixar decides to tell Disney to take a hike so that they can enjoy all of their profits themselves. I think Pixar could at least knock out a franchise sequel if they needed a sure-thing hit to build up some capital and then after that they would be up and going on their own.

After all, Disney was once a tiny little company too.

 

[Jeff Jacobson]

On a side note about the parks. I was in Disneyland last month. And it the one day. 2 rides broke down and I noticed that the boats on It's A Small World were worn and needed rehab. I don't know if they are not maintaining things like they used to. Yes, I know the rides are old and they are constantly in use. But, I remember years ago. If something started to get worn. It was pulled and refitted.

I heard that the recent death on Big Thunder Mountain was due to poor maintenence.

 

[steve jaros]

Here's an excerpt from an MSNBC article:

"The timing of this is in Eisner's favor. Results are on the upswing, ABC is stabilizing, and film has had the best six months in its history," says media analyst Michael Gallant of CIBC World Markets. "The time to do this was 18 months ago when the results were depressed and there were a lot more corporate governance issues."

Seems like Disney is still doing pretty well - it's film and video sales are tops, the theme parks still provide a tremendous amount of cash, and profits doubled from last year.

Who cares if the stock market doesn't like Disney or thinks they can't 'grow the company'? The company earns a $1 billion profit every year.

Unless Disney is trying to sell stock, what does that matter...?

 

[Chris Will]

deleted

 

[Edwin Pereyra]

The Board meets today with very little change in Eisner's Chairmanship expected to happen.

~Edwin

 

[Chris]

What Roy did will have little impact on Eisner, except it will create more public awareness that at least some of the honchos inside of Disney feel the same as much of the buying public

 

[Adam Lenhardt]

Seems like Disney is still doing pretty well - it's film and video sales are tops, the theme parks still provide a tremendous amount of cash, and profits doubled from last year.

This is a relative thing. The company's still way down from where it was; it's just better than when it hit bottom 18 months ago.

 

[Chris]

It's market percentage is not as high, and there are other problems with Disney; like it's theme parks aren't earning nearly as well as they once did. More then that, while ABC has rebounded, it is still the #3 network in a 4 network race, which isn't much to brag about; and it's demographics are in a worse condition then most, without a breakaway hit.