Lecture Notes: The Legacy of Michael Eisner at Disney

Introduction

• Founded Disney Brothers Studio in 1923 by Walt's uncle Wald and father Roy.
• Concerns about Disney's current direction and call for shareholder action against re-election of board members including Michael Eisner.

Michael Eisner's Early Life

• Born March 7, 1942, in Mount Kisco, NY.
• Grew up in a wealthy family, attended prestigious schools.
• Graduated from Denison University in 1964 with a degree in English.
• Started career at NBC and moved through several networks, eventually reaching Paramount Pictures.

Rise to Disney Leadership

• Joined Disney in 1984 during a time of crisis (declining profits, low morale).
• Roy E. Disney sought Eisner to refocus on creativity and innovation.
• Eisner researched Disney extensively before taking the helm.

Key Contributions at Disney

• Revitalized Disney's animation division, leading to hits like:
  • The Little Mermaid
  • Aladdin
  • Beauty and the Beast
  • The Lion King
• Oversaw expansion of theme parks:
  • Disney's MGM Studios
  • Disney's Animal Kingdom
  • Tokyo Disneyland
  • Disneyland Paris (formerly Euro Disneyland)
• Diversified revenue streams through acquisitions:
  • Capital Cities/ABC
  • ESPN
  • Miramax Films

Management Style and Collaborations

• Strong partnership with Frank Wells, who was critical for Disney's operations.
• Eisner focused on creativity while Wells handled business operations.
• Criticism of Eisner’s autocratic management style, leading to tensions with other executives, particularly Jeffrey Katzenberg.

Challenges Under Eisner

• Death of Frank Wells in 1994 led to increased scrutiny of Eisner's leadership.
• Criticisms of his control over company direction and decision-making.
  • Katzenberg's departure due to disputes over compensation and management approach.
• Michael Ovitz's brief tenure as president resulted in further management conflicts.

Financial Struggles

• Euro Disney faced significant debt and poor attendance post-opening.
• ABC acquisition raised concerns over network performance and ratings.
• Tensions with Miramax co-founders and declining film quality in the late 90s.

Shareholder Revolt and Departure

• Campaign led by Roy Disney and Stanley Gold to oust Eisner due to declining performance and creativity concerns.
• Shareholder dissatisfaction led to a public campaign for reform, culminating in Eisner's announcement to leave when his contract expired.

Conclusion

• Eisner's era saw both tremendous growth and significant controversy.
• Played a key role in transforming Disney into a media giant.
• Remembered as a transformative yet polarizing figure in entertainment history.