Commentary: Hollywood's odd couple have been at odds for years
NEW YORK (CBS.MW) -- Michael Eisner, the chief executive of the Walt Disney Co., seems to be determined to settle all his accounts.
That's why it should come as no surprise that Variety reported late Wednesday that Disney (DIS: news, chart, profile) appears poised to not renew the contracts of Harvey Weinstein and his brother Bob Weinstein. They are the heads of the Miramax movie company, a Disney subsidiary. See full story.
While the Disney and Miramax arguments have been going on for much of the past year -- enlivening both the business and gossip pages of newspapers in the process -- the timing of a Miramax exit rests solely with Eisner.
He continues to be the company's chief decision-maker, even after relinquishing his title of chairman following the bitter reaction by disgruntled Disney shareholders during the highly publicized annual meeting last March in Philadelphia.
The Disney CEO recently announced his plans to retire in 2006. Eisner appeared at a Goldman Sachs investment conference last week and his visit was notable for his relaxed, self-deprecating remarks.
While other top executives sometimes act as if the weight of the world rests on their shoulders, it was as if Eisner appeared to be completely content with the direction of his company in the twilight of his career.
Tellingly, Eisner has been intent to wrap up Disney's loose ends. First, his top deputy, Disney President Robert Iger, announced in London a few weeks ago that Disney held out little hope of renewing negotiations with the Pixar animation operation.
Now, Disney seems ready to cut loose Miramax. Analysts have suggested that a parting of the ways is now merely a matter of time.
Odd couple
Disney and Miramax were Hollywood's odd couple almost from the beginning of their collaboration.
Miramax, on the wings of such unexpected hits as "Pulp Fiction" in 1994, became the most respected and influential independent film studio. Its success set off a movement in which film makers rushed to bring their visions to the screen without conforming to the whims and bureaucracies of mainstream Hollywood.
Disney, anxious to broaden its appeal and embrace a younger, hipper audience of filmgoers, acquired Miramax about a decade ago. The addition of Miramax was proof that Disney was evolving in ways that its legendary founder Walt Disney would have never dreamed.
Further, the personalities of Eisner and Harvey Weinstein, the acknowledged leader of Miramax, were also as different as the movies that their studios were best known for.
The contrasts between the two companies' visionaries were sharp. Eisner was a creature of Hollywood. Weinstein was based in New York. Except for the rare verbal shot at former Disney executive Jeffrey Katzenberg, Eisner was usually guarded while Weinstein was well known for his outspoken manner.
While Eisner headed a large, multi-layered organization, Weinstein had a facility for accomplishing his goals with a much nimbler company. Weinstein, meanwhile, was also a master at creating hits and beating the odds. For instance, Miramax's "Shakespeare in Love" stunningly walked off with the Best Picture Oscar in 1999 when it defeated Steven Spielberg's World War II epic "Saving Private Ryan."
The Weinsteins' deal is reportedly set to end in 2009, but an option permitted Disney to rework the pact next year.
Problems
The relationship between Disney and Miramax deteriorated severely this year.
According to published reports, Disney wanted to pay Bob and Harvey Weinstein less money and, aggravating them further, rein in the ever-expanding production budgets at Miramax.
After establishing itself as a maker of small-scale and scrappy movies, Miramax gradually enlarged its sights -- and its budgets. The Civil War-era romantic drama "Cold Mountain," starring Nicole Kidman, Oscar winner Renee Zellweger and Jude Law, ended up costing more than $80 million, elevating Miramax into the company of the very studios it had countered for a decade.
Perhaps the final blow to Weinstein's ego occurred earlier this year when the two parties bickered over the fate of Michael Moore's anti-President George W. Bush documentary "Fahrenheit 9/11," which had been partially underwritten by Miramax.
Eisner warned Miramax a year ago that Disney wouldn't be distributing the Moore movie. Critics of Disney charged that it was practicing censorship, but the company shrugged off the allegations.
Moore himself, pleased to be able to receive an unexpected publicity blitz, insisted that Disney preferred not to irk the Republican Party and threaten the tax advantages that Disney enjoys with its theme parks in Florida.
Disney agreed to sell the movie to the Weinstein brothers for some $6 million. The Weinsteins promptly created a distinct company from Miramax and made a deal to distribute "Fahrenheit 9/11" with Lions Gate (LGF: news, chart, profile) and IFC Films.
The split
Disney would be shedding Miramax at a crucial time in its history.
Two decades after Eisner took the reins of Disney, the company has been lambasted by critics for failing to maintain its creative edge. Much of its good publicity resulted from its association with Pixar (PIXR: news, chart, profile), the company which created such blockbusters as the "Toy Story" series.
Miramax also gave Disney ample credibility in a different way. While Miramax's strength didn't lie in producing blockbusters, such movies as "Life Is Beautiful" and the "Kill Bill" series often drew raves from the critics, who lauded the films' rich creativity and quirky, ambitious plot lines.
At the same time, Disney's ABC unit has been reeling in recent years, failing to introduce any hits. This year, such critically acclaimed series as "Lost" and "Desperate Housewives" have helped ABC turn heads, for the first time since "Who Wants to be a Millionaire" five years ago.
It would be the height of irony if Disney's weak link, ABC, returned to prominence with daring programming, just as the company would be losing Miramax. The film company gave the entertainment behemoth its greatest license for creativity in the past decade.
