What Would Roy Do?

[Sarangel]

It's an article on SaveDisney.com about how Roy O. Disney viewed the company after Walt died. It says a lot of the same things we've said here over the last couple of years, like

While Roy continually looked for ways for the company to grow, he wisely avoided expanding into areas that would not be in the best interests of the company's core businesses ... Roy knew that focusing on core divisions - animation, film/television production, Imagineering, and the Parks - was key to the financial health of the company.

One of the major problems with Michael Eisner is that he seems to have forgotten (or disregarded) this principle.

This article reminded me of a book I recently read, titled "Good to Great," that discussed what made companies stand above others. One of the principles was a "Type 5" leader, one who was more focused on the company than himself, was willing to take the financial risk to promote their core values, one who inspired rather than browbeat, and worked to preserve the long term interests of the company. It sounds to me that Roy O. was one of these leaders.

Sarangel

 

[KNWVIKING]

Deleted Post. Never mind, wrong Roy.

 

[KMovies]

What would Roy have done ...

never taken on ABC / ESPN

Sure - ABC loses some money, but ESPN and the cable units make up roughly 1/3 of the company's profits.

Guess he would have left that money out of the stockholder's hands.

Really, Roy doesn't have what it takes to run the company. Sorry.

 

[Jonothan]

The linked article is about Walt's brother Roy O., not Roy E. who is currently running the SaveDisney campaign.

 

[KNWVIKING]

***"The linked article is about Walt's brother Roy O., not Roy E. who is currently running the SaveDisney campaign."***

Ooopppps. Disregard my first post. I don't know my Roy E's from my Roy O's.

 

[Cricket2]

Originally posted by KNWVIKING
I don't know my Roy E's from my Roy O's.

Roy O's come in various frosted fruity flavors.

JC

 

[DVC-Landbaron]

KMovies. I agree!!

“What would Roy have done ... ” INDEED!!!

never taken on ABC / ESPN

Sure - ABC loses some money, but ESPN and the cable units make up roughly 1/3 of the company's profits.

Guess he would have left that money out of the stockholder's hands.

Again, I agree!! After all, it’s all about the money!! A refrain I’ve sung for many years now!! But no one will listen! I think a couple of casinos and strip joints in Downtown Disney would really rake in the cash! Cash that BELONGS in the shareholders pockets!! MISSED OPPORTUNITIES, I say!!! Imagine what an "R" rated Snow White would earn you!?!?! Profits galore in the cable market alone!!!!

And after that, we really need to start selling alcohol in Disneyland and the Magic Kingdom! MY GOD!!! It’s 2004 after all!! Why do we still hang on to those old fashioned ‘50s mores!?

So, I’m right with you! Anything for the bucks, whether it’s within the ‘core’ business or not! The shareholders deserve it!!

Really, Roy doesn't have what it takes to run the company. Sorry.

Right again!!! The current big cheese is doing an admirable job! Heck! If you don’t believe me, just look at all the shareholder support he has!! That ought to prove it!!

 

[raidermatt]

Kmovies, wrong Roy, but still, the idea that Roy O might not have purchased ABC/ESPN holds.

But we've got to take that strategy as a whole, and try to compare it to the opportunity cost of not investing in other areas.

Yes, ESPN has been great for Disney. However, analysts are now concerned that its growth period is over, and it may be facing new challenges with regard to its programming.

But there's the other investments in things like Go.com and Fox Family as well.

All the while, Disney chose to invest in CGI/3D later in the game, then shut it down, only to revive it after others were making gobs of money at it.

Investment in the existing parks has been sporadic, with maintenance becoming a significant issue out in DL.

Newer parks like AK, DCA and DLP have been opened with, shall we say, less than what the company is capable of providing. The result is debateable with AK, and a downright problem with DCA and DLP.

Certainly we can agree that Disney's decisions on where and how much to invest have at least been questionable?

(They must be doing something wrong (or at least less than optimal), as evidenced by the floudering stock over the last 10 years)

 

[manning]

Roy knew that focusing on core divisions - animation, film/television production, Imagineering, and the Parks - was key to the financial health of the company

Sarangel - A statement that has been proven many times by many major companies.

 

[Sarangel]

Really, Roy doesn't have what it takes to run the company. Sorry.

I suppose being dead does put a crimp in his style, but honestly, Roy *did* have it when it was his day. I believe that it was as much Roy's financial genius as his brother's imagination that created the Disney company that we all love.

quote:
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Roy knew that focusing on core divisions - animation, film/television production, Imagineering, and the Parks - was key to the financial health of the company
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Sarangel - A statement that has been proven many times by many major companies.

