A swirl of emotions enveloped Michael Eisner as he navigated his first day as the newly minted leader of Walt Disney Company. Nervous and somewhat clueless about his whereabouts within the Disney headquarters, he found solace in Walt's former office, bolstered by the company of his new ally - Frank Wells.
Eisner had little to no knowledge of Disney culture, nor was he versed in Disney films. Nevertheless, the clutches of inexperience didn't deter him. Determined to rescue the flagging company from its financial and creative rut, he had confidence that his leadership could restore its lost vigor.
In this journey of transformation, the history of Walt Disney and his successful creations like 'Snow White' served as a backstory for Eisner. Equally important was Eisner's upbringing in a wealthy family which did not flaunt its wealth - a trait that would impact his role in the highest echelons of Disney.
In 1996, the grand exit of the then-Disney bigwig Michael Ovitz created quite a commotion. His mammoth settlement deal sent shockwaves through the industry. And then, Disney's CEO, Eisner, raised the bar even higher, stepping into a contract worth a spectacular $770.9 million. This sparked criticism from all corners, leading to larger concerns about executive compensation and the focus on stock options.
During this time, Disney-owned platform, ABC, found itself in a tricky spot, grappling low ratings and management issues. Jamie Tarses, ABC's president, was at the receiving end of the criticism. Despite several attempts, alternative programming struggled to meet expectations, with the exception of 'The Man Show', which became popular on Comedy Central.
ABC's executive, Michael Davies saw a ray of hope in a British game show he felt could change the fortune of ABC. He went to the extent of making promises unauthorized to secure the rights to the show, 'Who Wants to Be a Millionaire'. To Davies's surprise, Eisner liked the idea and the show did prove to be a hit!
However, the success of the game show was not without consequences. The rising tensions between Davies and his colleague, Jamie Tarses eventually led to Davies' exit from ABC. Around the same time, Eisner published his autobiography, which received a lukewarm response, facing criticism for its editing and lack of insight into Eisner's motivations and career.
Joe Roth's leadership saw the consolidation of Touchstone, Hollywood, and Disney studios under Buena Vista Motion Pictures Group. However, behind the harmonious façade, there were cracks. David Vogel's underhand communications with Michael Eisner and Bruce Willis's surprising role choices added to the complicated dynamics within the team. Even more alarming was Spyglass Entertainment’s secretive acquisition of rights to 'The Sixth Sense', which deeply upset Vogel.
Interestingly, the Hollywood landscape could have looked very different. Michael Eisner rejected Harvey Weinstein’s proposal to turn J.R.R. Tolkien's famous series, 'The Lord of the Rings', into a film, believing it wouldn't translate well. A clear miscalculation, as New Line Cinema took on the project, which turned out to be a monumental success.
As struggles unfolded within the Buena Vista Motion Picture Group, Lloyd Braun was battling his own challenges. Tasked with merging Touchstone and ABC, his tenure was marked by intense rivalries and tensions. His unconventional management style, including proposing a modern-day 'Godfather', clashed dramatically with the existing team and executive culture.
Amidst upper-level reshuffling, including the exit of Burke, the rise of Iger and Bornstein, the invention of brilliant content like 'The Sopranos' continued. By the time Braun joined Disney as the chairman of the Buena Vista Television Group, the landscape was shifting drastically.
Dramatic departures became a norm at Disney; Vogel leaving over conflicts with Roth, and Roth, Schneider, and Litvack all deciding to exit. Perhaps the most dramatic exit was that of Katzenberg. After a tense trial concerning his bonus, Katzenberg received a settlement, revealing a deep-seated animosity with Eisner. Moreover, who can forget Bornstein, who felt betrayed by Eisner's broken promises.
Through it all, there were a few bright spots. 'Who Wants to Be a Millionaire' was a wildly successful show that brought in ratings for ABC. However, financial troubles were looming over Go.com's struggles and the potential merging discussion of Disney and Time Warner. Amidst the turmoil, Eisner nominated Iger as Disney's president, causing more frustration among the ranks.
