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Tag: Eisner

  • Iger to succeed Eisner as Disney CEO

    MUMBAI: Disney’s board of directors have announced that Robert A Iger has been unanimously elected as its CEO. He takes up this role from 30 September 2005.

    Current CEO Michael Eisner had announced his intention to retire in a letter to the Board last year. Disney’s board of directors chairman Sen George J Mitchell said, “The decison was taken after a lengthy, thorough and professional selection process, comparing both internal and external candidates against our criteria for CEO. Bob is an experienced, talented and visionary leader who has made crucial and substantial contributions toward Disney’s strong performance. On behalf of the entire Board, I want to express how excited we are at the prospect of Bob leading this extraordinary company and talented management team to new levels of financial and creative success in the years ahead.”

    Iger currently serves as Disney president and COO. He said, “It is truly an honor to be entrusted with the responsibility of guiding this great company that occupies such an important place in the hearts and minds of millions the world over toward a very bright future. It is also an honour to work with our incredibly talented and dedicated worldwide team. I feel all the more privileged to succeed Michael, whose tremendous 20-year leadership and enormous accomplishments have built this company into the world’s preeminent leader in family entertainment.”

    Eisner said, “It is with a considerable amount of satisfaction and even pride that I approach the end of my term as CEO of this company. By every financial and creative measure, Disney is performing at its peak. I have enjoyed virtually every moment of my tenure and want to express my appreciation to the phenomenal colleagues with whom I have been privileged to work. I believe Disney is now poised for its brightest days in the years ahead under the able and insightful leadership of Bob, who has not only the qualities to succeed, but also has a keen sense of the Disney brand and how to maintain its leadership position and grow it on a worldwide scale.”

    The selection of Iger culminates a lengthy and detailed CEO selection process that started formally when the Disney Board announced on 21 September 2004 that it would, “engage in a thorough, careful, and reasoned process to select as the next CEO the best person for the company, its shareholders, employees, customers, and for the many millions of others who care so much about The Walt Disney Company. The Board is keenly aware of the special place our company holds in the hearts of people all over the world and the importance of its responsibility in choosing a CEO.” The Board also made known that day its intention to complete the process and announce a successor as soon as possible, with an expected date of completion of June 2005.

     

  • Disney’s Eisner, Iger in India; to meet PM & President

    Disney’s Eisner, Iger in India; to meet PM & President

    NEW DELHI / MUMBAI: The Walt Disney Company’s head honchos, CEO Michael Eisner and his successor Robert Iger, arrived in the capital today on the first leg of an official visit and met up with President APJ Kalam.

    As was reported by Indiantelevision.com last week, Disney executives are due to meet Prime Minister Manmohan Singh, who is returning from a foreign trip tonight, and some other government representatives. The meeting with the PM is likely tomorrow, though a definite time has not yet been given.

    During a 15-minute courtesy call on President Kalam, Eisner and Iger, reportedly, discussed things in general, while briefing the former on various business activities of Disney in India that are mostly related to children.

    Kalam, according to government sources, also gave the foreign visitors, accompanied by the India head of Disney’s business Rajat Jain, a guided tour of his official website.

    Generally media barons and senior execs of such companies don’t call on the President, preferring the Prime Minister instead, but Kalam’s fondness for children-related issues, probably, made Disney overturn set norms to call on Kalam. An appointment for the meeting was sought late in March.

    Eisner and Iger began the first leg of their India visit in Delhi today and are due to arrive in Mumbai on 27 April (Wednesday). The duo will be flying out on Thursday, thus ending their four-day visit to India.

    Apart from the President and Prime Minister, they are due to meet I&B minister Jaipal Reddy as also some other government officials as well as business leaders to explore and discuss future opportunities for Disney in the burgeoning Indian market.

    Eisner says, “Throughout its history, Disney has connected with audiences around the world through its high-quality, family-oriented movies, television shows, theme parks, consumer products and live productions. We are committed to strengthening the affinity people around the world have for Disney’s characters, stories and other entertainment offerings, especially in dynamic, expanding markets like India, where our content already enjoys particularly high recognition and positive associations.”

