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The Impact of Michael Eisner at Disney
Aug 29, 2024
Notes on the Lecture: The Michael Eisner Era at Disney
Introduction
1923: Disney Brothers Studio founded by Uncle Walt and father Roy Disney.
Current concern about the direction of the Disney Company.
Call to action for Disney shareholders: vote no on re-elections of Michael Eisner and others.
Michael Eisner's Background
Born: March 7, 1942, in Mount Kisco, New York.
Grew up in a wealthy family and received a degree in English from Denison University in 1964.
Career path:
Started at NBC as a page.
Moved to CBS, then ABC as senior VP of programming.
Became president of Paramount Pictures in 1976, turning the company around with hits like "Grease" and "Raiders of the Lost Ark".
Crisis at Disney in the Early 1980s
Profits declining and morale low after Walt Disney's death in 1966.
Roy E. Disney believed the company had lost its creative focus, becoming too profit-driven.
CEO Ron Miller clashed with Roy E. Disney over creative vs. profit focus.
Eisner's Appointment as CEO
Roy E. Disney sought a new leader, eventually choosing Eisner for his creative vision.
Conducted extensive research on Disney operations before assuming role.
Eisner's Early Initiatives
Focused on revitalizing the animation division.
Invested in new animated films including "The Little Mermaid," "Aladdin," "Beauty and the Beast," and "The Lion King."
Expanded Disney's theme parks:
Developed new parks and improved existing ones.
Launched Disney Cruise Line.
Financial Growth
Disney's market value grew from $2 billion to $222 billion between 1984 and 1992.
Increased customer satisfaction and employee morale.
Tensions and Conflicts
Frank Wells' death in 1994 marked a turning point.
Conflicts arose with Jeffrey Katzenberg over creative differences and compensation.
Katzenberg's resignation led to further instability.
Eisner's Management Style
Autocratic and controlling, leading to alienation of talented executives.
Despite successes, faced criticism for not adapting to new industry challenges.
Major Acquisitions and Challenges
1995: Acquired ABC for $19 billion, but faced scrutiny over network performance.
Euro Disney opened in 1992, burdensome debt and criticism for poor market research.
Tensions with Miramax and Pixar led to various conflicts and setbacks.
Decline and Ouster
By the early 2000s, Roy Disney and shareholders pushed for Eisner's resignation due to declining performance.
2003: Roy Disney resigned from the board, leading to increased pressure on Eisner.
Shareholder revolt and a takeover bid from Comcast prompted Eisner's eventual departure.
Conclusion
Eisner's legacy is mixed: marked by growth and innovation, yet also controversy and leadership struggles.
Ultimately transformed Disney into a major entertainment empire, but left under scrutiny for management style and decisions.
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