Moving from the phenomenal premiere of 'Fantasia 2000' in New York spawned global events costing over $1 million each, Disney's journey was quite dramatic. Despite the mixed reception of 'Fantasia 2000', the brand was still able to draw attention to its rich past.
However, Disney's voyage was not void of challenges. The threats posed by AOL and Time Warner's merger had Disney's leadership panicking. The company battled Time Warner for cable access and endured a significant loss with the failure of their Internet venture, Go.com. Such hurdles initiated the end of the Disney's internet hype.
In an attempt to keep moving forward, Disney acquired the Fox Family cable channel in a billion-dollar deal, which faced criticism from ABC executives. The company also faced a considerable blow with the underperformance of the highly anticipated film, 'Pearl Harbor'. Such adverse events were indeed a stain on Disney's leadership and financial performance.
Within the firm's walls, turmoil between executives was on the rise. Highlighting an instance where board member Stanley Gold's dissatisfaction birthed a contentious discussion. Outside the corporate scene, while America badgered under the 9/11 attacks, Disney had to consider the potential threats to Walt Disney World.
The proverbial ship at Disney was anything but steady during this period. Tensions were rising, with CEO Michael Eisner caught in the middle of several disputes over finance and strategy. Notably, he locked horns with Reveta Bowers over Disney's donations to the Center for Early Education, not to mention a disagreement with Roy on the ABC acquisition. It was clear - Eisner's control over the board was beginning to slip.
Meanwhile, inside Disney's cinematic universe, things were equally heated. From investigations into the potential of projects like Gnomeo and Juliet, Fraidy Cat, and Wilbur Robinson, to controversies over Johnny Depp's portrayal in Pirates of the Caribbean, it was a whirlwind of debate and decision making. Amid the tumult, there were successes, with the Lizzie McGuire Movie doing great at the box office, although a sequel soon hit rocky waters due to disagreements.
Over at ABC, a fatal tension was brewing between CEO Michael Eisner and president Lloyd Braun. The catalyst for this was an episode of acclaimed series '8 Simple Rules', which, to Braun's bewildering, Eisner condemned as too somber. This, coupled with ABC's loss of a reality show to NBC, set a fiery stage for a to-the-point dinner confrontation. Luckily, ABC's CEO Susan Lyne managed to broker peace, reaffirming the need for effective collaboration.
2003 brought a fervor to the Disney boardroom when Roy Disney was told he wouldn't return to the board. The news shattered Roy, who felt highly betrayed by the sudden decision. Michael Eisner, shocked by the unexpected intensity of Roy's reaction, swiftly disclosed his concerns about the subject.
The principal players including Eisner and his PR executive, Zenia Mucha, began to carefully handle the situation, wary of estranging Roy any further.
Despite the widespread apprehension, the nomination and governance committee stood unyielding to their stance of ousting Roy from the board. Despite holding influence, Eisner refrained from stepping in. In the midst of intense boardroom politics, Roy found himself seeking counsel from his advisors, grappling with the remaining courses of action open to him.
Earning sympathy from a multitude of family members, including Diane Disney Miller, Roy opted to leave the board on his own terms, resigning rather than facing the prospect of being pushed publically off the board. This led to an array of mixed reaction from the Disney board and executive team deeply affecting the internal environment of the company.
Amid the ongoing drama, telecom giant Comcast perceived a chance to harness advantage, with prospects of a major collaboration on the horizon. Despite their disinterest in Disney’s theme parks, Comcast saw value in the company’s film library, cable channels, and ESPN assets. Eventually, faced with internal and external hurdles, their offer didn’t take off, leading to a severe 12% stock drop in just two days.
