| The Magic Is Gone
Why are investors so furious with Michael Eisner? It's not just the stock price. The faithful think his singular focus on marketing has cost the company its soul
The drama inside the Philadelphia convention center last Wednesday was worthy of a Disney epic. The audience of 3,000 ... many of them looking like folks dressed for a day in Orlando, Fla. ... sat spellbound as Michael Eisner and his nemesis Roy Disney, nephew of the fabled Walt, launched into a pitched battle of words. The prize: the hearts and minds of the shareholders. Laying out his plans for a Disney turnaround, a hoarse Eisner delivered a speech that only a Wall Street analyst could love. "This is the precise strategy that separates the Disney and ESPN brands from their competitors, allowing us to generate returns that exceed our cost of capital," he said. For emotional effect, Eisner added, "I love this company. The board loves this company. And we are all passionate about the output from this company." But the audience was passionate about Roy Disney. Looking and sounding eerily like his Uncle Walt, seemingly back from the dead after nearly four decades, Roy took the microphone and spoke to the masses. "Branding is something you do to cows," he said. "Branding is what you do when there's nothing original about your product. But there is something original about our products. Or at least there used to be." The audience erupted in cheers. In that instant, the days of King Eisner's unchallenged rule came to an end.
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Posted By: Ian @ 5:18 PM | 