    Iger, who is due to take over the reins at Disney from 30 September 2005, says, “We are tremendously pleased with the early success of Disney Channel and Toon Disney, which are critical components in building our brand awareness and driving growth in India. Disney is focusing its energies on creativity and innovation combined with the application of new technologies to drive worldwide expansion of all its core businesses.”

    The Walt Disney Company has identified international expansion as one of its key strategic priorities and maintains a particular focus on growing markets such as India. Disney currently has several established businesses in India such as film distribution, consumer products and media networks. The company’s two channels – The Disney Channel and Toon Disney launched in India in December last year.

    Disney’s current presence in India also includes branded mobile content. In December 2004, the Walt Disney Internet Group, along with Indiagames, introduced Disney games, wallpapers and ringtones in the market; the content of which, is also available on AirTel.

    Disney Consumer Products is establishing Disney Corners at select retail outlets throughout the country from which it will sell licensed merchandise. Apart from that Disney Publishing is also in the process of entering the market.

    Walt Disney International president Andy Bird says, “Disney’s presence in India today is well poised for growth. We are developing, distributing and licensing content that makes efficient and effective use of our popular brands and creative properties, all of which we expect to contribute to building robust businesses over the long term.”

  • Walt Disney’s Eisner coming to India

    Walt Disney’s Eisner coming to India

    MUMBAI: India seems to be the favourite destination for media czars. After News Corp chairman Rupert Murdoch it’s the turn of Walt Disney Company CEO Michael D Eisner to come for a high-profile visit.

    His two-day India tour will start next week; the first halt being Delhi. This is part of the Asian leg of the Disney CEO’s tour. And he is being accompanied by his successor Robert A Iger who is slated to take over the reins at Disney from 30 September 2005.

    Eisner arrives at a time when the Walt Disney Company is attempting to widen its business presence in the Indian market.

    Though definite information on Eisner’s India agenda is not yet available — as it is still being finetuned — Indiantelevision.com learns that it would entail calling on senior government representatives and interacting with select industry people.

    Eisner is likely to call on prime minister Manmohan Sigh, and information and broadcasting minister Jaipal Reddy, apart from some other political and government functionaries, depending upon their availability as Parliament session would be on then.

    In Mumbai, Eisner is scheduled to meet up with the CEOs and the senior executives of media companies. The guest list for a bash being planned by Disney India would include representatives of companies like Star India, Sony Entertainment Television India, Zee Telefilms, The India Today Group and The Times of India Group.

    During his visit, Eisner would not only get a first hand look of the Rs 250 billion Indian media and entertainment industry, but also get to know how his company is fairing in India.

    Disney launched two of its channels; Toon Disney and Disney Channel in December, which have been making steady headway in the complex Indian market that is dominated by a fragmented cable distribution industry.

    Indiantelevision.com learns that a big bang marketing push would go into full throttle once distribution initiatives are fully in place.

    In India, Disney is looking at consolidating its TV channel business before diversifying into other segments of media and entertainment.

    As part of the long term plan, a Disney theme park in India, would not be out of place, for which land, reportedly, has been identified on the outskirts of Delhi.

    The importance of the theme park can be gauged from the $3.5 billion Hong Kong Disneyland project, which is a joint venture between Disney and the Hong Kong government. It is expected to open to the public in 2006.

  • Disney spends over a million dollars on Eisner, Iger security

    MUMBAI: Media conglomerate Disney spends quite a packet to make sure that its CEO Michael Eisner and COO Bob Iger are safe.

    The company revealed that it has spent $735,000 in its latest fiscal year on security systems, security advice and personal protection services for Eisner.

    Disney also spent more than $470,000 in the fiscal ended 30 September 2004 on similar security protection for Iger

    Media reports indicate that disclosures about the security measures — which cost Disney a similar amount the prior year — came in the proxy statement Disney issued in advance of its annual meeting. This will take place on 11 February.

