Walt Disney Co. (NYSE: DIS) held its annual shareholder meeting last Thursday, and a couple interesting things were discussed, according to a Hollywood Reporter piece.
Apparently, a mutual fund manager challenged management regarding a controversial miniseries called The Path to 9/11, claiming that Disney has decided not to exploit the project on home video because of political considerations. I vaguely remember this miniseries, but it seems to have been critical of President Bill Clinton, and since his wife is running right now, well, maybe the decision was based on not interfering with whatever momentum she may (or may not) have. The mutual fund guy said CEO Bob Iger has been a donor of Clinton (as one can imagine, Iger denies that politics are involved here).
I am really not sure if this guy has a legitimate point or not, or what his bias is, but let me say this -- if the miniseries did really cost $40 million, then it should be out on DVD, period. Shareholders should be angry about that. Content is king, new distribution platforms are the kingdom, and if this miniseries is controversial, then it might bring in a little bit of cash to the Mouse's coffers. Now, I obviously realize that not releasing the miniseries isn't going to break Disney -- but I do want the company to aggressively exploit any and all content, especially one that cost $40 million to generate.
Let me get to the second thing that was interesting -- Mr. Iger's compensation. Some feel that his compensation is excessive; others -- such as the Disney board -- think it is not. My take? I think it is excessive. Yes, he's been a good CEO, but you know something, Disney' stock still hasn't returned to the $40+ level that it used to be many, many years ago. I've owned Disney since 1998, around the time of its last split. And here's a question I'd like to ask Iger -- in all seriousness, if you were paid $5 million a year to run Disney -- heck, I'd do it for less -- would you quit? I wonder what his answer would be. Again, Iger is doing reasonably well in the competitive world of media, which includes companies like Time Warner (NYSE: TWX), Viacom (NYSE: VIA), CBS (NYSE: CBS), General Electric's (NYSE: GE) NBC Universal, and News Corp. (NYSE: NWS). But if anyone has the right to be greedy, it's capitalists like me who actually put up the capital.
Steven Mallas owns shares of Disney and General Electric; positions can change at any time.
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Reader Comments (Page 1 of 1)
3-09-2008 @ 7:54AM
Michael Schneider said...
I agree with you about the Road to 911 film. The film did have inaccuracies but it also had more factual content than many Hollywood films and that of course is the problem- it's mixed up like some of their bios are with fact and truth and it is not easy for a viewer to sort things out in terms of the details. I'd much rather see them put in a critical response from someone who is against it than to waste the project entirely. I am concerned that Bill Clinton had been involved in the delays and the editing of this in the 1st place. Disney did scuttle the Michael Moore 911 film which was loaded with inaccuracy but Lions Gate picked it up and we see Michael Moore films all over the place-- entertaining yes but politically biased and lacking judgment.
On the plus side for Robert Iger, he has done a lot to invigorate Disney and Warren Buffett (see synopsis of his recent interview in the Billionaire Watch section, yellow label at top of page at http://www.Barrelomoney.com) recently said he is one of the CEOs who has done the most for shareholders.
3-10-2008 @ 7:34PM
Tom Borelli said...
Disney did make money on Fahrenheit 911 - according to Slate they hid it well:
http://www.slate.com/id/2117923/
The LA Times discussed the Path to 9/11 in the following article:
http://www.latimes.com/entertainment/news/homeentertainment/la-et-path5sep05,0,2302280.story?coll=la-home-entertainment
3-11-2008 @ 5:20AM
Royce said...
Shareholder meeting in New Mexico? What's next, Alaska?
Dear John E. Pepper Jr. - Chairman of the Board The Walt Disney Company; and Fred H. Langhammer; Steve Jobs; Roy E. Disney; Susan Arnold; John E. Bryson; Judith L. Estrin; John S. Chen; Robert A. Iger; Aylwin B. Lewis; Monica C. Lozano; Orin C. Smith; Robert W. Matschullat; shareholders/investors; Johnny Depp; Alice Davis, X. Atencio, & to whom it may concern:
What I am presenting is a very serious and important issue. On my website www.disneylawsuit.com is documented proof, key details pinpointing the Walt Disney Company’s deliberate fraud and certain corruption, which includes this company having intentionally concocted facts and lies with which to financially profit, escape all accountability and purposely alter the court, it’s shareholders and the public’s perception of the truth.
It is a documented fact that the Walt Disney Company officially demanded that I “admit” that their concocted facts and lies were true, and then by mixing in additional misdirection, Disney firmly threaten that if I didn’t dismiss my case by May 18, 2007, Disney would get the court to dismiss my case and hit me with enormous fees, sanctions and expenses.
For convenience, on my website, there are many archived photo set comparisons and materials, all streamlined for quick reference. As I have experienced and have documented, instead of attempting to resolve a serious issue regarding the Pirates of the Caribbean movie with any logical or fair approach, or even by way of a jury to review any of the evidence, the Walt Disney Company has intentionally orchestrated, supervised and engaged in deliberate corrupt acts, especially involving a book entitled “Pirates of the Caribbean: From the Magic Kingdom to the Movies” book, written by Disney employee Jason Surrell and signed off by Martin “Marty” Sklar, with which to avoid all accountability and ultimately rewarded itself solely based it’s own design of misdirection, concocted facts and lies.
Even though the Walt Disney Company acts as if it were a private company with hypocritical standards, corrupt practices and evident criminal acts with which to steal, control, threaten and coverup for their own profit, this publicly traded company is still obligated for truth and is forever accountable for all of it’s actions.
www.disneylawsuit.com