Chapter 429： Scorched earth

Despite the pressure exerted by Firefly as a Disney shareholder, Disney’s management dragged on for a full week before releasing a Disney financial report to investors.

Because of the sluggish performance for two consecutive years, Michael Eisner did not routinely release quarterly earnings reports, but used a lot of space to review the overall development of Disney since Michael Eisner served as ceo in 1984, and focused on describing The fact that Disney’s market capitalization grew at a rate of 27% per year before 1990, stressing that the failure of several films, such as Cut Throat Island and last year’s Rocket Expert, was only an accident, except for the film department, Disney’s radio and television business, themes. Parks and resorts, as well as consumer product development businesses, are bringing stable profits to the company, so the failure of several movies will not make Disney hurt.

At the end of the report, Michael Eisner’s confident assurances will revolutionize Disney’s film and television department, and the company will soon return to a few years ago, calling on Disney’s shareholders to stand on their side and fight against fireflies. Hostile takeover.

In the face of Michael Eisner's attempt to understate Disney's recent financial situation, Fireflies quickly counterattacked, and in the "New York Post" broke the inside story of the "cut throat" production process .

"... According to the staff of the "cut-throat island" crew, during the film production process, from the script modification to the post-editing, Michael Eisner had to deal with all the details. Even the movie set style, actors The costume design needs to pass Michael's nod to pass.

It was Michael Eisner who arbitrarily intervened in the filming of Cut-Ross Island, which caused director Rennie Haring to fail to play his own directorial concept, which eventually led to the failure of Cut-Throat Island.

Michael Eisner is a micro manager. This kind of management style will strongly limit the enthusiasm of the specific in charge of the staff when the power of the manager wants to expand in the daytime. As a result, the truly talented people will find another job, and the rest will only try to figure out the minds of the superiors. The mediocrity.

There is no doubt that Michael Eisner has made a huge contribution to the company in Disney's first few years, but from the development of Disney in the last two years, Michael Eisner's self-use management style has begun to appear. Disadvantages. In the long run, it will cause immeasurable losses to Disney. ”

After the article was published, Michael Eisner’s agent immediately responded. Claiming that the New York Post is a report on the filth of Michael Eisner, Michael Eisner will sue the slander.

The media is very busy and you come to me, but the real battlefield is not visible to the public.

At the Burbank Firefly Headquarters conference room, Bernie Sanders, head of Morgan Stanley's acquisition team, is discussing with everyone the specific acquisition strategy after the Disney board's rejection of the goodwill acquisition.

"The strange acquisition of Sol Steinberg against Disney in 1984. Disney finally adopted a counter-acquisition strategy of paying 'scurvy ransom', redeeming the value of Sol Steinberg with a huge sum of $300 million. Two billion dollars in stocks. But this time, unlike the past, Disney shareholders apparently have a good-will wait-and-see attitude toward the acquisition of fireflies, so so far, most shareholders only agreed with Michael Eisner’s 'Golden Parachute' agreement because The agreement will not harm their interests. The agreement stipulates that if the acquisition succeeds, if 76 senior executives of Disney are forced to leave the company within two years, the fireflies will need to pay a total compensation of 500 million US dollars."

Eric asked: "If I just want Michael Eisner to leave alone?"

Bernie Sanders looked at the information in his hand and replied: "Michael Eisner first proposed scorched earth tactics. Any one of the 76 executives was dismissed. In retaliation, the other 75 people all voluntarily resigned. Disney’s management turned out to be a ridiculous 'scorched earth'. However, Disney’s management did not agree with Michael Eisner’s proposal and the board did not pass. Therefore, if only Michael Eisner left, the fireflies would have to pay. Michael Eisner has a personal 30 million."

"30 million dollars, so little?" Eric couldn't help but ask, he remembered that Michael Owitz had worked in Disney for more than a year. When forced to leave the position of the president, he took more than 100 million compensation.

Chris, sitting next to Eric, rolled his eyes: "Eric. Michael Eisner's current salary is $750,000, and $30 million is equivalent to Michael Eisner's 40-year salary. You think it's still Less?"

Eric wondered: "What about option incentives and profit dividends?"