    Iger, who also didn’t receive any new stock units in 2004, earned $8 million in salary and bonus for the latest fiscal year, and received $3.5 million in payouts for previously awarded long term incentive plan grants. In 2003, Iger received $5.4 million worth of salary and bonus, and $1 million in stock units.

    Regarding Eisner’s and Iger’s security systems and services, Disney said that the measures are incurred as a result of business-related concerns, not for the personal benefit of the executives, and thus should not be classified as compensation.

    Meanwhile a report in Dow Jones states that Disney has agreed to formalise the separation of the positions of chairman and chief executive. This should pacify shareholders who want a permanent split of the two jobs.

    As part of a negotiated settlement, Connecticut Retirement Plans and Trust Funds has withdrawn its shareholder resolution filed in advance of the 2005 annual meeting in light of the company’s pledge to amend its corporate- governance guidelines.

    In a separate release, Disney said that the board has amended its corporate- governance guidelines to “embody” the policy after input from shareholders. Disney chairman George Mitchell said, “The board policy, now embodied in the guidelines, embraces principles of good corporate governance that the company is committed to pursuing.”

  • Disney to name Eisner’s successor by June 2005

    Disney to name Eisner’s successor by June 2005

    MUMBAI: Following a meeting that was held on 21 September, the board of the Walt Disney Company announced that a successor to CEO Michael Eisner would be chosen by June 2005.

    An official release, revealing the outcome of the board meeting, says the Disney board plans to engage an executive search in selecting a CEO who possesses the qualities and experience that are essential for this important position.

    “The Board will engage in a thorough, careful, and reasoned process to select as the next CEO the best person for the company, its shareholders, employees, customers, and for the many millions of others who care so much about the Walt Disney Company,” offers the release.

    Earlier last week Eisner had announced that he was stepping down as CEO. He had anointed company’s second-in-command, the president and COO, Bob Iger as his successor.

    “Bob Iger is the one internal candidate,” the release says. “He is an outstanding executive and the board regards him as highly qualified for the position. However, the board believes that the process should include full consideration of external candidates as well.” 

    Once a new CEO is named, the board will then select a new chairman, adds the release.

  • Disney CEO Eisner to step down in 2006

    Disney CEO Eisner to step down in 2006

    MUMBAI: Walt Disney has said that its CEO Michael Eisner will step down in September 2006, when his contract expires.
     

    In a letter to the Disney board Eisner said, “Until then I shall continue to exert every effort to help the company achieve our goals, to assist the board in selecting the new chief executive officer, and to make the transition expeditious, efficient, and smooth and easy.

    “I know that it has been a very challenging time for the board members during this period, and I am most grateful for all of the time and effort, consideration and support, and concern for the company that all of you have demonstrated.”

    However Antony Gifford, who helps manage about $2 billion of US stocks at Henderson Global Investors in London was quoted in a Bloomberg report expressing disappointment that Eisner would only leave after another two years.

    ” We believe that Disney has some attractive assets that are worth more than the share price suggests. But Eisner wasn’t the man to unlock that value.”

    Meanwhile, in an earlier interview with the Wall Street Journal, Eisner had maintained that he didn’t make the decision to step down because of pressure from Roy Disney and Gold or Comcast’s takeover bid.

    As had been reported earlier by Indiantelevision.com, Eisner had earlier said that he wanted Disney President and COO Robert Iger to succeed him. However, in his letter to the board, Eisner made no mention of Iger

    It may be recalled that in November 2003 former Disney directors Roy Disney and Stanley Gold had resigned from the board to wage a campaign against Eisner.

  • Disney’s Eisner tags No. 2 Iger as the successor

    Disney’s Eisner tags No. 2 Iger as the successor

    MUMBAI: Disney’s CEO Michael Eisner has finally broken his silence and has anointed company’s second-in-command, the president and COO, Bob Iger as his successor.

    In the protracted fight to oust Eisner from control of Disney, a chief complaint about the longtime chairman was that he had refused to name a successor. The news comes months after the ouster movement failed to entirely uproot Eisner.

