Podcast
Questions and Answers
Why did some observers initially dismiss Roy Disney's concerns about the company?
Why did some observers initially dismiss Roy Disney's concerns about the company?
How was Roy Disney generally perceived within the company, as suggested by the phrase 'Walt's idiot nephew'?
How was Roy Disney generally perceived within the company, as suggested by the phrase 'Walt's idiot nephew'?
What marketing initiative, initially criticized by Roy Disney, ultimately became a successful venture for Disney?
What marketing initiative, initially criticized by Roy Disney, ultimately became a successful venture for Disney?
What inspired Roy Disney and Stan Gold to utilize the Internet to voice their concerns regarding the company's leadership?
What inspired Roy Disney and Stan Gold to utilize the Internet to voice their concerns regarding the company's leadership?
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What was the primary objective of launching the SaveDisney.com website?
What was the primary objective of launching the SaveDisney.com website?
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How did the Disney corporate offices react to the launch of the SaveDisney.com website?
How did the Disney corporate offices react to the launch of the SaveDisney.com website?
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What actions did Disney artists take in response to the SaveDisney.com website?
What actions did Disney artists take in response to the SaveDisney.com website?
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What actions were taken by the Disney Company to prevent communication between its employees and Shamrock Holdings?
What actions were taken by the Disney Company to prevent communication between its employees and Shamrock Holdings?
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Which business segment had the highest total revenue in 2003?
Which business segment had the highest total revenue in 2003?
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What was the operating income for the Filmed Entertainment segment in 1995?
What was the operating income for the Filmed Entertainment segment in 1995?
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In which year did Parks and Resorts segment experience an operating income below $1 billion for the first time?
In which year did Parks and Resorts segment experience an operating income below $1 billion for the first time?
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Which segment showed a revenue decrease from 2002 to 2003?
Which segment showed a revenue decrease from 2002 to 2003?
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What was the total operating income for Walt Disney Company in 2003?
What was the total operating income for Walt Disney Company in 2003?
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Which segment had the highest operating income in 1994?
Which segment had the highest operating income in 1994?
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Which year saw the lowest total revenues among the years presented?
Which year saw the lowest total revenues among the years presented?
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What was the revenue for the Broadcasting segment in 1997?
What was the revenue for the Broadcasting segment in 1997?
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What is the primary concern expressed by the Disney employees and fans regarding the company?
What is the primary concern expressed by the Disney employees and fans regarding the company?
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What type of support did Gold mention receiving from Disney supporters?
What type of support did Gold mention receiving from Disney supporters?
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What was a common theme in the letters written to Roy Disney?
What was a common theme in the letters written to Roy Disney?
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How did one supporter describe the negative impact of Michael Eisner on the company?
How did one supporter describe the negative impact of Michael Eisner on the company?
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What was the primary action taken by Gold and Disney in response to the issues raised?
What was the primary action taken by Gold and Disney in response to the issues raised?
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What was a significant method of participation mentioned by a shareholder in support of the 'Save Disney' campaign?
What was a significant method of participation mentioned by a shareholder in support of the 'Save Disney' campaign?
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How did one letter's writer express their view on the board of directors?
How did one letter's writer express their view on the board of directors?
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What was one consequence of Eisner's actions as described in the supporters' letters?
What was one consequence of Eisner's actions as described in the supporters' letters?
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What was Disney's net income for the first quarter of 2004?
What was Disney's net income for the first quarter of 2004?
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Which Disney business segment showed the largest increase in revenue in the first quarter of 2004?
Which Disney business segment showed the largest increase in revenue in the first quarter of 2004?
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What trend did Disney's CEO, Michael Eisner, note regarding the company's performance?
What trend did Disney's CEO, Michael Eisner, note regarding the company's performance?
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What was the revenue increase percentage for the consumer products segment in the first quarter of 2004?
What was the revenue increase percentage for the consumer products segment in the first quarter of 2004?
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Which two films contributed significantly to the studio revenues in 2004?
Which two films contributed significantly to the studio revenues in 2004?
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What was the increase in attendance at Disney parks from 1984 to 1987?
What was the increase in attendance at Disney parks from 1984 to 1987?
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What new theme park did Disney build during Eisner's tenure?
What new theme park did Disney build during Eisner's tenure?
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Which of the following attractions was added in 1987?
Which of the following attractions was added in 1987?
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By 1990, how many Disney Stores were there in the U.S.?
By 1990, how many Disney Stores were there in the U.S.?
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What was Disney's annual cash flow during the time of Eisner's leadership?
What was Disney's annual cash flow during the time of Eisner's leadership?
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What was the stock price increase percentage during Eisner's first ten years as CEO?
What was the stock price increase percentage during Eisner's first ten years as CEO?
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In what year did Disney spend over $280 million upgrading the parks?
In what year did Disney spend over $280 million upgrading the parks?
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What was the operating margin of Disney parks at the end of Eisner's initial tenure?
What was the operating margin of Disney parks at the end of Eisner's initial tenure?
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What was the main reason given for Roy Disney not being put up for reelection?
What was the main reason given for Roy Disney not being put up for reelection?
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What did Gold claim happened to Bowers?
What did Gold claim happened to Bowers?
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What concern did some press commentators have regarding corporate governance changes?
What concern did some press commentators have regarding corporate governance changes?
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What action did Roy Disney ultimately take in response to his situation?
What action did Roy Disney ultimately take in response to his situation?
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How did Eisner allegedly use corporate governance in relation to Van de Kamp?
How did Eisner allegedly use corporate governance in relation to Van de Kamp?
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What justification did Eisner provide for Gold's exclusion from the compensation committee?
