Roy Disney Resigns and calls For Eisner's Resignation
- Thread starter pirateparrot
- Start date
That letter is strong. What is going to happen?Now that Roy is gone who will try to run the company the way Walt's direction took it. Even with Roy there the company has fallen to low depths and now if it is not careful it will sink all the way.
The parks are not as clean and maintained as they used to be. In my 2000 visit I found lots of lights off the buildings on Main St. USA and there were holes in the people mover seats. The Orlando Sentinel had a front page story with pictures showing the disrepair.
In the eighties Disney used to pride it self on the way they used to continually paint the parks and now it is rarely done.
The young people of today cannot remember the good old days but I can remember when you stood in a long line there were air conditioned pipes overhead blowing cool refreshing air on you. It was a welcome relief.
It is time for us all to wear black and go into mourning.
The parks are not as clean and maintained as they used to be. In my 2000 visit I found lots of lights off the buildings on Main St. USA and there were holes in the people mover seats. The Orlando Sentinel had a front page story with pictures showing the disrepair.
In the eighties Disney used to pride it self on the way they used to continually paint the parks and now it is rarely done.
The young people of today cannot remember the good old days but I can remember when you stood in a long line there were air conditioned pipes overhead blowing cool refreshing air on you. It was a welcome relief.
It is time for us all to wear black and go into mourning.
Figmentrocks
Earning My Ears
- Joined
- Jan 28, 2002
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- 69
Lots of great points. Just to throw in my few cents.. if they are worth any. 
The market is most likely going to look at this in a very negative light over the next day. Roy Disney's timing is rather, well, current with stories over the past few days. Disney admits to their poor maintenence on Thunder Mountain Railroad, and the letter & story is leaked after Disney has taken another property, The Haunted Mansion, and many will argue exploited to make another buck.
Purely my opinion, but I feel that Mr. Disney isn't going to let his family name go down, and things will be brewing over the next several months. In our house, we say that Disney has 'whor*d out' the brand and company, obvious Roy Disney has seen much of the same.
It looks like he's another person out there who isn't impressed with California Adventure.
The market is most likely going to look at this in a very negative light over the next day. Roy Disney's timing is rather, well, current with stories over the past few days. Disney admits to their poor maintenence on Thunder Mountain Railroad, and the letter & story is leaked after Disney has taken another property, The Haunted Mansion, and many will argue exploited to make another buck.Purely my opinion, but I feel that Mr. Disney isn't going to let his family name go down, and things will be brewing over the next several months. In our house, we say that Disney has 'whor*d out' the brand and company, obvious Roy Disney has seen much of the same.
It looks like he's another person out there who isn't impressed with California Adventure.
Planogirl
I feel the nerd in me stirring
- Joined
- Aug 11, 2000
- Messages
- 49,742
I'm hoping that Roy has another reason for doing this which isn't apparent yet. I'm particularly impressed with his list of problems and I can't imagine him just simply walking away from his heritage. But this is worrisome. 
Anyone want to speculate as to what effect this will have on tomorrow's closing price? I'm guessing less than $20/share.
I wish Eisner would go, go go.... let him go to Universal and "help" them with their parks.... hehehe
Ironically, a Dr Suess quote is appropriate to Roy's letter: "unless someone like you care a whole awful lot, nothing is going to get better-- its not." We can all hope that this big bang is what it takes to get the anti-Eisner coup started!
I wish Eisner would go, go go.... let him go to Universal and "help" them with their parks.... hehehe
Ironically, a Dr Suess quote is appropriate to Roy's letter: "unless someone like you care a whole awful lot, nothing is going to get better-- its not." We can all hope that this big bang is what it takes to get the anti-Eisner coup started!
ohanafamily
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Let the Chior sing AMEN!!!
Another Voice
Charter Member of The Element
- Joined
- Jan 27, 2000
- Messages
- 3,191
Very quickly and much blunter than normal
Roy took a walk before the Eisner threw him out the window. The age limit on the board is a fig leaf; it's been ignored for years for current board members and it's application here is a ploy. And Eisner was more than willing to quickly renegotiate his employment contract when he destroyed the company's profit; to claim "rules are rules" now is just another example of his maliciousness. And you haven't heard the last about these circumstances yet
Eisner has believed for about five years now the only way to "maximize shareholder value" is to sell The Company. For about 18 months there were serious talks between him and Disney/Gold to separate the company: Roy to take "classic Disney" (animation, licensees and theme parks) and Eisner to take CapCities (ABC, cable, Touchstone & Miramax). The Roy and Diane Disney factions were never able to meet Eisner's increasing demands although the tried very hard.
