Looks like Eisner's working against a deadline...

[Mop]

According to the Dow Jones wire service, the New York Times reports that Eisner has until November. The only question remaining is: how much damage can he do before then?

http://biz.yahoo.com/djus/020814/200208140346000204_1.html

Thanks,
Raul/Mop

 

[manning]

Here's a more detailed article from the LA times

http://www.latimes.com/business/la-fi-disney14aug14.story?coll=la-headlines-business

 

[larworth]

I assume there is no truth to the rumor that Eisner is having an exhaustive family tree prepared on Ms Van de Kaamp to see if there are any distant relatives now working anywhere at Disney.

 

[BRERALEX]

MANNING COULD U LINK IT I THINK IT NEEDS A PASSWORD

 

[Mop]

Here's the original NY Times article. You may need to register but it's free, quick and painless:

http://www.nytimes.com/2002/08/14/business/media/14PLAC.html

Raul/Mop

 

[BRERALEX]

WELL IF MOP SAYS ITS PAINLESS IM IN!!!! THANX.


SO IS THERE A POSSIBILITY AT THIS POINT IN GENERAL FOR A HOSTILE TAKEOVER OR HUGE SHAKEUP INSTEAD OF WAITING FOR NOV?

ALOT CAN BE RUINED BEFORE NOV. IMO OPNION THE LASTTHING ON m.e.'S MIND IS THE PARKS AND GETTING THE COMPANY BACK IN SHAPE BUT MORE ON GETTING MORE MONEY.

I HOPE I HAVE TO EAT THOSE WORDS BUT ITS NOT LIKE HE'S PANICKING SWEATING BULLETS TRYING TO GREEN LIGHT E-RIDES FOR US TO ENJOY.

 

[Captain Crook]

I think a deadline scenerio is great. He can't take the company down a path to nowhere without board intervention at this point and seriously why would he.

We're starting to get too much "Eisner is the devil" talk arond here again. He's not trying to ruin Disney. He doesn't want a negative legacy. The best hope for all of our dreams is that he miraculously comes through in he crunch and is allowed to groom a successor with the help of the board and will be gone by 06 or perhaps earlier if face can be saved...

The other scenerio is that he could continue to fail and be dumped by the board. In which case he gets a HUGE payout and Disney is left with no one running the show or at the very least someone hastily chosen...This has to be a very unappealing solution if you love Disney, no matter how much you hate Eisner...

 

[Bstanley]

Well put Capt.

I certainly feel that The Big ME has run his course at Disney, but I for one wish there was some more obvious candidate standing in the wings.

It feels very similar to 'The Promote Paul Pressler campaign' it was successful, but he ended up taking over all the parks and lo & behold the result is DCA and PC.

 

[Luv2Roam]

A board should stand behind the CEO, just as bosses should stand behind the employees. But it does get to a point they have to consider if he is an anchor that will drag them down too, or a real asset.
I think the November time frame is fair. It's time to see what he can do, as well as the board.

 

[raidermatt]

I refuse to accept the notion that there is nobody out there who can lead Disney, or that it will take an extraordinary amount of time to find him/her.

It comes down to this... If there truly are board members that want Michael out now, or will push for it in November, then they most likely are working behind the scenes to find a successor.

If so, and if they go about their search in a responsible manner, a replacement will be found.

If its just not possible to direct any kind of discreet search with Eisner still there, then yes, there will have to be an "interim" period of possibly several months.

But the company is already going in the wrong direction, and while I don't quite subscribe to the "blind chimp" theory, I do think it can move ahead for a few months and be no worse off.

My opinion is that this whole situation will play itself out within 6 months, possibly sooner, and a year at the most. Either Eisner will have turned things around sufficiently to get the stockholders/board off his back, or he will be gone. (takeover will again become a possibility as well if the stock continues to under-perform)

Its one thing to debate philosophy and long-term strategy, but a lot of people are losing a lot of money on this company, and clearly a significant portion of the responsibility falls on mgmt. I don't see how that can go on too much longer.

SOMETHING will happen.

 

[Another Voice]

First of all, there’s no such thing as “too much” Eisner- bashing. Anyone who makes a billion dollars in six years for doing nothing should be able to withstand a few pointed comments on an Internet discussion board.

Second, there is a lot of evidence that Eisner would very definitely “ruin” Disney if it would make him more money. He was in very serious talks to sell all of Disney to Yahoo! at the height of the Internet bubble. He blew $5 billion of cash on Fox Family when everyone inside the company and in Hollywood told him he was a fool for doing so. And most importantly – he’s already ruined huge chunks of the company. Feature Animation is gone. WDI is gone. The Stores are waning. The theme parks are in trouble. ABC is fourth and falling. Each area has been trashed over the course of five years of “cost savings”, “maximizing returns” and “give me one more chance”. He hasn't shown any business genius for the better part of a decade now - why wait for a sudden reversal?

Eisner does not know what to do. He will continue to trash the company for short term profits simply to protect his power. He is not interested in a “legacy” at Disney. He’s only interested in the legacy of his bank account. Once Eisner is out of Disney, he knows he’s out of Hollywood and he’s out of business. He will do anything he has to in avoiding exile; if that’s not possible then he will make sure Elba is as opulent as possible.