    Eisner, in an interview with the Los Angeles Times, said that Iger was his choice to take over the media and entertainment empire at his retirement, which could come in 2006 when his contract expires.

    According to media reports, Eisner is quoted as saying about Iger that, “There’s nobody who has a better education and training to do that job.”

    While Iger has responded favourably, as has told Times. “I have a right to be taken seriously. I feel I know the company well. I have the knowledge. There comes a time when it’s appropriate to say, ‘Hey, this is a job I’m interested in.’ “

    But all depends on how seriously Disney board will take suggestion and how well both Eisner and Iger do over the coming year, the reports indicate.

    In March, Eisner was effectively demoted from chairman and CEO to CEO as a defensive measure by the board to prevent his full ouster when a huge no-confidence vote was delivered by major stockholders at the company’s annual meeting.

    But there are likely to be some conflicting views as the reports indicate that the former No. 2 at Viacom, Mel Karmazin is also being considered for the post, the reports indicates.

    The reports indicate that the biggest barrier to Iger’s claim to the CEO slot will be his performance overseeing ABC, thus far. ABC has finished fourth among households and adults 18-49 last season, dipping 19 percent versus the previous year among 18-49s. A big part of the problem, has been the tendency of both Eisner and Iger to micro-manage, often with disastrous results.

    But the network has been widely hailed for its new programming slate for the 2004-’05 season, which may be the strongest of any network based purely on content and a strong cookie point for Iger, indicate the reports.

  • Disney terms Miramax unprofitable; Weinsteins ready to buy back

    Disney terms Miramax unprofitable; Weinsteins ready to buy back

    MUMBAI: The souring relationship between Miramax studio and its parent Walt Disney Company has triggered a war of statements. While Disney has downright given Miramax the loser’s tag, founders and co-chairmen of Miramax — Harvey and Bob Weinstein — have asked Disney to quote a sum so that they can buy back the studio.

    Last week, Eisner went on record saying Disney had no plans to sell Miramax though the studio had been unprofitable in three of the past five years. While opposing Eisner’s statement, Miramax spokesman Matthew Hiltzik said the studio was making money, as evidenced by Disney’s having had to pay the Weinsteins a bonus that had been predicated on Miramax’ turning a profit.

    ”If Disney thinks Miramax is so unprofitable, Bob and Harvey would be happy to buy it back if Disney names the price,” Hiltzik was quoted as saying in media reports.

    This made Disney President Robert Iger to extend his support to Eisner by claiming Miramax has been unprofitable in recent years.

    ”They’re not taking into account standard overhead, distribution fees, bonuses that we pay Bob and Harvey. Nor are they applying current accounting rules. So, yes, there are two sides to the story, but I think our side of the story is a rather credible side,” Iger was quoted as saying in reports.

    Disney acquired Miramax 11 years ago. It is reported that Disney intends to pay Weinstein brothers less money and to impose caps on exploding budgets at Miramax. The studio known for breeding small and inexpensive films has been focusing on expensive projects of late as last year’s $80 million Cold Mountain and $70 million The Green Hornet, which is currently under production.

  • Will Eisner survive the ‘Spring at Disney’?

    Will Eisner survive the ‘Spring at Disney’?

    MUMBAI: They call it Spring at Disney – the Disney corporate board meeting held every April.

    This year’s meet, that is currently underway, happens to be one of the most closely watched corporate board meetings in recent memory. The meet will decide the fate of CEO Michael Eisner who was ousted from the post of chairman following an investors’ revolt on 3 March. Till then, he was holding the twin posts of chairman and CEO.

    Media reports suggest that some high-profile investors have called on Disney directors to dismiss Eisner, whose contract ends in September 2006. But not many Disney observers are anticipating such drastic action as Eisner’s dismissal. Directors of Disney are also expected to analyse the post-March developments during the meet.