Eisner was extremely disheartened by the lack of feeding frenzy surrounding the Vivendi/Universal sale. He had hoped that another round of media buying frenzy so that Disney could be sold without anyone looking too closely at the deal (as happened last time with AOL and TimeWarner, etc.)
Since a sale will have to be made on its merits, Eisner is killing off the "unprofitable" or "unfashionable" areas of the company: animation, retail, music, Broadway and others on the hit list. He's very interested in selling the hotels at WDW (and probably also the DVC) to an outside group as well. In a perfect world Eisner would like to either spin the parks off into a separate company (the core of the Roy/Diane plan) or sell them off piece by piece. Eisner needs the cash from the sale to pay down the debt and because the parks don't give the immediate returns that a movie or TV show does. Disney has become a wholesale operation it takes product in one end of the warehouse and ships it out the other as quickly as possible. The ideas of "investment" and "creation" are curse words these days.
Eisner is terrified of a serious takeover attempt orchestrated by someone else for a simple reason: he wants the deal organized to make him obscenely rich. What happens to the company or to other stockholders is simple beneath his contempt.
It's rumored that Eisner loaded up the company with a couple billion in debt when they bought out the Bass Brothers. It was done to keep the Disneys or anyone else from collecting enough stock to challenge Eisner. Most of this debt was short term (Disney doesn't have the credit rating for much else these days). If nothing changes then serious payment issues will soon appear.
Roy Disney's stock deal was a fairly complicated and new type deal. As I understand it, he sold some of his shares, but it will not be effective until some date in the future. He receives the money now and if the stock price is higher when the shares are actually sold, he will get the additional money if the stock goes down he doesn't loose a penny. He retains full voting rights to the stock. Roy knows a thing or two about making money.
If the European banks push things, Eisner will let Euro Disney default and close (again, get rid of the "unprofitable" operations). The company will not invest anymore money in the place, especially after the disastrous beyond description impact of Disney Studios Paris on EDL's balance sheet and operating profit. A rumor is that the last outside consultant's report on the solution to California Adventure was summed up in one word: bulldoze. And look for a "construction delay" in one of the hotels a Disneyland Hong Kong; early projections indicate there so little at the park it will not be successful (as has also been reported elsewhere, the current joke around WDI is that DLHK will be so small they might as well include a drive-through window).
Mr. Disney's letter is spot on. It is a summary of what everyone has known for years but too many people through ignorance, sloth or greed of their own chose to ignore.
P.S. The process of dismantling the company will probably pick-up speed now.
Roy took a walk before the Eisner threw him out the window. The age limit on the board is a fig leaf; it's been ignored for years for current board members and it's application here is a ploy. And Eisner was more than willing to quickly renegotiate his employment contract when he destroyed the company's profit; to claim "rules are rules" now is just another example of his maliciousness. And you haven't heard the last about these circumstances yet
Eisner has believed for about five years now the only way to "maximize shareholder value" is to sell The Company. For about 18 months there were serious talks between him and Disney/Gold to separate the company: Roy to take "classic Disney" (animation, licensees and theme parks) and Eisner to take CapCities (ABC, cable, Touchstone & Miramax). The Roy and Diane Disney factions were never able to meet Eisner's increasing demands although the tried very hard.
Eisner was extremely disheartened by the lack of feeding frenzy surrounding the Vivendi/Universal sale. He had hoped that another round of media buying frenzy so that Disney could be sold without anyone looking too closely at the deal (as happened last time with AOL and TimeWarner, etc.)
Since a sale will have to be made on its merits, Eisner is killing off the "unprofitable" or "unfashionable" areas of the company: animation, retail, music, Broadway and others on the hit list. He's very interested in selling the hotels at WDW (and probably also the DVC) to an outside group as well. In a perfect world Eisner would like to either spin the parks off into a separate company (the core of the Roy/Diane plan) or sell them off piece by piece. Eisner needs the cash from the sale to pay down the debt and because the parks don't give the immediate returns that a movie or TV show does. Disney has become a wholesale operation it takes product in one end of the warehouse and ships it out the other as quickly as possible. The ideas of "investment" and "creation" are curse words these days.
