Roy Disney Resigns? (1 Viewer)

[Neil M]

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.

Disney cares. If they want to issue a seasonal offering, they want people to have faith in their company. Also, they want to keep current stockholders happy because they essentially own the company. And I guarantee Roy Disney cares since he owns a crapload of shares. The problem with Disney is that they got themselves into a lot of different businesses that frankly they aren't very good in. Just look at the sports teams they owned. The one thing that Disney is supposed to do the best (family entertainment) seems to be suffering due to all of this diversification. They aren't focusing their efforts to their feature films and theme parks.

Eisner will leave when he wants to. From what I've read, people have been upset with him for many years so I don't expect him to leave anytime soon. I can only imagine what Walt would think if he were still alive. I'm glad Roy finally had the balls to say something.

 

[Christian Behrens]

Sybase Chairman, CEO, And President Chen Elected To Disney Board Of Directors

Tuesday, December 2, 2003 05:18 PM ET

BURBANK, Calif. -(Dow Jones)- Walt Disney Co. (DIS, news) named John S. Chen to its board, following Sunday's abrupt resignation of Vice Chairman Roy E. Disney, nephew of the company's namesake, and Stanley P. Gold, fellow director and longtime business associate.

In a written statement, Disney Chairman and Chief Executive Michael Eisner said, "Some of Disney's most significant long-term growth opportunities reside in the smart use of technology, and John will help the board ensure we're steering the company in the right direction."

Chen, 48 years old, is chairman and chief executive of Sybase Inc. (SY, news), a Dublin, Calif., company that makes database and wireless software for businesses. Chen's appointment as an independent director will be effective in January, the media company said in a press release Tuesday.

Disney representatives weren't immediately available to say whether the company plans to fill the other vacated seat.

On Monday, The Wall Street Journal reported that, in their resignation, Disney and Gold called on Eisner to quit. Eisner, 61 years old, has led Disney since 1984, when a group including Roy Disney recruited him to rescue the company from corporate raiders. But the company's performance has fallen from the profitable highs that marked Eisner's first decade at the company, the Journal noted.

Disney's shares closed Tuesday at $22.58 on the New York Stock Exchange, down 59 cents, or 2.5%. Composite volume was 14.2 million shares, nearly double the stock's average daily trading volume of 7.5 million shares.

- Nora Devine; Dow Jones Newswires; 201-938-5400

http://www.quicken.com/investments/n...1718001421.var

 

[Colin Jacobson]

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.

Yeah, but how often does ANY park produce genuinely terrific rides? Nobody pumps out new classics every year. The three originally mentioned - Splash Mountain, Big Thunder, and Space Mountain - all come from different decades. That's not exactly a relentless string of classics...

 

[Chris]

I hate to break it to Disney, but their software enterprise has largely been a bust; and if they count on making that into something, they would be better suited to partner up with a pre-existing company, as they did once upon a time rather then this kind of foolishness.

 

[MatthewLouwrens]

In a written statement, Disney Chairman and Chief Executive Michael Eisner said, "Some of Disney's most significant long-term growth opportunities reside in the smart use of technology, and John will help the board ensure we're steering the company in the right direction."

How about making decent movies and entertainment that people want to watch? Isn't that Disney's reason for existing?

 

[Edwin-S]

What the hell does a guy with a background in database and wireless applications know about running an entertainment media company. How does Eisner think that a guy who runs a database company can steer Disney's growth in technology? What are they planning........MICK-SEL? The database used by the happiest beancounters on Earth!

Eisner has been a cancer eating away at Disney for too long. He should go and stay gone. The only amazing thing is that it took Roy Disney this long to see what a destructive force Eisner really is.

 

[Edwin Pereyra]

How about making decent movies and entertainment that people want to watch? Isn't that Disney's reason for existing?

Studio and home video entertainment, while a good portion in itself still only account for 26% of Disney's total revenues. Here is a breakdown of Disney's total revenues from their most recent available financial statements:

Broadcast and Cable Media Networks: 41%
Studio and Home Video Entertainment: 26%
Theme Parks and Resorts: 24%
Consumer Products: 9%

~Edwin

 

[Edwin-S]

Yes, but I think a lot of their other products are spin offs from the movies and other shows that they produce. Not to mention the merchandising of their animated characters. So I would think that a large part of their revenue is indirectly related to their entertainment properties.