    In March, Eisner had agreed to step down as chairman after 43 per cent of shareholders withheld their votes from Eisner has been blamed by some for the lackluster performance of the media-entertainment powerhouse in recent years. The company has acknowledged several of its movies biting the dust at the box-office, including the recent releases Home on the Range and The Alamo. Disney has also moved to shake up the management at its struggling ABC (American Broadcasting Company) television network.

    The meeting has attracted a lot of media glare also because it might signal the future of Comcast Corporation’s unsolicited bid. Aspiring Disney-owner Comcast has been keeping mum in recent weeks on its outstanding offer for Disney, as they are awaiting quarterly earnings announcement this Wednesday. At the same time, some reports suggest that Comcast is ready to withdraw its bid.

    “The board at Disney has two options: oust Mr. Eisner today in order to open the door to an internal successor or keep him and his preternatural resistance to grooming senior executive talent at the expense of his perceived responsibility for Disney’s performance,” reads an article in Red Herring.com.

    Meanwhile, dissident shareholders Roy E. Disney and Stanley Gold lashed against the Disney’s director board in their web site www.SaveDisney.com Making a dig at Eisner and his colleagues, Stanley Gold writes: “Well, Spring at Disney is here again! And do you know how we can tell? They’re rearranging the deck chairs again at ABC. It’s an annual festival, a little like Musical Chairs, where everyone moves up, down, or over a place or two and pretends it’s the solution to the fourth place dilemma. And there are always a few faces missing when it’s over.”

  • Comcast bullish even after being turned down by Disney

    Comcast bullish even after being turned down by Disney

    MUMBAI: Even after the Walt Disney Company gave the thumbs down to Comcast’s unsolicited bid yesterday, the rejected yet bullish cable giant is betting that time will push Disney’s stock price back down to a level that will make its original offer look good.

    After hearing that Disney’s board had rejected its hostile bid, Comcast sources were putting out the word that it had no intention of increasing the bid on its own. One source which was close to the cable giant was quoted in the BusinessWeek Online saying, “We’re not going to be bidding against ourselves. We think we put a pretty fair bid on the table the first time.”

    In one media report Comcast chairman Brian Roberts made it clear that he’s “a disciplined buyer,” ready “to walk away from the deal.” Another media report said that it was likely that Comcast would increase their bid to something closer to a single share of Comcast for a share of Disney. As for the cash component, they could sell off some assets — like the Golf Channel or one of the smaller cable systems. And Comcast could hit up money-rich Microsoft, already a seven per cent owner, for some cash in return for added stock that comes with a shareholder agreement preventing the software giant from exercising further control.

    Further complicating matters for Roberts, Disney chairman Eisner has his board’s support and is showing he intends to keep running his company. Indeed, the day after his board rejected Comcast’s bid, Eisner announced the purchase of Kermit the Frog and other characters from Jim Henson Co.

    All that could change in the coming weeks, as the 3 March annual meeting draws closer. At that point, by Comcast’s reckoning, the difference between the two companies’ stock prices will have widened further — making Comcast’s shares even more attractive.

    On the other hand, of the most likely candidates to consider competing bids, Viacom has already told investors and analysts that it is not interested, and Time Warner, just coming out of its ill-fated union with America Online, seems unlikely to take on another megamerger.

    Some analysts said that Comcast may bid more for the Mouse House, but it would be very disciplined in not offering more than one share of its stock for each share of Disney because any higher offer would leave Comcast with less than 50 per cent of the combined company. Its current offer is for 0.78 share of Comcast for each Disney share.

    For now, the outcome of Comcast’s overture is uncertain. After all, it is not unusual for the price of a target company’s stock to surpass the bid price. Analysts say that Comcast could sit on its offer for as long as several months as it waits for stock prices to stabilise and shareholder support to work in the deal’s favor. Of course, Comcast would have to change its strategy if another bidder emerges. But thus far, analysts have been hard-pressed to come up with other possible bidders for Disney.

    All said and done, the crux of the matter is that Comcast will have to prove that it can improve Disney’s assets and it will have to raise its bid to make the acquisition work.