Disney, Bob Iger, and Michael Eisner
posted by Elizabeth Nowicki
Bob Iger has been in the driver’s seat at Disney for over half of a year, and I am excited about what Iger’s Disney is starting to and will, ultimately, look like. Disney announced yesterday a new promotion – “Where Dreams Come True” – which the WSJ reports as being a “new global campaign to draw more guests to Disney’s theme parks.” The promotion, to start in October, involves a million giveaways to Disney visitors, including things like an overnight stay in Cinderella’s castle or the *entire* Magic Kingdom park to oneself for a day. I get giddy just thinking about it, in large part because I *love* the Magic Kingdom, and I like what I view to be the start of a return to the business concepts underlying Walt Disney’s ideas from decades past. I sincerely hope that Iger ends up delivering to the degree that we hard-core Disney fans expect.
Interestingly, even in what seem to be optimistic and happy times for Disney, Michael Eisner continues to show up and cast his pall. A recent LA Times article, titled Eisner Has Much to Say to His Successor, highlights what I view to be one of Michael Eisner’s biggest failings – hubris. The article contained excerpts from a shooting of CNBC’s “Conversations With Michael Eisner,” on which both Eisner and his successor, Robert Iger, appeared together. I did not see the actual CNBC tape, but, based on the article, it sounds like Eisner was still trying to convey to the world the he was right, the rest of the world is wrong, and Disney will not do as well without him. Specifically, after all of Eisner’s very public failings, he had the audacity to try to not-so-subtly point out during the show that he thought Iger’s recent Pixar acquisition was ill-advised. Classy, Michael. Classy.
That raises two thoughts in my mind:
1. I have always wondered why the Disney Board did not fire Eisner sooner. Seriously. After the Board became clear on how, exactly, they were railroaded by Eisner in the Michael Ovitz debacle, among others, did it not dawn on them that Eisner might be a bit of a loose cannon, at best? If I had nothing else to do on a rainy Friday, I might well do a “not in good faith” (ala BJR and DGCL § 102(b)(7)) analysis on the decision not to hand Michael his exit papers years ago. (In drafting this blurb, I poked around the ‘net on the notion of firing Eisner. It seems that Daniel Gross and I have been thinking the same thing for years, as is evinced by his aptly titled article “The Louse in the Mouse House.” )
2. Disney stock was one of the first stock’s I ever bought, in 1998. Here it is, close to a decade later, still trading at roughly the same price (actually, less than the price at which I bought it). Nice, Michael. Thanks. My opinion is that, for the past decade, the stock was fatally tied Eisner’s unwillingness to abandon or fix business plans that, while initially appealing, proved to be non-starters.
I have to believe that, a decade from now, the Disney stock price will not *still* be stalled out in the $28-31 range. Go, Bob Iger, go.
June 8, 2006 at 10:40 am
Posted in: Corporate Law, Employment Law
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Responses (1)
Paul S Merritt - February 27, 2007 at 2:04 pm
This may not be where I need to go but, I want a contact from Disney about using Mickey Mouse as my mascot for next year at my Banquet in Indianapolis In for I will be the Grand Master of The Independent Order of OddFellows of Indiana and need information on obtaining certain articles and such to help me with my program. We are a non-profit organization who help the needy and educate the children. My wish is to have something about “Mickey” and Disney.
I have been to both Disneyland and Disneyworld and want to spread the joy I received from my visitations to these wonderful parks and share some of the memories I have to offer to my people. If there is any way you can help me with this I would appreciate it.
My Banquet is in this October in Indianapolis and I know is short notice. If you can please get this to whomever it needs to go to I would appreciate it.
Thanks for any future help,
Paul S Merritt
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