 

[Edwin Pereyra]

But what really counts is which division is the most profitable (i.e. after all expenses are paid). Here is a breakdown of operating income:

Broadcast and Cable Media Networks: 37%
Theme Parks and Resorts: 32%
Studio and Home Video Entertainment: 18%
Consumer Products: 13%

Disney's media and theme park divisions combined account for nearly 70% of operating income.

~Edwin

 

[Christian Behrens]

I have the suspicion that they will be trying to use technology to sell us the same things over and over again, like everybody wants to anyway.

"Watch ABC's news on your phone!"
"Listen to the soundtrack of the new Disney classic '' on your wireless WMA player!"

You know, that sort of thing. Of course, it will be all "pay as you go" (thus me saying WMA instead of MP3). Content quality might take a backseat to this, however.

But this is really just speculation on my part.

-Christian

 

[Allen Hirsch]

Disney's become such a big conglomerate, they've pretty clearly lost their focus on what they actually stand for (if anything, other than trying to squeeze the last dollar out of every consumer who grew up loving Disney for what it once stood for: terrific family entertainment and unparalleled animation - until Pixar came along).

 

[BobH]

Disney and Gold had no choice. They were forced out by a BoD that is nominated and elected by Eisner. Now Eisner has no critics on a BoD that is supposed to be his watchdog. This is exactly what has caused most of the economic problems in our country in the last 30 years. Many BoDs have been reformed and things are getting a little better but there are plenty left like Disney that believe they can continue to survive if they circle the wagons. They are probably right. Shareholder revolts are rare but it COULD happen to a very public company like Disney. I suspect this is what Roy and Gold are contemplating. But I wouldn't bet against Eisner . . .

I think we are seeing the end of the Disney I once admired. I would be really amazed to see it turn around and become a class act again. Oh, well, there was a time when the actions of the United States were respected too.
Times change.

 

[streeter]

Don't forget, they also have that Winnie the Pooh suit. Pooh accounts for a large percentage of Disney merchandising.

I'll also contribute my thoughts on Disney's California Adventure: Not 'Disney' enough. It lacks the Disneyland magic. There are some fun rides, but they should have been named after Disney characters or films.
Even the name of the park doesn't strike me as interesting.
Shortly after it opened, they changed the admission so that you could get in for free with admission to the original Disneyland - instead of having to pay for them seperately. September 11 might have had something to do with low attendance, but I still call it disastrous. And I can't believe that nobody saw it coming.

 

[Adam Lenhardt]

Oh, well, there was a time when the actions of the United States were respected too.
Times change.

Hey, let's ditch the political commentary, if you please...

 

[BobH]

Hey, let's ditch the political commentary, if you please

Actually it is social commentary. Those of us that grew up with the Walt Disney image, films, and legendary quality orientation find this board-room story poignant and sadly in line with a lot of Americana that has been tarnished. There has always been greed but some institutions have done very well just trying to do something special. I will always have a special fondness for Walt and his dreams. It was touching to see Roy E Disney's introduction to Fantasia 2000 but now it will include a little touch of compassion for an idealist.

 

[MatthewA]

In case anyone cares, here's an interesting link:

http://www.pruiksma.com/letterofsupport.html

 

[Brandon Conway]

Signed.

 

[Robert Crawford]

The above is not a social commentary, but is a political comment that needs to be kept out of this discussion and the forum as a whole.

Also, please refrain from posting copyrighted material such as articles in their entirety. Providing a link to the article is the best course of action. Thank you.




Crawdaddy

 

[BobH]

I have read your comments for years now and you are a quite reasonable writer. However:

The difference between social and political commentary is not an appropriate subject here so I won't argue.

I have never posted any copy of any article (copywrited or not) on any bulletin board ever. You have me confused with someone else perhaps.

 

[John_Berger]

You have me confused with someone else perhaps.

I posted an article from Reuters regarding an update to this situation with Roy Disney, which was promptly yanked apparently.