With Disney's CEO, Michael Eisner, in the hot seat, discontent brews among shareholders and fans alike. The cited concerns range from the decline of theme parks to deteriorating relations with Pixar. Shareholders like Tracy Lunquist and Ian Mitchell, attending a meeting led by the Save Disney group, voiced frustrations over Eisner's leadership and the perceived lack of shareholder contribution to vital company decisions.
Scott Ross and Nathan Lee, passionate Disney theme park enthusiasts, echoed the call for a change in leadership. Attending the same meeting, they argued a noticeable decline in Disney's offerings, suggesting corporate profits were prioritized over creating memorable experiences for visitors.
A shining beacon in the crowds, Roy Disney, joined by Stanley Gold, made a compelling case for Eisner's removal and an overhauling of the company's operations. His stirring speeches and defend of Disney's values galvanized the attendees and highlighted the need for a well-planned successor to Eisner, initiating discussions on future leadership and company sustainability.
The disgruntled CEO, Eisner, planned on stepping down once a successor was found. Though his departure might appear as a victory for critics, it was apparent more work lay ahead. Eisner's criticisms of aspects within the company - an ad for the show 'Lost', for example - and his subsequent revelations about underlying discontent with certain executives, give a glimpse into the challenges that might await the new CEO.
Despite his resignation, Eisner expressed a wish to remain part of Disney's creative process. This, coupled with the ensuing discussions about new, invigorating leadership, offers valuable insights for companies and leaders facing similar situations. The Disney experience emphasizes the importance of effective leadership, transparency, and the balancing act between profitability and consumer satisfaction.
DisneyWar unfolds the riveting power struggles and corporate warfare at the Walt Disney Company during the 90s. At the heart of the narrative are Michael Eisner, the new CEO, and Jeffrey Katzenberg, the freshly appointed chairman of the Walt Disney Studio. Their mission? Breathing new life into Disney. Yet their journey wasn't smooth, laced with continuous disagreements over creative ideas, financial issues, and overarching business strategies.
The conflict extended into Disney's animation department. Katzenberg led a drive to modernize the division, facing stiff opposition from traditional executives. Regardless, his efforts paid off, resulting in iconic animated films such as The Little Mermaid and Beauty and the Beast.
Disney's business ventures, such as the expansion of Disneyland and the introduction of Tokyo Disneyland, were also chronicled. As was their entry into new markets like video and merchandise. Not all decisions were applauded, however—specifically the closure of the animation department due to cost concerns, a move wildly disputed.
Bringing in a new era, the formation of Disney's computer animation subsidiary, Pixar, proved to be a significant pivot. Recognizing the potential of this groundbreaking technology, it served as a launchpad for globally successful films like Toy Story, hailing the resurgence of Disney animation.
Engrossed in the pages of DisneyWar, the reader witnesses intimate tales of strained relationships, intense power struggles, and cutthroat corporate culture, offering a window into what transpired behind the scenes of this entertainment titan.
Under the diligent and ambitious leadership of Michael Eisner as Disney CEO, the struggling film division saw an impressive revival. Eisner ingeniously pursued budget-friendly talent, resulting in the resurgence of Richard Dreyfuss and Bette Midler's careers. Consequent to his strategy, the first prominent release under new management, 'Down and Out in Beverly Hills', broke the mold and achieved box office success.
Aside from his innovative approach to film, Eisner's enthusiasm for architecture saw the acclaimed architect Michael Graves win a competition to design Disney Buildings, adding further depth to the brand's identity. Art and business converged beautifully under Eisner's watch.
Not one to shy away from challenging pursuits, Eisner spearheaded plans for the Euro Disney theme park. Despite internal debates on the theme park's location, Eisner's determination shone through. He opted for France over Spain, announcing plans for Euro Disney in December 1985, marking a new era of growth for Disney.
Our story revolves around the mounting tensions between Michael Eisner and Jeffrey Katzenberg, two top-notch executives working for Disney. The trigger? A glaring wage discrepancy, with Eisner's spectacular compensation dwarfing Katzenberg's non-existent bonus. Katzenberg, feeling undervalued despite his substantial contributions to Disney's success, aired his grievances to the man he hoped would succeed, Frank Wells.
