Anti-Eisner campaign is hurting Disney, not helping

[PeterAlt]

Look at what's happening and tell me this anti-Eisner campaign isn't already hurting the Walt Disney Co. itself. The campaign has investors asking if there is anything fundamentally wrong with the company. This is keeping the stock price from going up, and even bringing it down. This weakness in the stock is making the company volunerable for a take-over attempt.

With 43% of the shares witholding their votes for Eisner, the Board was forced to react by removing Eisner as its chairman. This leaves Eisner out of the loop in deciding against any take-over attempts. Like him or hate him, Eisner would have done everything in his power to prevent another company of gobbling it up. Now the Disney Company is open for attack.

We can only hope that it'll be a friendly company, such as Pixar to gobble it. But, unfortunately, Comcast will most likely try at it again. The new Chairman of the Board is responsible to the shareholders to make sure the company acts in their interests. A sweet deal with Comcast would be in the shareholders' interest and the new Disney Chairman will feel obligated to agree to it. Eisner wouldn't agree to it because of his conflicting interest in the comany as CEO, which Comcast would remove him from.

Let's hope I'm wrong. But if I'm right, let's hope it's a company like Pixar, not Comcast. But if its Comcast. let's pray that they don't destroy our favorite company!

 

[wdwmagic]

Originally posted by PeterAlt

This leaves Eisner out of the loop in deciding against any take-over attempts. Like him or hate him, Eisner would have done everything in his power to prevent another company of gobbling it up. Now the Disney Company is open for attack.

I wouldnt worry about Eisner being out of the loop! Remember all roads lead back to Eisner, it is alleged the board do what he says, regardless of what his official title is. Mitchell maybe Eisner's boss on paper, but in practise Eisner is still the top man. His losing the Chairman role will make no difference what-so-ever.

 

[MouseRight]

Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by wdwmagic
I wouldnt worry about Eisner being out of the loop! Remember all roads lead back to Eisner, it is alleged the board do what he says, regardless of what his official title is. Mitchell maybe Eisner's boss on paper, but in practise Eisner is still the top man. His losing the Chairman role will make no difference what-so-ever.

Steve, I think you were correct up to yesterday around 3 PM. The Board now has no choice but be independent from Eisner. Last night's action is only an attempt to give them more time to take more agreesive actions. Wall Street will keep the heat on. Roy will keep the heat on. The fans will keep the heat on. Stay tuned. Within short order they will announce a retirement date for Eisner, start a search, and take any other action appropriate to protect themselves and the shareholders. This may include offensive actions like buying another company, getting rid of assets (read this as ABC), etc. Even though they want to keep Disney independent, it will also include, selling the Company to anyone who makes a good, but not great, offer.

Peter has a valid point. Roy (as well as Eisner, the Board, and Comcast) has contributed to the perception that Disney is weak and the predators are on the attack. Roy should back off and offer an olive branch so that Disney is not lost.

It's a shame that a bunch of grown men couldn't do what we ask kindergartners to do - Get Along.

 

[wdwmagic]

Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by MouseRight
Steve, I think you were correct up to yesterday around 3 PM. The Board now has no choice but be independent from Eisner. Last night's action is only an attempt to give them more time to take more agreesive actions.

The current board seems incapable of being independent. Their decision to put Mitchell in there as chairman, someone who got a massive no vote, seems to defy belief. Then to declare total support for Eisner in the wake of such a big no vote, seems even more unbelievable. It doesnt seem to me like stalling for time before getting aggressive. It seems like a board of puppets who dare not do anything.

I hope you are right and things change for the better soon

 

[tigsmom]

Re: Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by wdwmagic
The current board seems incapable of being independent. Their decision to put Mitchell in there as chairman, someone who got a massive no vote, seems to defy belief. Then to declare total support for Eisner in the wake of such a big no vote, seems even more unbelievable. It doesnt seem to me like stalling for time before getting aggressive. It seems like a board of puppets who dare not do anything.

I wholeheartedly agree.

 

[DMC-12]

Re: Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by wdwmagic
It seems like a board of puppets who dare not do anything.

I dont like puppets... Like Howdee Doody... they scrare the beejubus out of me. :lol: :lookaroun

 

[MouseRight]

Re: Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by wdwmagic
The current board seems incapable of being independent. Their decision to put Mitchell in there as chairman, someone who got a massive no vote, seems to defy belief. Then to declare total support for Eisner in the wake of such a big no vote, seems even more unbelievable. It doesnt seem to me like stalling for time before getting aggressive. It seems like a board of puppets who dare not do anything.

I hope you are right and things change for the better soon

Business people just don't move that fast and to do so would be just as irresponsible as not. Up until the last week, these people didn't believe this vote was gonna happen. They have made public statements supporting Eisner. To vote him out this quickly could subject them to additional grief if doing so makes the situation become more unstable - eg., Comcast uses it to push harder for the merger. The vote itself was unprecented, which means that they are going down a road that no one else has. Even Steve Case's resignation from AOL/TW took a while after the vote and it was around 20%. They need to get the right advice, spend some time anlayzing this, and developing a plan which will not destabilize the Company even more. I know, they should have done this before today and according to reports they have been since the begining of the year.

