Abstract

In the mid-90s, Michael Eisner, CEO of Walt Disney, faces myriad problems. Jeffrey Katzenberg, the former head of Disney Studios, has filed a lawsuit against Disney claiming the company owed him profits he helped generate during his tenure from 1984 to 1994. Disney Studios' performance has been erratic while competition from Warner Bro., Paramount Pictures and others has increased. Meanwhile, Eisner faces problems working with the newly appointed president of Disney, Michael Ovitz. Ovitz, who joins Disney in 1995, leaves the company after just 16 months, with a severance package of more than $100 million. Under pressure to generate new growth opportunities, Eisner has decided to transform Disney from a movie studio into a full-fledged media powerhouse. He has acquired the television network station ABC and formed the Buena Vista Internet Group to consolidate the company's Internet activities. Eisner has also attempted to expand the theme park business by setting up Euro Disney and Disney Japan. This part of the case covers events from 1995 to 1999.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Michael Eisner, Walt Disney, Jeffrey Katzenberg, lawsuit against Disney, Disney Studios', Warner Bro., Paramount Pictures, Michael Ovitz., Euro Disney, Disney Japan and Television network station ABC