The hot run of Monsters, Inc. couldn't save Michael Eisner from his power crisis.
Disney only had distribution rights for the animated hit, snagging a measly 10% of the profits while Pixar pocketed the lion's share.
It barely moved the needle for their stock price. The real culprit shaking Disney's shares? ABC's downward spiral.
CBS came in swinging with two heavy hitters—Survivor and CSI—and crushed ABC's Who Wants to Be a Millionaire.
The kicker? Both Survivor and CSI's production teams pitched to Disney first!
Michael Eisner shot them down hard, claiming they didn't fit Disney's "values." Now, those shows are Sumner Redstone's aces at Viacom.
Lately, Roy Disney's been firing shots at the board again, slamming ABC for pitting a "filler" like Millionaire against a juggernaut like CSI.
He even told The New York Times, "If Millionaire's the reason ABC lost its top spot with viewers, I'll eat my hat!"
If Millionaire isn't to blame, then it's gotta be human error, right?
On January 7th, Michael Eisner struck back, axing ABC Group president Stu Bloomberg fast. The excuse? His taste in shows was "quirky" and "dark," clashing with Disney's wholesome vibe.
Crisis averted, power secured!
After a string of setbacks—and two botched firings with Jeffrey Katzenberg and Michael Ovitz—Eisner's finally wised up. His style's softened a lot.
He called Stu into his office for a heart-to-heart. First, he thanked him for taking the heat with Millionaire, then assured him the 9-million-USD bonus contract still stood—it'd just shift into a production deal.
A friendly chat did the trick. Stu went back to his office and willingly submitted his resignation to the board.
This smooth firing got Eisner reflecting on his old, sharp-edged, bulldozer ways.
Right now, Disney's getting hammered by CBS in TV and can't even muster a decent movie in theaters…
Change is overdue.
Especially with Disney president and COO Robert Iger stepping up, personally overseeing ABC's operations to breathe some life back into it.
He's floated poaching David Letterman and his Late Show from CBS lately—a move that'd escalate the ABC-CBS war big time!
Michael Eisner greenlit the headhunting plan!
He's ready to go toe-to-toe with Viacom!
This time, Eisner's gotta play it smart, stay humble, and line up more outside allies to take on Viacom's golden streak.
For movies, the first name that popped into his head? Dunn Walker!
"Band of Brothers blows Six Feet Under out of the water. I'm curious—didn't Redstone push you to hand it over to Showtime?"
The two sat aboard Dunn's shiny new Boeing 747, jetting off to New York.
Eisner was headed to check on ABC and field some congressional questions about pirated DVDs; Dunn was off to join the Resident Evil promo blitz.
Eisner's comment had a whiff of gloating—and maybe some stirring-the-pot vibes.
Dunn stayed cool, sipping his red wine. "He brought it up. I said no. Try this—Merlot, 70-year vintage. You don't see it on the market much."
Eisner wasn't into booze or smokes, smirking. "Turned down Redstone? That old geezer's not someone to mess with!"
"Not someone to mess with? Didn't you poke that bear too?"
Dunn shot him an amused look.
They sat across from each other at a round table, looking less like old enemies with a blood feud and more like buddies who go way back.
Eisner's face hardened, his tone icy. "Redstone's gone too far—playing dirty and clean at the same time. Disney's stock's in the gutter, and he's the root of it!"
That cleared things up for Dunn.
This guy's dead set on going all-out against Redstone!
In its past life, Viacom had a brief golden run, but their slugfest with Disney left both bruised and battered.
Disney's brand value tanked, Viacom's stock slumped, and they got carved up.
Eisner lost his throne, and Redstone's media empire faded into history…
As a bystander, Dunn was all for it!
Eisner, Redstone—neither's a saint!
The messier their fight, the better!
Dunn didn't mind fanning the flames, leaning in with a sly grin. "Between you and me, I've got a little secret."
"Oh?"
"Comcast's prez, little Roberts—heh—mentioned he's thinking of teaming up with me to tank Disney's stock."
"What?!"
Eisner's jaw dropped!
At his level, he knew what that could mean—Comcast might be in cahoots with Viacom.