Amid the growing distrust, Katzenberg found himself locked in intense negotiations, eyeing a better deal that included a sizeable share of the profits. The crux of the issue? Eisner suspected Katzenberg's close pal David Geffen stoking the fire, thus deepening his resentment.
On the flip side, a creative revolution began blossoming at Disney led by Howard Ashman. His project, initially shrouded in uncertainty, yielded 'The Little Mermaid,' securing the prosperity of animation at Disney. Yet, even this triumph couldn't dilute the souring relations between Eisner and Katzenberg.
Theirs was a relationship strained further by a leaked memo from Katzenberg, outlining company issues and suggested fixes. Despite a moment of relief found in the success of 'Beauty and the Beast,' the tension remained unabated.
The turning point? Disney's bold move to create the Broadway musical version of their acclaimed film, 'Beauty and the Beast.' Pumping $34 million into the project solely independent streamlined their creative control and catapulted their animation department further to success. The wins didn't stop there as the musical swept the industry, resulting in an astounding $1.4 billion profit in 1992.
Such enormous financial triumph allowed Eisner and Wells to cash in their stock options, making them millions. Credit for the animation success was given to Roy Disney, reigniting the magic that Disney so symbolizes.
During the 1990s, Disney felt a turmoil unraveled by its undertakings, specifically the Euro Disney project. Key decision makers like CEO Michael Eisner and President Frank Wells faced hindrances in steering operations and tending to personnel affairs. Among these was the overwhelming sum spent on constructing Euro Disney, coupled with lackluster attendee count, leading to huge corporation debts. Of noteworthy importance was the creative-controversial decision to plank the theme park’s castle in pink stone instead of traditional, and cheaper, fiberglass.
These difficult episodes were accompanied by leadership feuds. The relationship between Eisner and his colleague, former Disney executive Jeffrey Katzenberg, soured over time, with Eisner going so far as to consider a replacement in the form of Joe Roth. Additionally, there was intrigue when phones were tapped to discern secretive plans, increasing tension within the already strained environment. Nevertheless, despite these internal differences, the executives managed to negotiate a deal leading to a reduction in Euro Disney's fiscal burden, ultimately paving a way to keep the venture afloat.
Upon Frank Wells' unexpected passing, Disney found itself in a predicament. Michael Eisner, the sitting CEO, stepped into the limelight, leaving Jeffrey Katzenberg dangling in anticipation. The coveted presidential seat at Disney, instead of going to Katzenberg, was snatched up by Eisner himself.
Their relationship turned from chilly to frosty as creative disagreements poured gasoline on their simmering feud. Katzenberg's ambitions were met with criticism, his integrity questioned, and his future at Disney hanging in a precarious balance.
Amidst this power struggle, Katzenberg felt overlooked and underappreciated, particularly as he missed out on credit for the box office hit movies 'Beauty and the Beast' and 'The Lion King'. This bitter battle between two titans was beginning to take center stage in the media's eye, shedding light on the dark side of Disney's castle.
Business tycoon Michael Eisner is known to make calculated moves. First, an intriguing rapport took form when Eisner made acquaintances with Senator George Mitchell, intriguingly prospects of him joining Disney's board were discussed, a strategic move indeed.
Following, Michael Ovitz managed to catch Eisner's attention. Recruitment discussion with Ovitz whose profile stood out advanced, albeit concerns about the magnanimity of his ego was discussed with Jane. Alternatives were also scouted, Joe Roth was considered as a fitting replacement for Jeffrey Katzenberg.
Life presented challenges when Eisner had a health fright and had to face an open-heart surgery. His recovery journey saw exploration of stress control techniques introducing yoga and meditation in his life.
