Peter Chernin Makes Move for Esiner's Job?

[cherrynegra]

'Easy exit' clause hints at News Corp man's Disney move

Staff and agencies
Friday November 26, 2004

The race to succeed Disney chief Michael Eisner took an intriguing turn yesterday when it emerged that a highranking Murdoch employee has signed a new contract making it easy for him to leave ... but only if he goes to Disney.

Peter Chernin, president of News Corp and already one of the leading candidates to replace Eisner, has signed a new contract, one of the provisions of which has fuelled speculation of a move to Disney.

According to US reports, Chernin's new terms with allow him to leave the company without notice if he becomes head of a stand-alone publicly traded rival.

That would work in the favour of Murdoch's much-admired 63-year-old lieutenant if he gets the nod from the Disney board to replace Eisner. The embattled Disney chief executive has said he will step down in late 2006.

However, Chernin's contract stipulates six months' notice and the consent of Murdoch if Chernin chooses to head up the entertainment division of a rival parent company, such as General Electric's NBC Universal. That is, the contract favours the exact circumstance of Chernin joining Disney, but not a similar post elsewhere.

2004 has been one of the worst years in living memory for Disney, with a series of high profile flops like King Arthur, Around the World in 80 Days and The Alamo, and a messy court case involving former president and super agent Michael Ovitz.

As if that wasn't enough, Disney looks like losing its immensely lucrative distribution contract with Pixar next year, and is also in the middle of contract renewal talks with Miramax chiefs Harvey and Bob Weinstein which may result in the brothers taking their slate of prestigious films and talent relations elsewhere.