"According to Michael Eisner's agreement with Disney in 1984, he worked for Disney for five years before he got option incentives and profit-sharing based on performance. At the beginning of last year, the Disney board officially passed the corresponding plan," Speaking of this, Chris seems to have some gloating: "But then Disney's performance has turned sharply. Last summer, several films caused losses of up to 100 million US dollars. In 1990, Disney's profit in addition to film distribution, in addition to making up for this. In addition to some losses, it is also necessary to pay $150 million in debts and interest due, and eventually Disney can barely break even, and options and dividends will not be discussed."

After Chris finished, Bernie Sanders added: "But I want to remind you that Eric, among the 75 executives other than Michael Eisner, 18 and Michael Eisner The relationship is very close, it can be said that his confidant, the total compensation of these people accounted for 220 million US dollars."

Eric squinted at Michael Lynn, who was sitting in the distance, not too concerned. After completing the acquisition, it would be nice to see the performance of these people, just like the new line left. Most of the executives who have come down now are the backbone of fireflies. No one can go too far with high pay and benefits.

"Those things are considered after the acquisition is completed. I still hope that Disney's current management can be completely preserved. Of course. Mr. Michael Eisner must not be able to stay in the original position."

Bernie Sanders nodded and turned the file in his hand and said: "In addition, Eric, according to our team's assessment, the wholly-owned acquisition plan is not the best choice, if only the Disney control rights are obtained. With the excellent performance of Firefly in the film, most Disney shareholders will be happy to sell some of the stock."

Eric shook his head: "Berney. I once said that I don't want the company to be interfered with by outside investors during the development process. Moreover, I hope that Disney can be privatized. It is easy to integrate with fireflies."

Bernie Sanders only provided Eric with more professional advice in accordance with his professional ethics. See Eric's attitude and no persuasion, and continued to talk about other topics.

After the meeting, Firefly immediately held a press conference. Firefly movie company ceo Michael Lynn made the first official offer to Disney, and acquired the Disney stock premium of 20% on the same day as the firefly publicly acquired the invitation. All stocks.

Also at the Disney headquarters in Burbank, Michael Eisner sits in the executive chair of his office. Looking at the latest quotation materials for the fireflies that the secretary just sent, on the other side, Frank Wells said: "The $4.2 billion, the first quotation is a 20% premium. I don't know how much the firefly's bottom line will be."

Frank Wells looked at Michael Eisner's apparently deep eye sockets and didn't know what to answer. Michael Eisner seemed to be talking to himself and didn't expect to get an answer.

This week, when Firefly released the offer, Michael Eisner visited more than 30 investment institutions and creditors day and night, hoping to get support. But this time the situation is completely opposite to the 1984 shareholders' attitude towards Wall Street tycoon Sol Steinberg's hostile takeover. Many investors are looking forward to this acquisition. So there is no success for Michael Eisner, and some fierce anti-takeover measures can't be implemented.

Although Michael Eisner chose to make vague statements in the financial report, most investors are very clear that Disney’s film business has been declining for two years, even if Disney’s other businesses are still bringing stable profits. But as a film company, developing good movies is always the most important cornerstone of the company. Without enough hot movies to support it, Disneyland and Disney stores around the world will not be able to launch new products. Disney based on Disney content. TV ratings will also decline.

In terms of film and television content, it is very strong, even strong enough to cover up the firefighting inferiority of its channel. Disney, which is perfect with the surrounding channels, can form a perfect complementarity. This complementarity has become a success after Pixar’s Toy Story has been successful. more obvious.

If the firefly's acquisition plan is to choose Disney Holdings rather than a wholly-owned acquisition, perhaps most of the shareholders have already turned to fireflies.

Frank Wells waited for a while and saw that Michael Eisner didn't speak again. He had to take the initiative to say: "This acquisition is impossible to complete in a short time. If the Disney New Year movie is outstanding, it may be able to regain shareholder support. ""

"I am not Eric Williams, where to find..." Michael Eisner said halfway, stopped, not willing to mention Eric's name again, continued: "I went to see it yesterday. Samples of several movies, the "Beauty and the Beast" and the remake of Elizabeth Taylor's "New Father-in-law" are all good, but Robert Benton's "Yongdan Fengyun" quality is not satisfactory, this movie It cost $48 million, which is the sum of the cost of the first two films, but everyone who has seen it feels that this movie is worse than "cutting the throat". I wonder if it will be changed to the summer file next year."