Roy, Stan, & Wall Street understand this, even though their public posture is to claim disbelief and anger. It's all part of the game. "Cut off the head and the body dies" - it just takes a little longer for the body to do so. It will play out over the next few months. In the mean time, the company has found renewed focus, is interviewing for a successor, and is making the right changes, even though you guys don't want to admit it.

 

[TURKEY]

Re: Re: Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by MouseRight
Business people just don't move that fast and to do so would be just as irresponsible as not. Up until the last week, these people didn't believe this vote was gonna happen. They have made public statements supporting Eisner. To vote him out this quickly could subject them to additional grief if doing so makes the situation become more unstable - eg., Comcast uses it to push harder for the merger. The vote itself was unprecented, which means that they are going down a road that no one else has. Even Steve Case's resignation from AOL/TW took a while after the vote and it was around 20%. They need to get the right advice, spend some time anlayzing this, and developing a plan which will not destabilize the Company even more. I know, they should have done this before today and according to reports they have been since the begining of the year.

Roy, Stan, & Wall Street understand this, even though their public posture is to claim disbelief and anger. It's all part of the game. "Cut off the head and the body dies" - it just takes a little longer for the body to do so. It will play out over the next few months. In the mean time, the company has found renewed focus, is interviewing for a successor, and is making the right changes, even though you guys don't want to admit it.

How do you explain putting Mitchell, someone that isn't independant as the new Chairman of the Board?

 

[cherrynegra]

Anyone who believes this Board to be independent in any shape or form is naive at best and delusional at worst. This Board is not independent which is evident in the fact that they maintained Eisner as CEO and then appointed Mitchell as Chairman. Not even INTERIM-CHAIRMAN. No, they reappointed the two people who got the highest numbers of votes withheld. As long as Eisner remains on the Board, he will continue to play puppetmaster pulling on the strings.

I understand that they cannot simply remove these two gentlemen without looking for replacements. Fine. But then come out and lay a timeline for when that will happen. Let's see substantive action taken and not empty meaningless action. Otherwise, they are going to drag this mess into next year and it will only worsen.

 

[Pat X]

Ok...so you want the board to be "independent," well then to do WHAT exactly? Do you even know what you are asking for? All I read are people complaining, but offering no real suggestions on what you want them to do.

Who should replace Eisner, Mitchel, etc? Do you want them to merge with Comast? That would certainly be seen as an "independent" move apart from Michael's position of keeping the company a single entity.

 

[PeterAlt]

Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by MouseRight
Steve, I think you were correct up to yesterday around 3 PM. The Board now has no choice but be independent from Eisner. Last night's action is only an attempt to give them more time to take more agreesive actions. Wall Street will keep the heat on. Roy will keep the heat on. The fans will keep the heat on. Stay tuned. Within short order they will announce a retirement date for Eisner, start a search, and take any other action appropriate to protect themselves and the shareholders. This may include offensive actions like buying another company, getting rid of assets (read this as ABC), etc. Even though they want to keep Disney independent, it will also include, selling the Company to anyone who makes a good, but not great, offer.

Peter has a valid point. Roy (as well as Eisner, the Board, and Comcast) has contributed to the perception that Disney is weak and the predators are on the attack. Roy should back off and offer an olive branch so that Disney is not lost.

It's a shame that a bunch of grown men couldn't do what we ask kindergartners to do - Get Along.

Exactly! I couldn't have said it better myself!!

 

[cherrynegra]

Originally posted by Pat X

Who should replace Eisner, Mitchel, etc? Do you want them to merge with Comast? That would certainly be seen as an "independent" move apart from Michael's position of keeping the company a single entity.

Where in my post did I even mention Comcast? If you're for keeping Eisner, fine. But don't be deceived into believing that he wouldn't sell Disney down the Kali river if the right offer came around. He himself on Larry King, and I watched that interview, welcomed any offer that he thought was serious. Whether that offer comes from Comcast or any other bidder. All this sky-is-falling rhetoric about Comcast buying Disney at this time is premature. Their offer is laughably ridiculous. Is there a possibility that someone else might make a bid for the company? Yes. Is there a possiblity that Eisner would welcome an offer if it is "serious? Yes.

 

[lebernadin]

Originally posted by cherrynegra
But don't be deceived into believing that he wouldn't sell Disney down the Kali river if the right offer came around. He himself on Larry King, and I watched that interview, welcomed any offer that he thought was serious.

Try looking at that interview again, but this time objectively. You're taking liberty with what he said and portraying it as if he's eager for someone to make another offer. He doesn't want the company bought as much as everyone on here whining about him. But as chairman and CEO(which he was on Larry King) its his duty, as well as the entire board's to seriously consider ANY offer because its a publicly traded company and the shareholders come before their subjective ideas about any offer.

 

[lebernadin]

Originally posted by cherrynegra
But then come out and lay a timeline for when that will happen. Let's see substantive action taken and not empty meaningless action. Otherwise, they are going to drag this mess into next year and it will only worsen.