And the point I was trying to make in my original post - That current management has strayed from these core values in an effort to "update" the company. The only diversifications that I think have been successful are the Broadway Plays, the Disney Vacation Club & the Cruise Line. However, both the Cruise Line and DVC could be easily classed with the imagineering/parks core division. The rest of you may now correct the above statment based on your own perceptions.

Sarangel

 

[airlarry!]

I've always liked having ESPN as part of the Disney family...but Baron raises a good point.

So what if ESPN has had stunning returns since purchasing it? Warren Buffet preaches getting into companies for the long run not the short run. Can we reasonably expect ESPN to continue to literally CARRY the entire ex-Cap Cities division?

And did it contribute in any way to Disney's purchase of Fox "Ei$ner got swindled" Family?

Not to mention Baron's original point that the goal of this company is not necessarily just to make money in every form or fashion...the goal is to make money as an industry leader in family entertainment.

The problem, of course, is that not all of us believe that Disney's true mission statement is simply that...to be an industry leader in family entertainment.

Regardless, we will never know this answer, but would it really have killed the stock if Disney never purchased CapCities...especially if we assume that they never purchased Fox Family either?

 

[manning]

Some have made reference about ESPN bring in alot of money. However the result in the total purchase has been a net loss. It's time to get rid of the losers.

 

[AllisonG]

Get rid of + Losers = Eisner

 

[jerinknox]

Originally posted by DVC-Landbaron
KMovies. I agree!!

“What would Roy have done ... ” INDEED!!!



Again, I agree!! After all, it’s all about the money!! A refrain I’ve sung for many years now!! But no one will listen! I think a couple of casinos and strip joints in Downtown Disney would really rake in the cash! Cash that BELONGS in the shareholders pockets!! MISSED OPPORTUNITIES, I say!!! Imagine what an "R" rated Snow White would earn you!?!?! Profits galore in the cable market alone!!!!

And after that, we really need to start selling alcohol in Disneyland and the Magic Kingdom! MY GOD!!! It’s 2004 after all!! Why do we still hang on to those old fashioned ‘50s mores!?

So, I’m right with you! Anything for the bucks, whether it’s within the ‘core’ business or not! The shareholders deserve it!!


Right again!!! The current big cheese is doing an admirable job! Heck! If you don’t believe me, just look at all the shareholder support he has!! That ought to prove it!!

I love it! Could not have said it better......

 

[dcentity2000]

Originally posted by DVC-Landbaron
After all, it’s all about the money!! A refrain I’ve sung for many years now!! But no one will listen! I think a couple of casinos and strip joints in Downtown Disney would really rake in the cash! Cash that BELONGS in the shareholders pockets!! MISSED OPPORTUNITIES, I say!!! Imagine what an "R" rated Snow White would earn you!?!?! Profits galore in the cable market alone!!!!

And after that, we really need to start selling alcohol in Disneyland and the Magic Kingdom! MY GOD!!! It’s 2004 after all!! Why do we still hang on to those old fashioned ‘50s mores!?

So, I’m right with you! Anything for the bucks, whether it’s within the ‘core’ business or not! The shareholders deserve it!!

Money helps you build the dreams. It's not a case of anything for the pounds and pennies, just a case of seeking to earn what is needed to continue and thrive.

Originally posted by DVC-Landbaron
The current big cheese is doing an admirable job! Heck! If you don’t believe me, just look at all the shareholder support he has!! That ought to prove it!!

I have to agree with KMovies [assuming that he was referring to the current, SaveDisney.com Roy]. Just because one may view that Eisner is not fit for the job does not make the stated alternative any better. Personally, I'd put Steve Jobs above both, although I'd bet my last five pounds he'd leave a few jaws unhinged on these boards



Rich::

 

[Sarangel]

Money helps you build the dreams. It's not a case of anything for the pounds and pennies, just a case of seeking to earn what is needed to continue and thrive.

Rich, you joined us after DVCLandbaron stopped being a regular poster. I can say with some certainty that his post was *dripping* with sarcasm. He's been an active proponant of the "bring the magic back" group since my earliest memories of him. His basic position seems to be that the current administration is too concerned with being penny wise & pound foolish...

Sarangel

 

[dcentity2000]

Ooops.

Let this be a lesson to all of us: don't post late at night when your eyes are drooping...



Rich::

 

[DVC-Landbaron]

Thanks Sara!!

I couldn't have said it better myself. I thought the strip joints would be a dead give away.