Post recovery, Eisner's acumen sported itself again with a reorganization plan. He let Katzenberg go, positioning himself at the helm of all divisions. Meanwhile, Katzenberg chased for his termination bonus.
The course of action resulted in a heated clash over the bonus between Eisner and Katzenberg, onerously damaging their relationship. The news about Katzenberg's exit got featured in The New Yorker, cranking up the existing tension.
Katzenberg called it a wrap with Disney, made public appearances at film premieres, and officially disassociated on October 1, 1994.
Disney's eighth war kicks off with a significant acquisition, the prominent broadcast network, ABC. This merger, a strategic move by Eisner intended to shift the narrative from negative publicity stirred up by Katzenberg, however, wasn't as smooth as Eisner had anticipated. A proposed deal for creative control of NBC with GE was abandoned due to Sid Bass's disapproval.
Disagreements also arose over Disney's America, a Virginian theme park project, which faced opposition over concerns of historical preservation and ultimately got shelved. Simultaneously, the inception of DreamWorks SKG by Spielberg, Katzenberg, and Geffen posed a renewed competitive threat to Disney.
Despite strong speculations and relentless negotiations, the appointment of Michael Ovitz as Disney's president turned out to be complicated. With some reservations about Ovitz's alignment with the company's ethos, Eisner tried to convince board members about the productivity of this decision. Consequently, Ovitz, with his effective business acumen and creative contacts, was appointed the de facto COO.
This partnership, however, was far from perfect. The lack of discussion on ethical aspects during the board members dinner and regretted decision by Eisner to hire Ovitz fueled tensions within the company. The narrative underscores Disney's strategic alignments as well as missteps, offering insight into the complexities of big corporate decisions.
Tried, true and tested, Michael Ovitz earned his place in the grandiose world of Disney. Appointed as president, his ascent wasn’t met without resistance. His once-ally, Joe Roth, felt slighted he wasn’t chosen for the role and felt uneasy reporting to Ovitz. The day before the announcement saw existing executives plant their feet firmly, stating their refusal to be under Ovitz's command, leaving Ovitz feeling backstabbed and defenseless despite his decision to stay steadfast.
Despite being the new president, Ovitz found himself in a precarious position. Disney's CFO, Litvack announced that he too would not answer to Ovitz. After trying to bring them around, when their refusals persisted, it was clear that Ovitz was isolated without the support of Eisner, the CEO, who brushed off his concerns, suggesting his departure if compromised.
The nouveau president felt the brunt of his diminished status from day one - his office wasn't even on the same floor as Eisner's. However, true to his deal-making spirit, Ovitz began negotiating deals with talent and executives from other companies, but his efforts remained in vain as Eisner vetoed each one. The status quo remained unchanged, leading Ovitz to question his importance within the company.
Beyond the cracks in the executive suite, a simmering tension had been building between Eisner, who began micromanaging the ABC television network, and Iger, who felt undermined. Ovitz stepped in, convincing Iger to remain, despite Eisner's cold reception to giving gifts. Similarly, Ovitz also managed to persuade key animators against defecting to rival DreamWorks, and resolved a walking-off-the-set dispute with actor Tim Allen.
A pending litigation concerning Katzenberg’s contract posed potential image risks, leading Ovitz to intervene. Eisner, however, initially rejected the idea of a settlement. Ovitz persisted, managing to convince Eisner to renegotiate. Eventually, a settlement of $90 million was agreed upon, a reasonable conclusion deemed beneficial for Disney by Ovitz, who kept both Eisner and Litvack updated at each step of the ordeal.
During his time as CEO, Michael Eisner led Disney to remarkable heights; churning out animated hits, fostering brand growth, and realizing great financial success. However, a dip in the company's performance post-1995 marked the start of Disney's decline.
Eisner's missteps ranged from excessive expenditure on Euro Disney and ill-conceived internet ventures to the misguided purchase of Fox Family cable network. His managerial struggles saliently included failing to prepare a successor and overseeing strained business relationships.