NEW YORK (CBS.MW) -- Michael Eisner, the chief executive of the Walt Disney Co., seems to be determined to settle all his accounts.
That's why it should come as no surprise that Variety reported late Wednesday that Disney (DIS: news, chart, profile) appears poised to not renew the contracts of Harvey Weinstein and his brother Bob Weinstein. They are the heads of the Miramax movie company, a Disney subsidiary. See full story.
While the Disney and Miramax arguments have been going on for much of the past year -- enlivening both the business and gossip pages of newspapers in the process -- the timing of a Miramax exit rests solely with Eisner.
He continues to be the company's chief decision-maker, even after relinquishing his title of chairman following the bitter reaction by disgruntled Disney shareholders during the highly publicized annual meeting last March in Philadelphia.
The Disney CEO recently announced his plans to retire in 2006. Eisner appeared at a Goldman Sachs investment conference last week and his visit was notable for his relaxed, self-deprecating remarks.
While other top executives sometimes act as if the weight of the world rests on their shoulders, it was as if Eisner appeared to be completely content with the direction of his company in the twilight of his career.
Tellingly, Eisner has been intent to wrap up Disney's loose ends. First, his top deputy, Disney President Robert Iger, announced in London a few weeks ago that Disney held out little hope of renewing negotiations with the Pixar animation operation.
Now, Disney seems ready to cut loose Miramax. Analysts have suggested that a parting of the ways is now merely a matter of time.
Odd couple
Disney and Miramax were Hollywood's odd couple almost from the beginning of their collaboration.
Miramax, on the wings of such unexpected hits as "Pulp Fiction" in 1994, became the most respected and influential independent film studio. Its success set off a movement in which film makers rushed to bring their visions to the screen without conforming to the whims and bureaucracies of mainstream Hollywood.
Disney, anxious to broaden its appeal and embrace a younger, hipper audience of filmgoers, acquired Miramax about a decade ago. The addition of Miramax was proof that Disney was evolving in ways that its legendary founder Walt Disney would have never dreamed.
Further, the personalities of Eisner and Harvey Weinstein, the acknowledged leader of Miramax, were also as different as the movies that their studios were best known for.
The contrasts between the two companies' visionaries were sharp. Eisner was a creature of Hollywood. Weinstein was based in New York. Except for the rare verbal shot at former Disney executive Jeffrey Katzenberg, Eisner was usually guarded while Weinstein was well known for his outspoken manner.
While Eisner headed a large, multi-layered organization, Weinstein had a facility for accomplishing his goals with a much nimbler company. Weinstein, meanwhile, was also a master at creating hits and beating the odds. For instance, Miramax's "Shakespeare in Love" stunningly walked off with the Best Picture Oscar in 1999 when it defeated Steven Spielberg's World War II epic "Saving Private Ryan."
The Weinsteins' deal is reportedly set to end in 2009, but an option permitted Disney to rework the pact next year.
Problems
The relationship between Disney and Miramax deteriorated severely this year.
According to published reports, Disney wanted to pay Bob and Harvey Weinstein less money and, aggravating them further, rein in the ever-expanding production budgets at Miramax.
After establishing itself as a maker of small-scale and scrappy movies, Miramax gradually enlarged its sights -- and its budgets. The Civil War-era romantic drama "Cold Mountain," starring Nicole Kidman, Oscar winner Renee Zellweger and Jude Law, ended up costing more than $80 million, elevating Miramax into the company of the very studios it had countered for a decade.
Perhaps the final blow to Weinstein's ego occurred earlier this year when the two parties bickered over the fate of Michael Moore's anti-President George W. Bush documentary "Fahrenheit 9/11," which had been partially underwritten by Miramax.
Eisner warned Miramax a year ago that Disney wouldn't be distributing the Moore movie. Critics of Disney charged that it was practicing censorship, but the company shrugged off the allegations.
Moore himself, pleased to be able to receive an unexpected publicity blitz, insisted that Disney preferred not to irk the Republican Party and threaten the tax advantages that Disney enjoys with its theme parks in Florida.
Disney agreed to sell the movie to the Weinstein brothers for some $6 million. The Weinsteins promptly created a distinct company from Miramax and made a deal to distribute "Fahrenheit 9/11" with Lions Gate (LGF: news, chart, profile) and IFC Films.
The split
Disney would be shedding Miramax at a crucial time in its history.
Two decades after Eisner took the reins of Disney, the company has been lambasted by critics for failing to maintain its creative edge. Much of its good publicity resulted from its association with Pixar (PIXR: news, chart, profile), the company which created such blockbusters as the "Toy Story" series.
Miramax also gave Disney ample credibility in a different way. While Miramax's strength didn't lie in producing blockbusters, such movies as "Life Is Beautiful" and the "Kill Bill" series often drew raves from the critics, who lauded the films' rich creativity and quirky, ambitious plot lines.
At the same time, Disney's ABC unit has been reeling in recent years, failing to introduce any hits. This year, such critically acclaimed series as "Lost" and "Desperate Housewives" have helped ABC turn heads, for the first time since "Who Wants to be a Millionaire" five years ago.
It would be the height of irony if Disney's weak link, ABC, returned to prominence with daring programming, just as the company would be losing Miramax. The film company gave the entertainment behemoth its greatest license for creativity in the past decade.