I firmly believe that Disney does not need a superstar CEO right now. The problems with The Company are very serve and are at the business unit level. NO ONE is going to be able to wave a magic wand in Burbank and fix everything. Disney will need people inside each and ever unit to repair the damage. A solid manager for the parks that worries about nothing but the parks. A good studio head that knows how to make movies and doesn’t worry about Happy Meal tie-ins. Someone who knows the first thing about consumer products to actually run Consumer Products. Those people exist in each unit of The Company.

So I don’t really care about who takes over Eisner’s throne immediately. But I do really care about the guy or gal who will boot Pressler’s rear out of the office.

 

[HorizonsFan]

I do really care about the guy or gal who will boot Pressler’s rear out of the office.

I agree. Why a person with a retail background was put in charge of a creative entertainment division has always mystified me...
Go back to basics. Find qualified people with the proper backgrounds to effectively run the different divisions of the company and give them the space they need to be successful. Micro-management from the CEO's office cannot work in a company as diversified as WDC.

 

[Bstanley]

Amen brother!

Good point about what the next CEO needs to be MUCH better at than the present one - picking capable subordinates who he/she can work with.

With The Big ME's poor performance in this area we can hope that the board is VERY sensitive to selecting someone better.

 

[DisneyKidds]

It seems the chatter has most definitely turned into talk. However, as the snippets read.....

Eisner has until at least November to show that he is addressing problems.

If I were Eisner I wouldn't think that sounds too ominous in the short term given his croanies on the board. So maybe he shows a thing or two that could be considered steps by this November deadline (who knows how little it might take to do this) - that might mean that he could be around for a whole lot longer.

 

[DVC-Landbaron]

He will do anything he has to in avoiding exile; if that’s not possible then he will make sure Elba is as opulent as possible.

GOD!! I love this guy's style!! This is, by far, the best line I've seen around here in a long time!!!

AV, your metaphors are remarkable!!! Thanks for the laugh!!

 

[manning]

The deadline mandate is an indication that Disney and Gold are serious about what they say. In negotiations a deadline is a trigger mechanism to force the other party into action. The deadline may change or go away, depending what action is taken.

This deadline may indicate several things, that Disney and Gold:

1. have a CEO candidate in mind and may have approached him/her and got a positive response.

2. Believe they may have enough votes on the boad to remove Eisner.

3. May have enough shareholders behind them or investor(s) willing to buy enough shares to force Eisner out. (I believe that is how Disney removed Miller(?) by getting the Bass Bros to buy stock.)

Also, Eisners camp may be getting nervous. In the LA times article this statement appears "Disney sources counter by painting Gold in particular as an isolated malcontent whose views don't reflect the majority of the board." They are trying to discredit Mr. Gold.

It will be an interesting several months.

 

[airlarry!]

May have enough shareholders behind them or investor(s) willing to buy enough shares to force Eisner out.

Airlarry! sidles over to Landbaron with an eyebrow raised conspiratorially.

"Psst. LB. How many shares ya got? I got my Fitty." (*)

Landbaron looks up from the island in his kitchen where he is attempting to follow an internet recipe for Kungaloosh!

"Airness, hmm...let me check my wife's IRA. Whatcha got in mind?"

Airlarry! puts his hand on one side of his mouth, in a futile attempt to avoid the bugs Ei$ner has placed in the Baron's Sosa bobblehead doll over the microwave.

"AV says he is in. He'll run the studio if we can convince The Scoop to bird dog enough shareholders together for The Coup."

Landbaron takes a long sip from his Kungaloosh! and then sits down in his replica Wrigley Field seat.

"I'm in. The Game is afoot."





* Bad reference to the Sopranos. Shameless plug: 3rd season out Aug 27th.

 

[airlarry!]

Seriously, it would be interesting to 'count the noses' and see who on the Board is defecting (probably only a couple) and who could be counted on to defect if things slide further.

I know, I know, I can hear AV right now saying the board in place has been rated by many, many different financial people as being one of the most, if not the most) in-the-pocket boards of any major corporation. They are all friends of ME...from his teachers to his architect friends.

But, I'm just trying to think of the angle of the new 'corporate board as watchdog' sentiment allegedly sweeping the country now. How will that affect this board's thinking?

 

[Another Voice]

The battle is going to be nasty. Don’t expect Eisner to simply roll over unless it’s to grab for a huge payday. The board really is very weak and stuffed with people (much like Eisner) that are WAY over their heads. Does anyone really think a teacher, an actor, an architect and a newspaper editor are going to out manuver a Hollywood suit on his own turf?

I’m half expecting for Stanley Gold to be kicked off the board. Eisner will see Disney fail before he gives up – it’s just the kind of guy he is.

 

[airlarry!]

If Gold is kicked off the board, no matter what the public p.r. memo states the reason, wouldn't you have to take that as a sign that Ei$ner's grip on the board is iron-fisted, and the coup is over? It would be the shot over the bow by Ei$ner toward his critics.