Disney News Roundup
Posted: Fri Jun 11, 2004 10:34 am
From IMDB
Plush Toy Maker Parts Company with Disney
There has been another parting-of-the-way at Disney -- this time, it's the company's plush toy maker, Applause. Toy company Chairman and CEO Bob Solomon told today's Los Angeles Daily News,"I'm sad and torn by a piece of me passing. ... But I think for the time being, it's the best thing for both." He declined to state what had led to the breakup, saying only that while he loved the Disney characters, "it's another thing to love the way we're doing business." The announcement stunned analysts. "Companies trip over themselves to land a deal with Disney," David Joyce of brokerage firm Guzman & Co. told the newspaper, speculating that Disney's demands "pushed the margins down to uneconomic levels" for Applause. He also suspected that Disney might have insisted on "micromanaging" the toy company in order to protect the Disney characters.
From IMDB
California Pension Firm Places Disney on "Focus List"
CalPERS, the country's biggest U.S. public pension fund, placed the Walt Disney Co., along with three other companies, on its "focus list" because of "continuing issues with corporate governance." CalPERS holds about 10 million Disney shares. The fund has accused Disney's board of directors of being a rubber stamp for management and has supported efforts to oust CEO Michael Eisner. CalPERS on Wednesday called for greater independence by the board and demanded that it approve a succession plan for Eisner and other top officers.
From Reuters
Roy Disney asks court to release Eisner pay detail
LOS ANGELES, June 9 (Reuters) - Walt Disney Co. DIS.N dissident shareholder Roy Disney on Wednesday asked a Delaware judge to let him disclose board documents about the pay of Chief Executive Michael Eisner, the latest move by the former director in his campaign to oust Eisner.
Roy Disney and Stanley Gold filed a lawsuit earlier this year to as part of their bid to determine the extent of any involvement by Eisner's personal attorney, Irwin Russell, in compensation and bonus decisions for fiscal 2002 and 2003.
The company gave them some documents on the condition that they be kept confidential. Now Gold and Disney want to share some of the papers and are in court to get approval for that disclosure.
Disney, a former company director and nephew of founder Walt Disney, and Gold argue that the board did not exercise sufficient oversight in setting Eisner's pay, while the board has said it hired an outside compensation expert and has tied pay to performance.
David Robbins, an attorney for Roy Disney, said he expected Delaware vice-chancellor Stephen Lamb to make a decision in about a month.
Eisner's pay package rose 20 percent in in 2003 to $7.3 million. His salary was unchanged at $1 million, but his stock bonus rose to $6.25 million from $5 million in 2002.
The company, in a statement, said that Gold and Disney had voted for the company's confidentiality policy that they now opposed.
A spokesman for the two said there was now a larger need for transparency and interest in corporate governance than when the policy was instituted.
Both sides saw the case as a test of corporate governance.
"We obviously thought this was information shareholders should have, and we brought it to court," Robbins said. "It is the ability of shareholders to test claims with respect to transparency and good governance that the company has made."
Disney responded in its statement: "At stake is preserving the confidentiality of private board deliberations to facilitate open internal discussions that are critical to the interests of all stockholders."
From Reuters
RPT-Euro Disney signs MOA on debt restructuring
PARIS, June 9 (Reuters) - Euro Disney EDLP.PA has reached a memorandum of understanding with its lenders on a financial restructuring that is expected to contain new debt and equity financing, the French theme park operator said on Wednesday.
The MOA needed the approval of all lenders by July 31, Euro Disney said in a statement. It did not give any financial details.
Last month Euro Disney obtained extra time from its lenders and main shareholder the Walt Disney Co DIS.N to finalise financial restructuring negotiations. The deadline of the first stage of the extension was set for June 8.
Euro Disney said at the time it would fail to meet all of its debt obligations if no agreement or memorandum of understanding with its lenders was reached by June 30.
The European outpost of the Disney empire has suffered from a slowdown in tourism that coincided with the costly opening of a second park which has failed to draw the hoped-for-crowds.
From Reuters
Pixar's Jobs 'flexible' on new Disney deal
LOS ANGELES, June 7 (Reuters) - Pixar Animation Studios Inc. PIXR.O Chief Executive Steve Jobs on Monday left open the door for a new film distribution deal with Walt Disney Co. DIS.N , following an overture from Disney last week, but said no such talks had begun between the two sides.
Asked in an interview on CNBC whether he would rethink a deal with Disney if there were management changes, Jobs said he was open to the possibility. Jobs cut off talks with Disney in January and has clashed with its chief executive, Michael Eisner, in the past.
"We try to stay flexible, we're willing to rethink anything. But so far our phone hasn't rung with any new thoughts from anybody," Jobs said.
Disney and Pixar have produced a string of computer animated hits, from "Toy Story" to "Finding Nemo," and their last collaboration, "Cars," is set for release next year.
"In 2006 we will likely be distributing films with another partner. We're in the process of getting to know the other studios in Hollywood and they're being very gracious," Jobs said.
Eisner said on June 2 that he thought there was still a chance for a new Pixar deal, although he also said there were no talks between the companies.
From Reuters
Children's Place May sales up, looking at Disney stores
NEW YORK, June 3 (Reuters) - Children's Place Retail Stores Inc. PLCE.O on Thursday posted a same-store sales increase of 9 percent, and said it was in talks with Walt Disney Co DIS.N to buy the Disney Store retail chain.
The Secaucus, New Jersey-based retailer confirmed it was in talks to acquire and operate the Disney Store retail chain in the United States and Canada under a long-term license arrangement.
The companies have not entered into a formal deal or letter of intent, Children's Place said.