As Eisner's rein neared its end, shareholding activists and Roy Disney himself expressed strong opposition. Disney's board then found itself grappling with their responsibility towards shareholders and the implications of Eisner's underestimation of the Disney name.
The Walt Disney Company has seen various influential individuals pass through its doors, classically starting off with founder Walt Disney himself. Throughout generations, this impressive list spans from family members to business executives, each playing a pivotal role in shaping the iconic company as it stands today.
This compelling journey includes the presidency of Michael Eisner and Frank Wells, the catalytic creativity of John Lasseter, and ABC Entertainment's dynamic duo, Jamie Tarses and Stu Bloomberg. From boardroom to animation studio, every corner of Disney's empire has been graced by pioneers in their respective fields.
Disney's widespread influence doesn't stop within its own walls, reaching affiliated companies like Pixar and DreamWorks SKG. Names such as Steve Jobs and Jeffrey Katzenberg emerge as key figures, illustrating the interconnected web of Disney's colossal entertainment empire.
Disney's drive to broaden its entertainment territory is shown by the strategic acquisitions of corporations such as ABC, DreamWorks, and Fox Family. This monumental expansion played a significant role in the diversification of Disney's portfolio.
Eisner, known for his distinctive leadership style, sparked conflicts within the organization. His management, marked by impulsive hiring and extravagant gift-giving, amplified internal tensions and fostered a negative corporate culture,
Unveiling the internal turbulence of Disney was the move by Roy E Disney. His resignation and the consequential Save Disney campaign emphasized the internal dissatisfaction towards Eisner's leadership, showcasing the power struggle within Disney and the paramount role of shareholders in steering its course.
In the early 2000s, all was not well in the world of Disney. Central to this drama was Roy E. Disney, Walt Disney’s nephew and a major company shareholder. Roy found himself deeply bothered with the company's then CEO, Michael Eisner, his leadership style, and its dire implications for the company.
Roy’s relationship with Eisner had turned sour, possibly because of Eisner's perceived incompetence. Eisner's reign seemed to be doing more harm than good, leading to a significant decline in the company's financial performance and its creativity. This strained relationship had gotten to the point where Roy had started to avoid any interactions with Eisner.
As a direct bearer of Walt Disney’s legacy, Roy felt an added responsibility towards the company. But the dwindling trust in his colleague and the constant politics seem to be pulling him away. He was even told that he wouldn’t be re-elected to the board, deepening feelings of betrayal and deception he already had for Eisner.
Despite this corporate turmoil, the charm and appeal of Disney’s characters remained intact. This was exemplified in the experience of the author who got a chance to portray Goofy for a day. This heartwarming episode showcasing children's reactions to the characters was a reminder of the importance of maintaining the magical illusion synonymous with Disney.
Diving into Disney's War
Unveiling the Walt Disney Controversy
James B. Stewart's book, 'DisneyWar,' thrives on firsthand reporting, exhaustive interviews, and a comprehensive review of documentation. Stewart dives deep into the inner conflict within Disney, shining a light on key people, including Michael Eisner, Robert Iger, and Roy Disney.
Disney elected to extend a measure of assistance to Stewart, though the company's cooperation was limited, and access to certain areas and materials was restricted.
Eisner: A Detailed Analysis
Despite these limitations, the journey unearths a treasure trove of information on Eisner's actions and thought-processes spanning his Disney career. Featuring a wealth of quotes from legal procedures, the book explores Eisner's influence on Disney in captivating detail.
Reliance on Legal Exhibits
The narrative draws extensively from transcripts and exhibits from legal proceedings. A Delaware lawsuit generously supplied tens of thousands of pages of evidence, providing significant insight into behind-the-scenes activities at Disney.
Anonymous Insights
A host of individuals with direct knowledge of Disney's past two decades cooperated with Stewart on and off the record. The narrative approach helped protect sources' anonymity and included dialogue excerpts from publicly noted conversations.