Dunn pressed on. "Comcast scooped up AT&T's cable arm. Cable TV's hit its ceiling—practically a monopoly. They've got the pipes but no content. So… Mr. Eisner, you see where Comcast's headed, right?"
"A hostile takeover of Disney?" Eisner felt a chill, then snorted coldly. "That upstart Comcast thinks they can swallow Disney? Dream on!"
"What if they've got backup?"
Dunn kept stirring, his face all mysterious.
Eisner couldn't fully buy Dunn's word, but Disney and Viacom's rivalry was already out in the open—white-hot.
It'd spread from TV to movies!
Right now in Hollywood, it's not Dunn Pictures squaring off with Disney—it's Paramount!
The only big-budget flick released alongside Monsters, Inc. was Paramount's Domestic Disturbance.
Too bad that dud got obliterated by Monsters, Inc..
"Viacom and Disney—only one's walking away from this!"
Eisner downed a big gulp of wine, his voice resolute.
It was a statement for Dunn too.
Dunn smiled lightly, refilled his glass, and raised his own in a toast. "Honestly, between Viacom and Disney, I'd pick the latter every time!"
Eisner saw that coming, chuckling. "Why's that?"
Dunn said casually, "Viacom's all about New York's business scene. Disney's born and bred Hollywood! Whatever beef we've had before, when outsiders invade, we stand together!"
"Well said—united we stand!"
Eisner, in a rare move, clinked glasses and took another big swig with Dunn.
Dunn grinned. "My girlfriend's been catching some flak lately. I really appreciate Disney Channel's fair and neutral take."
Eisner nodded. "Dunn Pictures hasn't gone after Disney films for six months now. I'm grateful for that."
Dunn laughed heartily, topping off Eisner's glass again.
Eisner waved it off, refusing more. "Dunn, I ran your request by some folks. That batch of cartoons? You can't touch 'em. Unless…"
"Unless what?"
"Unless Disney leads and Dunn Pictures plays second fiddle in a joint project."
Dunn frowned. "Mr. Eisner, that logic's off. Sure, Disney owns the rights, but across Hollywood, who's got the chops to revive that dusty, outdated series? In my hands, those old cartoons are gold. In Disney's, they're just gems gathering dust!"
Eisner shook his head. "That's Disney's foundation—its brand value. You get that, so let's not argue. Selling the rights? No chance. Not even adaptation rights."
Dunn's smile turned a little sly. "Mr. Eisner, you run Disney with an iron fist. You telling me you can't swing a little thing like this? I'd bet it's because your seat's shaky—you don't wanna touch anything sensitive."
Eisner wasn't fazed at being called out, replying coolly, "You should know—if I'm at Disney, you've got a slim shot at those cartoons. If I'm out? You're done for good."
Dunn's lip curled up. "Sounds like a real pickle! Roy Disney's against it, and you're not exactly on board either."
"No, no, you've got it wrong—I'm not against it. My condition's joint development! It's gotta boost Disney's movie biz so I can answer to the board," Eisner countered quickly.
Dunn shrugged grandly. "What's the big deal? Just gotta get Disney's film side back on its feet, right?"
Eisner's eyes lit up a bit.
Dunn went on, "For the cartoon adaptations, we can team up—but Dunn Pictures takes the lead! Er, no—Rose Pictures, actually. You know, my feminist-focused outfit. As for Disney's movie biz… you've heard of the hot Chronicles of Narnia, right?"
"What're you getting at?"
"Narnia's a Dunn Pictures-Warner Bros. co-production, 50-50 split. It's killing it at the box office, neck-and-neck with Lord of the Rings. But the Warner partnership… sure, it's even shares, but they're calling the shots. Big company privilege, you know? I'm sick of it."
Eisner's face suddenly sparked with excitement.
This was a major project!
The Chronicles of Narnia: The Lion, the Witch and the Wardrobe had been out two months and already pulled in over 250 million USD in North America! Tied with The Fellowship of the Ring, it's the hottest thing going!
A series this big drives insane merchandise sales. Even a 50% stake means hundreds of millions.
Dunn's really willing to let it go?
Sure enough, Dunn waved a hand, bold as brass. "If we're partnering up, I'll show some real sincerity. I'm ready to hand over the rights to the next few Narnia films to Disney!"