"It's better to change the file. You can't let this movie affect this thing again," Frank Wells said, suddenly thinking about something, saying: "I remember that "Yongdan Fengyun" invited Nicole. Kidman starred in the heroine and she refused."

"Eric Williams, who is it?"

"Yes, if you realize this early, maybe we should be more cautious about the project of "Yongdan Fengyun"."

"Maybe it's just an accident," Michael Eisner waved irritably: "Don't say him anymore."

The two were talking, the phone on the desk rang, Michael Eisner picked up the receiver, and the opposite secretary said: "Mr. Eisner, I just got a call and the other said that he is Summer. Ray. Shi Dong, do you need me to come in?"

"Somer. Redstone, Viacom's Summer." said Michael Eisner, Frank Wells heard the name and raised his ears.

The opposite secretary gave a definitive answer, Michael Eisner said: "Come in."

After that, Michael Eisner looked at Frank Wells and pressed the hands-free button on the landline so that Frank Wells could hear the conversation between the two.

There was a voice in the landline that was somewhat old but full of anger.

......

In the villa of the Sharpe Manor in Malibu, Eric sat on the lobby sofa and watched the Disney film being produced and forthcoming in the hands of the film. Frank Wells could think of the importance of the New Year’s file to Disney, Eric I also thought about this, he is considering how to attack several movies at the end of Disney.

In the film being produced, the peak of the 2d animation in memory, "The Lion King" has not appeared yet, but another "Aladdin" has been established and is being produced.

In addition, in the upcoming movie at the end of the year, Eric saw two more familiar movies, "The Gallbladder" and "Beauty and the Beast". Eric’s most impressive impression of "Yongdan Fengyun" is Nicole's face is full of naked shots. As for the plot, there is nothing to say. A ambition to imitate the "Godfather" and "The Past of the United States" results in a slap in the face, no highlights.

Eric puts more attention on the cartoon "Beauty and the Beast". The original "Beauty and the Beast" is the first animated film in Oscar history to be nominated for the best film, although the data is displayed in the hand. The cartoon's premiere was only over 900, but Eric did not dare to take it lightly.

If "Little Ghosts" is still made by fireflies, it is a good way to attack this movie with "Beauty and the Beast" at the same time. Fox has now started the production of "Little Ghosts 3", but has not announced the schedule. According to the previous two schedules, "Little Devil 3" may still be placed on Thanksgiving Day, the same as "Beauty and the Beast". But who knows if Fox will change his mind, maybe you can find a time to test it.

Eric is considering putting Kim Kerry’s "Dumb and Agua" in the Thanksgiving season. Nicole is wrapped in a short bath towel, swaying with two white long legs and bare feet. The bathroom came out.

Seeing Eric staring at himself, Nicole, who was wiping her hair with a towel, asked, "What are you looking at?"

"leg!"

Nicole glanced at Eric, and came over to sit down beside him, curiously looking at the information in Eric's hands. She knew that what Eric looked at outside the study room was usually not confidential information, so there was no such thing. What scruples.

Eric reached out and pointed out in the information: "Do you know "Yongdan Fengyun"?"

"Well, I received a film about this script, and I can work with Dustin Hoffman and Bruce Willis at the same time, but there are some naked shots, and I communicated with the director a few times. The other party disagreed. I deleted the shots and I didn't pick them up."

Eric laughed: "Fortunately, you didn't pick up, or else two consecutive films failed, you are not far from the box office poison."

Nicole wondered: "How do you know that this movie is a Disney movie, and it hasn't been released yet."

"You look at its schedule. On November 1st, a movie with a production cost of nearly $50 million was placed in the period of November 1. In addition to the filming, I can't think of a second reason. ”

Nicole agreed with Eric's point of view. Some of them were grateful and joked: "Maybe Disney thinks it can be ignored in the same way as "Small Island"?" (To be continued)