Chapter 439: This is the trend

One week after Warner Bros. released Batman Forever and Disney premiered their animated feature Pocahontas, Toy Story, which had been out for ten days, grossed an impressive $64 million.

At the Midtown Club Hotel in Manhattan, Arthur was in the sauna with Ted Turner. "Is TBS getting sold to Time Warner?" Arthur asked.

Ted chuckled, "What, are you interested in TBS too?"

Arthur was noncommittal. "TBS has the most cable channel licenses, and CNN is the highest-rated news channel. Just those two factors are quite tempting."

He reminded Ted that many of MGM's classic films, especially those before 1948, were still under TBS's license. Turner had retained a significant number of these rights after his purchase.

Ted Turner appeared a bit helpless, "TBS merging with Galaxy sounds good, but I haven't managed the company much in recent years. I've been mostly semi-retired."

"They've been in talks with Time Warner about their shares. Does Galaxy really stand a chance against one of the shareholders?" Arthur replied, shaking his head. "From what John Malone says, Time Warner is determined to get CNN."

Ted cautioned, "Arthur, think about the big three networks. Mergers between TV and film groups are inevitable; diversification is the trend for media giants."

"Don't worry, I get it," Arthur said as he dried his face with a towel and left the sauna.

Neither Galaxy nor NBC could take a bite out of Capital Cities/ABC. CBS had only Disney and Westinghouse competing in the field. Arthur wasn't underestimating Westinghouse; the company had fallen behind General Electric since their struggles in the '80s. Competing with Disney? Arthur believed Galaxy couldn't lose to Westinghouse because Galaxy was dominating content production in Hollywood.

...

After showering and returning to the bedroom, Arthur felt the warm body of Winona Ryder snuggle up to him. Her film, My Best Friend's Wedding, was about to hit theaters, and she would soon head back to LA for the premiere.

"Still awake?" Arthur asked, smiling as he held Winona.

"Yeah, I can't believe you bought stock in Gucci during your Europe trip. You're interested in luxury goods now?" she teased.

"Just making money, that's all. I was more interested in that new creative director, Tom Ford. A top designer can really breathe new life into a brand. Just look at how Karl Lagerfeld revived Chanel," Arthur explained.

Winona smiled, "Have you been keeping up with Toy Story? The North American box office has hit $64 million."

"Disney's Pocahontas opened to only $26 million, far less than Toy Story!" Arthur remarked.

He certainly knew about the performance of Toy Story, but hadn't paid much attention to Pocahontas.

"Disney just lost Jeffrey Katzenberg, and now they're facing Pixar. I wonder how the old Roy Disney will handle this," Arthur said, genuinely pleased.

Without Pixar's boost, Disney's animation would struggle to enter the 3D realm. As Pixar continued to release popular films, Disney's shareholders were bound to get worried!

"Wow, you're really something," Winona said, sending him a peck before shedding her nightgown.

He rolled over to embrace her...

...

Meanwhile, at Disney's animation office in Burbank, Peter Schneider reported directly to Roy Disney and Michael Eisner. Although Peter's immediate boss was actually president Michael Ovitz.

"Is the 3D gimmick of Toy Story really that popular?" Michael Eisner's expression was less than pleased. Pocahontas had suffered a $3 million shortfall compared to Toy Story's strong opening. The rave reviews for Toy Story overshadowed even the high praise for Pocahontas.

Roy Disney frowned, "Toy Story appeals to adults too; it targets more than just the children's market."

The animation success came from absorbing various artistic elements, showcasing a blend of style, movement, language, color, and sound. Innovative ideas, extraordinary imagination, and deep artistic expression defined a beloved animation.

Peter Schneider felt a deep loss; he had always been Jeffrey Katzenberg's right-hand man. "Animation needs creativity, and Pixar might not guarantee annual releases," Peter pointed out.

"Toy Story was crafted over several years; a brilliant idea isn't easily produced!" he added.

Roy nodded, reassuring Michael that Toy Story's success was irreversible. But he wondered if Pixar could keep delivering successful works. Still, nobody could anticipate that Arthur would eventually prompt Pixar to produce sequels, launching a series of animated films!

Roy couldn't help but sigh, feeling regret for losing Katzenberg. Jeffrey recognized the future of 3D animation before it became mainstream and had prepared to partner with Pixar to help Disney.

However, strong-willed Jeffrey had been standoffish in negotiations, settling for a mere 15% of box office takings for Pixar without any other benefits. All rights to distribution and branding rested with Disney.

The outcome was evident: Galaxy swooped in to acquire Pixar.

"Alright, you all can leave now," Michael Eisner was busy engaging with CBS's board. Disney's animation wouldn't collapse due to one new 3D film. However, he needed to resolve one matter quickly -- a legal letter from Jeffrey Katzenberg had been sent to Disney. He didn't want to face lawsuits over severance pay from former executives and needed to push Michael Ovitz to resolve it swiftly.

*****

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