This isn't Monopoly or The Apprentice. The shareholders meeting happened yesterday. The real world doesn't operate at the pace you're expecting.

 

[Woody13]

Originally posted by cherrynegra
As long as Eisner remains on the Board, he will continue to play puppetmaster pulling on the strings.

The current members of The Walt Disney Company's board of directors are as follows:

John Bryson
John Chen
Judith Estrin
Robert Iger
Aylwin Lewis
Monica Lozano
Robert Matschullat
George Mitchell (COB)
Leo O'Donovan, S.J.
Gary Wilson

Eisner is no longer a member as of 3/3/2004. He is the company CEO.

 

[cherrynegra]

Originally posted by lebernadin
Try looking at that interview again, but this time objectively. You're taking liberty with what he said and portraying it as if he's eager for someone to make another offer. He doesn't want the company bought as much as everyone on here whining about him. But as chairman and CEO(which he was on Larry King) its his duty, as well as the entire board's to seriously consider ANY offer because its a publicly traded company and the shareholders come before their subjective ideas about any offer.

And I would agree with you. I just wanted the previous poster to realize that Eisner would consider any offer deemed "serious" because of their fiduciary responsiblities to their shareholders. Whether that offer comes from Comcast or any other bidder.

 

[cherrynegra]

Originally posted by lebernadin
This isn't Monopoly or The Apprentice. The shareholders meeting happened yesterday. The real world doesn't operate at the pace you're expecting.

Yes, the shareholders meeting happened yesterday. Fully aware of that. However, I did not set a time for the current Board to lay down a timeline of succession, if that is indeed what they desire to do. I know that they will have to sit down and seriously look at what the shareholders meant by their 43% vote and what steps should be taken to assure those shareholders they heard them and what their response will be.

 

[MouseRight]

Re: Re: Re: Re: Re: Re: Anti-Eisner campaign is hurting Disney, not helping

Originally posted by turkey leg boy
How do you explain putting Mitchell, someone that isn't independant as the new Chairman of the Board?

First of all, I am not sure I agree that Mitchell isn't indpendent in accordance with the SEC rules. I do however, agree that he is close to Eisner. But I don't care. Just like Roy was close to Eisner at one time. Things change. I myself have had to fire and laid off people I felt very close to because of the situation - I had no choice. I have even recommended laying myself off because it was short term financially good for the company. By Eisner accepting the loss of the Chairman title and by Mitchell taking it, they both and the board have acknowledged that change is necessary and must continue. My explantion is clear. This Board needs time and should take time to decide on a course of action. Anything less than that can be more destructive than the current situation. Everyone is running around saying "The Sky is Falling" The Sky is Falling". But, you know what, it isn't. The Company is still alive. It is turning around. The pressures being brought on it by Roy, Wall St, and others will force more change - no doubt in my mind. The dwarves are not falling off of the Disney Team Building in Anaheim. Things will change because that change has already begun and like a chain reaction it will continue - just not as fast as you folks are salivating over. I am a stockholder with most of one of my 401k tied up in Disney stock - I can't change it out at this time due to the plan rules and losses. I am a DVC member with a sizeable investment in WDW. I am putting my money where my mouth is. I am patient, especially if it means that Disney stays independent.

By the way, no Board or managment team of any Public Company can reject a fair offer of merger without some significant reason. Anything less will result in a shareholder lawsuit. Based on what I have seen of Eisner's ability to take the attacks he took yesterday and everything else I know about him, I don't agree that he will sell out that easy. He may have to if he can't come up with another defense but he will not sellout as you suggest. He needs to leave the Company as he had originally built it - independent and strong and the best in teh business. Anythig less than that will be a failure.

 

[cherrynegra]

Originally posted by Woody13
The current members of The Walt Disney Company's board of directors are as follows:

John Bryson
John Chen
Judith Estrin
Robert Iger
Aylwin Lewis
Monica Lozano
Robert Matschullat
George Mitchell (COB)
Leo O'Donovan, S.J.
Gary Wilson

Eisner is no longer a member as of 3/3/2004. He is the company CEO.

Votes Withheld Tally

John Bryson 22%
John Chen 14%
Judith Estrin 23%
Robert Iger 15%
Aylwin Lewis 13%
Monica Lozano 16%
Robert Matschullat 16%
George Mitchell (COB) 24%
Leo O'Donovan, S.J. 16%
Gary Wilson 15%

Eisner, who is now CEO, 43%. And I still stand by my assertion that this Board will not be independent in thought and action and they will merely be puppets of Eisner.

 

[MouseRight]

Originally posted by Woody13
The current members of The Walt Disney Company's board of directors are as follows:

John Bryson
John Chen
Judith Estrin
Robert Iger
Aylwin Lewis
Monica Lozano
Robert Matschullat
George Mitchell (COB)
Leo O'Donovan, S.J.
Gary Wilson

Eisner is no longer a member as of 3/3/2004. He is the company CEO.

I belive you are incorrect. Eisner is still on the Board. He is just not Chairman anymore. No way Iger woudl be on the baord if Esiner wasn't. There are 11 Board members.