Orlando Sentinel...
Contender pulls out of Disney race
The move by the eBay executive boosts the candidacy of Robert Iger to succeed Michael Eisner.
By Richard Verrier | Sentinel Staff Writer
Posted March 13, 2005
Walt Disney Co. directors were scrambling late Saturday after one of the top outside contenders to succeed Chief Executive Michael Eisner abruptly withdrew her name from consideration, in part out of frustration when board members failed to give her an answer by a promised deadline.
The move by Meg Whitman, chief executive of eBay Inc., boosts the candidacy of Eisner's second-in-command, President Robert Iger, who with Whitman's departure now appears to be the odds-on favorite.
Board members were meeting via conference call Saturday evening to discuss the state of the job search and were expected to at least discuss whether to offer Iger the job.
It was unclear, however, whether directors were ready to formally anoint him or whether they want to seek out any more potential outside contenders.
Disney officials would not comment.
Iger and Whitman were interviewed by the board Monday, both in the presence of Eisner, sources familiar with the matter said. Whitman was told that she and Iger were the only candidates under consideration, the sources said.
The development shows that Disney may be closer than thought to naming Eisner's successor. Disney's board has said it will name a new CEO by June but has drawn criticism for dragging out the process.
Sources said Whitman had asked for a quick decision, saying she likes her job at eBay and didn't want to be distracted as word leaked out.
But she called the board member -- thought to be Chairman George Mitchell -- late Friday night to pull the plug after directors failed to give her the promised answer.
EBay spokesman Henry Gomez confirmed Whitman's decision, as well as her meeting with the Disney board.
"She simply looked at the opportunity and decided she really wanted to stay at eBay," Gomez said.
Whitman worked at Disney from 1989 until 1992, serving as senior vice president of marketing for the Disney Consumer Products division before leaving for Stride Rite Corp. She became eBay's CEO in March 1998.
Whitman's meeting with Disney directors shows her interest in succeeding Eisner was much stronger than previously thought. Whitman was known to have been on the short list of candidates but repeatedly downplayed her interest, saying she was happy at eBay.
The board had aggressively courted Whitman, however, impressed with her efforts in turning eBay into an Internet powerhouse.
Directors have struggled to entice other top candidates to show interest, sources say. News Corp. President Peter Chernin has declined to be interviewed in part because of concerns that Eisner would be present, sources close to Chernin say. Chernin also wanted assurances, sources said, that Eisner would step down immediately after the new CEO was installed.
Eisner's contract expires in September 2006. The timing of Eisner's departure was another issue directors were expected to discuss Saturday.
Eisner has taken a keen interest in whom his successor will be. He is strongly backing Iger's candidacy, which also has been helped by Disney's improved earnings performance during the past year and a ratings turnaround at the ABC network that Iger oversees.
Last week dissident shareholders Roy E. Disney and Stanley P. Gold said the board is allowing Eisner to make a "mockery" of the search by allowing him to sit in on interviews with the candidates. The company dismissed the allegations as inaccurate.
:fork: :hurl: :brick: 