Eisner is terrified of a serious takeover attempt orchestrated by someone else for a simple reason: he wants the deal organized to make him obscenely rich. What happens to the company or to other stockholders is simple beneath his contempt.
It's rumored that Eisner loaded up the company with a couple billion in debt when they bought out the Bass Brothers. It was done to keep the Disneys or anyone else from collecting enough stock to challenge Eisner. Most of this debt was short term (Disney doesn't have the credit rating for much else these days). If nothing changes then serious payment issues will soon appear.
Roy Disney's stock deal was a fairly complicated and new type deal. As I understand it, he sold some of his shares, but it will not be effective until some date in the future. He receives the money now and if the stock price is higher when the shares are actually sold, he will get the additional money if the stock goes down he doesn't loose a penny. He retains full voting rights to the stock. Roy knows a thing or two about making money.
If the European banks push things, Eisner will let Euro Disney default and close (again, get rid of the "unprofitable" operations). The company will not invest anymore money in the place, especially after the disastrous beyond description impact of Disney Studios Paris on EDL's balance sheet and operating profit. A rumor is that the last outside consultant's report on the solution to California Adventure was summed up in one word: bulldoze. And look for a "construction delay" in one of the hotels a Disneyland Hong Kong; early projections indicate there so little at the park it will not be successful (as has also been reported elsewhere, the current joke around WDI is that DLHK will be so small they might as well include a drive-through window).
Mr. Disney's letter is spot on. It is a summary of what everyone has known for years but too many people through ignorance, sloth or greed of their own chose to ignore.
P.S. The process of dismantling the company will probably pick-up speed now.
I knew when Roy sold a pile of stock this summer and bought a creamation company Disney was in trouble.
WE were at Magic Kingdom after hearing word that ME would be there for the ceremony of Mickey's bday Nov. 18th and the unveiling of the 75 statues. We were very much unimpressed with his pr at this event. He was having pics taken w/Mickey and he paced around forever on his cell phone like he was too busy for this. The crowd was taking pics and waiting for him to pass thru. He signed a few autographs but it was obvious he reluctantly did so, and was very short and unfriendly with people. Who does he think pays his salary? He should have been flattered ANYONE would want his autograph. After Roy stepping down, I think he should go. It's long overdue. I think he should be cast with Disney's other villians. He didn't impress me a bit.
WE were at Magic Kingdom after hearing word that ME would be there for the ceremony of Mickey's bday Nov. 18th and the unveiling of the 75 statues. We were very much unimpressed with his pr at this event. He was having pics taken w/Mickey and he paced around forever on his cell phone like he was too busy for this. The crowd was taking pics and waiting for him to pass thru. He signed a few autographs but it was obvious he reluctantly did so, and was very short and unfriendly with people. Who does he think pays his salary? He should have been flattered ANYONE would want his autograph. After Roy stepping down, I think he should go. It's long overdue. I think he should be cast with Disney's other villians. He didn't impress me a bit.
mickey1010
Mouseketeer
- Joined
- May 30, 2001
- Messages
- 115
I'm usually an optimist...so hopefully this is the first step towards improvement.
Believe it or not, I think I am more likely to purchase additional Disney stock now than I was yesterday. It now seems like a stronger mid-to-long term investment, granted there are numerous unknowns which makes it pretty risky. However, like I said earlier, I'm an optimist and definitely not an investment guru so that's just me thinking out loud!
Even though the board may be comprised of a number of Eisner mini-me's, a statement that strong by a guy with the last name of Disney will definitely cause all involved to ask some questions and look more closely at the current state of the company.
If anything, this will bring more life to this board which has been pretty quiet lately. There are too many of you with your own ideas on where Disney is headed to keep quiet on this one!!
Believe it or not, I think I am more likely to purchase additional Disney stock now than I was yesterday. It now seems like a stronger mid-to-long term investment, granted there are numerous unknowns which makes it pretty risky. However, like I said earlier, I'm an optimist and definitely not an investment guru so that's just me thinking out loud!