For the four week period ended May 29, the company posted total sales of $57.2 million, up 18 percent.
Plush Toy Maker Parts Company with Disney
There has been another parting-of-the-way at Disney -- this time, it's the company's plush toy maker, Applause. Toy company Chairman and CEO Bob Solomon told today's Los Angeles Daily News,"I'm sad and torn by a piece of me passing. ... But I think for the time being, it's the best thing for both." He declined to state what had led to the breakup, saying only that while he loved the Disney characters, "it's another thing to love the way we're doing business." The announcement stunned analysts. "Companies trip over themselves to land a deal with Disney," David Joyce of brokerage firm Guzman & Co. told the newspaper, speculating that Disney's demands "pushed the margins down to uneconomic levels" for Applause. He also suspected that Disney might have insisted on "micromanaging" the toy company in order to protect the Disney characters.
From IMDB
California Pension Firm Places Disney on "Focus List"
CalPERS, the country's biggest U.S. public pension fund, placed the Walt Disney Co., along with three other companies, on its "focus list" because of "continuing issues with corporate governance." CalPERS holds about 10 million Disney shares. The fund has accused Disney's board of directors of being a rubber stamp for management and has supported efforts to oust CEO Michael Eisner. CalPERS on Wednesday called for greater independence by the board and demanded that it approve a succession plan for Eisner and other top officers.
From Reuters
Roy Disney asks court to release Eisner pay detail
LOS ANGELES, June 9 (Reuters) - Walt Disney Co. DIS.N dissident shareholder Roy Disney on Wednesday asked a Delaware judge to let him disclose board documents about the pay of Chief Executive Michael Eisner, the latest move by the former director in his campaign to oust Eisner.
Roy Disney and Stanley Gold filed a lawsuit earlier this year to as part of their bid to determine the extent of any involvement by Eisner's personal attorney, Irwin Russell, in compensation and bonus decisions for fiscal 2002 and 2003.
The company gave them some documents on the condition that they be kept confidential. Now Gold and Disney want to share some of the papers and are in court to get approval for that disclosure.
Disney, a former company director and nephew of founder Walt Disney, and Gold argue that the board did not exercise sufficient oversight in setting Eisner's pay, while the board has said it hired an outside compensation expert and has tied pay to performance.
David Robbins, an attorney for Roy Disney, said he expected Delaware vice-chancellor Stephen Lamb to make a decision in about a month.
Eisner's pay package rose 20 percent in in 2003 to $7.3 million. His salary was unchanged at $1 million, but his stock bonus rose to $6.25 million from $5 million in 2002.
The company, in a statement, said that Gold and Disney had voted for the company's confidentiality policy that they now opposed.
A spokesman for the two said there was now a larger need for transparency and interest in corporate governance than when the policy was instituted.
Both sides saw the case as a test of corporate governance.
"We obviously thought this was information shareholders should have, and we brought it to court," Robbins said. "It is the ability of shareholders to test claims with respect to transparency and good governance that the company has made."
Disney responded in its statement: "At stake is preserving the confidentiality of private board deliberations to facilitate open internal discussions that are critical to the interests of all stockholders."
From Reuters
RPT-Euro Disney signs MOA on debt restructuring
PARIS, June 9 (Reuters) - Euro Disney EDLP.PA has reached a memorandum of understanding with its lenders on a financial restructuring that is expected to contain new debt and equity financing, the French theme park operator said on Wednesday.
The MOA needed the approval of all lenders by July 31, Euro Disney said in a statement. It did not give any financial details.
Last month Euro Disney obtained extra time from its lenders and main shareholder the Walt Disney Co DIS.N to finalise financial restructuring negotiations. The deadline of the first stage of the extension was set for June 8.
Euro Disney said at the time it would fail to meet all of its debt obligations if no agreement or memorandum of understanding with its lenders was reached by June 30.
The European outpost of the Disney empire has suffered from a slowdown in tourism that coincided with the costly opening of a second park which has failed to draw the hoped-for-crowds.
From Reuters
Pixar's Jobs 'flexible' on new Disney deal
LOS ANGELES, June 7 (Reuters) - Pixar Animation Studios Inc. PIXR.O Chief Executive Steve Jobs on Monday left open the door for a new film distribution deal with Walt Disney Co. DIS.N , following an overture from Disney last week, but said no such talks had begun between the two sides.
Asked in an interview on CNBC whether he would rethink a deal with Disney if there were management changes, Jobs said he was open to the possibility. Jobs cut off talks with Disney in January and has clashed with its chief executive, Michael Eisner, in the past.
"We try to stay flexible, we're willing to rethink anything. But so far our phone hasn't rung with any new thoughts from anybody," Jobs said.
Disney and Pixar have produced a string of computer animated hits, from "Toy Story" to "Finding Nemo," and their last collaboration, "Cars," is set for release next year.
"In 2006 we will likely be distributing films with another partner. We're in the process of getting to know the other studios in Hollywood and they're being very gracious," Jobs said.
Eisner said on June 2 that he thought there was still a chance for a new Pixar deal, although he also said there were no talks between the companies.
From Reuters
Children's Place May sales up, looking at Disney stores
NEW YORK, June 3 (Reuters) - Children's Place Retail Stores Inc. PLCE.O on Thursday posted a same-store sales increase of 9 percent, and said it was in talks with Walt Disney Co DIS.N to buy the Disney Store retail chain.
The Secaucus, New Jersey-based retailer confirmed it was in talks to acquire and operate the Disney Store retail chain in the United States and Canada under a long-term license arrangement.
The companies have not entered into a formal deal or letter of intent, Children's Place said.
For the four week period ended May 29, the company posted total sales of $57.2 million, up 18 percent.