What justification did Eisner provide for Gold's exclusion from the compensation committee?
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What was the board's policy regarding director age limits?
What was the board's policy regarding director age limits?
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What was a consequence of Eisner's powerful personality as noted in the content?
What was a consequence of Eisner's powerful personality as noted in the content?
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Flashcards
Admission Price Increase
Admission Price Increase
Disney raised admission prices by $5 in the 1980s.
New Attractions
New Attractions
Captain EO and Star Tours were added to Disney parks in 1987.
Attendance Growth
Attendance Growth
Disney's park attendance rose from 31 million in 1984 to 36 million in 1987.
Operating Margins Increase
Operating Margins Increase
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Annual Cash Flow
Annual Cash Flow
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Television Advertising
Television Advertising
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Eisner's Tenure Impact
Eisner's Tenure Impact
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Shareholder Value
Shareholder Value
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Corporate Governance
Corporate Governance
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Eisner's Influence
Eisner's Influence
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Conflict of Interest
Conflict of Interest
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Age Restriction Policy
Age Restriction Policy
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Roy Disney's Resignation
Roy Disney's Resignation
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Sarbanes-Oxley Legislation
Sarbanes-Oxley Legislation
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Pressure from Execs
Pressure from Execs
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Board Members' Independence
Board Members' Independence
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Roy Disney
Roy Disney
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Eisner
Eisner
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Age restriction
Age restriction
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SaveDisney.com
SaveDisney.com
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Howard Dean
Howard Dean
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Marketing the Princess Line
Marketing the Princess Line
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Total paranoia
Total paranoia
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Anti-Eisner cartoons
Anti-Eisner cartoons
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Disney Q1 2004 Net Income
Disney Q1 2004 Net Income
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Quarterly Revenue 2004
Quarterly Revenue 2004
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Theme Parks Revenue Increase
Theme Parks Revenue Increase
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Studio Revenue Surge
Studio Revenue Surge
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Eisner's Earnings Expectation
Eisner's Earnings Expectation
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Save Disney Campaign
Save Disney Campaign
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Disney Magic
Disney Magic
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Shareholder Voice
Shareholder Voice
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Board of Directors Responsibility
Board of Directors Responsibility
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Michael Eisner
Michael Eisner
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Health Benefits Cuts
Health Benefits Cuts
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Corporate Greed
Corporate Greed
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Shareholders Withholding Support
Shareholders Withholding Support
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Walt Disney Segment Revenues
Walt Disney Segment Revenues
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Media Networks Revenue 2003
Media Networks Revenue 2003
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Parks and Resorts Revenue Trend
Parks and Resorts Revenue Trend
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Filmed Entertainment Growth
Filmed Entertainment Growth
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Total Revenues Expansion
Total Revenues Expansion
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Total Operating Income 2003
Total Operating Income 2003
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Consumer Products Revenue 1993
Consumer Products Revenue 1993
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Operating Income Variability
Operating Income Variability
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Study Notes
Saving Disney
- In March 2004, Walt Disney Company (WDC) annual shareholder meeting, shareholders publicly expressed immense distrust in CEO Michael D. Eisner
- Shareholders criticized Eisner's leadership, citing declining financial performance (net income had fallen for five consecutive years) and perceived lack of board independence
- Two directors, Roy E. Disney and Stanley P. Gold, resigned in protest against Eisner and other directors, urging shareholders to withhold votes, as a tactic for change
- Comcast made a $48 billion unsolicited bid for Disney in February 2004, citing poor management as a reason
- Several major U.S. pension funds, including California, Florida, New York, and Ohio, withheld votes from Eisner
- At the shareholder meeting, an unprecedented 43% of outstanding shares were withheld from Eisner, despite his guaranteed reelection
- Eisner and board members were re-elected, though this signaled a major loss of confidence in WDC's current management
The Walt Disney Company
- Founded in 1923, initially a small cartoon studio.
- Became a global media and entertainment giant with successful theme parks (Disneyland, Walt Disney World), animated films (Mickey Mouse, Snow White), movie production studios, and ESPN
- Faced internal power struggles after Walt Disney's death, focusing on maintaining the legacy
- Eisner succeeded Miller as CEO in 1984, implementing strategic changes to revive the company's financial health and revitalized animation
- Company saw significant financial success, but also challenges regarding poor performance, high executive compensation, and governance concerns, and management conflict led to significant departures, and poor financial performance in retail divisions and parks
Tragedy Strikes
- 1994: Frank Wells, an influential Disney executive, died in a helicopter crash
- 1994: Jeff Katzenberg, a prominent executive, resigned
- Late 1990s: Disney acquisitions (Capital Cities/ABC) were questioned with respect to financial performance
Save Disney Campaign
- Activism from shareholders like Gold and Roy Disney, who criticized Eisner and board practices
- Created saveDisney.com, a website for shareholder dissent and advocacy
- Tour to meet with institutional shareholders to garner support
- Eisner and other board members were re-elected despite shareholder opposition
The Comcast Bid
- Comcast's bid for Disney reinforced the perception of internal strife and poor management
- Disney board rejected Comcast's offer despite the pressure of institutional investors
Shareholder Meeting (Philadelphia)
- In early 2004, the shareholder meeting raised concerns about weak performance, poor corporate governance, and potential succession planning
- Multiple institutional investors withheld support from Eisner, voicing concerns
- The 43% withhold vote reflected significant shareholder opposition, despite Eisner's reelection
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Description
Test your knowledge on the pivotal moments and key figures in Disney's corporate history, focusing on Roy Disney's influence and the company's marketing strategies. Explore the internal reactions to critical initiatives like SaveDisney.com and understand the broader impact on the Disney brand overall.