Even though the board may be comprised of a number of Eisner mini-me's, a statement that strong by a guy with the last name of Disney will definitely cause all involved to ask some questions and look more closely at the current state of the company.
If anything, this will bring more life to this board which has been pretty quiet lately. There are too many of you with your own ideas on where Disney is headed to keep quiet on this one!!
Uncleromulus
Plain grey will be fine
- Joined
- Jan 28, 2001
- Messages
- 15,529
Pretty serious development, that's for sure.
I would imagine that this will--eventually--mean that Eisner will "go". But the bigger question is--WHO will take his place??
Rough sailing ahead--and lots of theories as to what to do to get the Company back on track.
I would imagine that this will--eventually--mean that Eisner will "go". But the bigger question is--WHO will take his place??
Rough sailing ahead--and lots of theories as to what to do to get the Company back on track.
ohanafamily
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- 6,316
I think he left out #8, Your policy shift from one of encouraging loyal patrons with one of romoving incentives to go to the parks, stores and other things, Examples include the Disney Club, The removal of other discount rates from the hotels (such as annual pass), merchandising TDS only to a small demographic and removing the adult products. This attitude that we are Disney come give us your money is not a very Disneylike idea.
Maybe Roy is still working on the deal to get the parks and let ME have the media; let him have ABC, Mirimax and the rest...Mr. Voice, could your vision come to fruition with this being the first step?
Maybe Roy is still working on the deal to get the parks and let ME have the media; let him have ABC, Mirimax and the rest...Mr. Voice, could your vision come to fruition with this being the first step?
HB2K
I Spit Hot Fire!
- Joined
- May 2, 2002
- Messages
- 611
Here's a good question..
We've always pondered just how many of the "uninformed" out there who don't read these boards saw the problems we often bandy about here.
With this news splashed all over EVERY major news site on their front pages no less, combined with the other recent news (the admission of fault in Big Thunder, etc) how many eyes will be opened to the problems with the company?
How many people are going to read Roy basically spell out the fact that any new Domestic parks are being done on the cheap and are failures? How will this news affect the company, even in the short term?
We've always pondered just how many of the "uninformed" out there who don't read these boards saw the problems we often bandy about here.
With this news splashed all over EVERY major news site on their front pages no less, combined with the other recent news (the admission of fault in Big Thunder, etc) how many eyes will be opened to the problems with the company?
How many people are going to read Roy basically spell out the fact that any new Domestic parks are being done on the cheap and are failures? How will this news affect the company, even in the short term?
Well- on the Today show the Wall Street Journal reporter basically made it seem like this was just an old man bitter over not getting to be on the Board anymore because he was too old...no credence or attention was given to the idea that ME has mistakenly run the company...the theme park problems were ascribed to post 9/11 doldrums and poor matt Lauer was not up to asking anything that would question this spin...so if this plays out this way---I would not count on this changing a thing.
Paul
Paul
caseymaureen
Mouseketeer
- Joined
- Sep 6, 2002
- Messages
- 172
As a former CM, I feel like Roy said all the things I wished I could have said to those at the top of the heap. Good for him for not going out quietly and for standing up for his uncle's and family's company. I hope his resignation and letter have a major effect on Eisner, his cronies, and the way the company has been handled.
PS- is anyone else wondering if Roy has been reading this board? I was surprised there was no mention of the missing chicken finger or the vaccum weepers!!!
PS- is anyone else wondering if Roy has been reading this board? I was surprised there was no mention of the missing chicken finger or the vaccum weepers!!!
HB2K
I Spit Hot Fire!
- Joined
- May 2, 2002
- Messages
- 611
I don't know how many more times Disney is going to be able to get away with the "he's disgruntled" spin.
If a former maintenance employee speaks out about maintenance proceedures...he's disgruntled.
If a board member speaks out about Eisner, She's disgruntled.
If a family member (and board member) speaks ill of Eisner, he's disgruntled.
Anyone see the pattern?
If a former maintenance employee speaks out about maintenance proceedures...he's disgruntled.
If a board member speaks out about Eisner, She's disgruntled.
If a family member (and board member) speaks ill of Eisner, he's disgruntled.
Anyone see the pattern?
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