74 Between eyes.
October 21, 1990.
In the dimly lit hallways of Disney's headquarters, Michael Eisner can be seen walking hurriedly. While the company known for its iconic mouse emblem might appear to be a realm of innocent childlike wonder to the public, its lively ambiance can deceive many. This board meeting carries strong political undertones and serves as a stage for strategic public relations maneuvers among executive figures, prominent company members, and the shareholder board.
The company is under the guidance of Frank Wells, one of the most seasoned individuals in the industry since the early 1990s. One of his notable strengths is his adeptness at acquiring and merging companies without burdening the company with excessive liabilities. Constructing a corporate empire requires adept individuals capable of navigating through a complex bureaucracy.
In the realm of impending decisions, a CEO's signature is all that's required to purchase anything valued up to $50 million. However, all purchases exceeding this amount equate to 1% of Disney's total value as a studio.
The beloved Roy Disney, who is on the verge of succumbing to the pressures of the business world that he's unfamiliar with, and his overconfidence in established norms, may have committed one of the gravest mistakes an entrepreneur can make: resting on his laurels. When one finds themselves in a small pool of sharks, such as the corporate world, Mr. Frank Wells emerges as a patient and generous man who has skillfully tamed the ambitions of the governing board. His business acumen has gradually enabled him to build his empire, reinvigorating Disney's animation sector, expanding its theme parks, and diversifying its entertainment portfolio through movies and television channels.
On the other hand, Michael Eisner is the cold blade that gleams in the darkness. Contrary to the rumors surrounding him, he is not an irrational or irate man. He tends to communicate in a very direct, cordial, and friendly manner. However, it's in his retaliations that people lose sight of his humanity. Surprisingly, for those on the receiving end of his ire, it's best to liken him to a machine. If one is seeking someone capable of strategically conquering the selective market through the acquisition of various companies, then Eisner is the suitable candidate.
In this era, such vengeful behavior is not recognized, and now he is seen as a decent guy, someone who can bring miracles. He arrived during a dark period and in that time, he untangled deep pitfalls and initiated the era of company acquisitions. One of his first major moves was the merger with the Jim Henson Company, the very creator of "The Muppet Show." Unfortunately, this merger was quashed due to the founder Jim Henson's passing, but that was a circumstance beyond his control. His next acquisition was Miramax Films, a distribution company, which fell into the hands of Michael Eisner.
Encouraged by Roy E. Disney, he reached out to Ray Watson, a friend of his, and convinced him of the impact Pixar could have on Disney. Similarly, he consulted Jeffrey Katzenberg, who was in charge of the animation studios. Katzenberg was an optimistic animator who saw potential in 3D animation with its imaginative designs. However, the topic was met with skepticism by the executives, and they viewed the future with caution. Nevertheless, Katzenberg had some connection with John Lasseter before he was fired, which still stings to think about.
The board's resentment cannot deny the valid ideas that Disney can generate. Proposals to acquire new companies are discussed daily, but actual purchases only materialize when the top executives give the go-ahead. Last year's financial gains were more than enough to invest in several companies.
Pixar has triggered resentment, especially after being rejected by Steve Jobs and acquired by Lux Animation. The name alone sends a clear message: they want to challenge Disney in the realm of animated designs. This small company can now be considered a thorn in Disney's side.
Ideas to counter this are being mulled over. They're contemplating a forceful acquisition attempt. The "friend of a friend" could become the enemy. They held discussions with Warner, one of the major contributors to the comic book industry's excessive growth. They're considering a joint future purchase of a comic book company. Disney would start with a gradual, short offer. If any missteps occur, they would quickly manipulate the press to tarnish its reputation. Later on, Warner would enter the fray and attack its share of the pie.
Warner desires Lux Comics, while Disney wants Lux Animation, which includes Pixar. The negotiation presents two challenges. Firstly, this is a privately held corporation driven solely by private capital. Secondly, they're in the dark about certain financial balances. Multiple interactions with the IRS and some accounting maneuvers are underway due to the company's excessive growth, raising some doubts. There's also a desire to exert significant tax-related pressure.
-We've got almost everything in place, Frank. We're just waiting for any missteps. Warner doesn't give much credit to the company led by a youngster. They'll support us as long as we don't bid for the comic book company, - said Phil Lader, Disney's Executive Vice President and General Counsel.
-What's your take, Michael? How should we proceed? - asked Frank.
-As a family-owned company, the father and son are the sole bosses. Only immense pressure can change the father's mind to allow the purchase. If we play our cards right, according to economic analysis, the company will face a financial downturn in about four years. The disproportionate growth of the business is unsustainable. It will need investment sooner or later, - stated Michael Eisner.
-We could target their business. What's our significance in San Jose? We can attack their comic book sales businesses, - suggested Ray Watson.
-They have a four-year contract that expires in 1992, - Phil chimed in.
-Dark Horse Comics won't budge easily, but we can stir up Mike Richardson. He's an enthusiast. If we close the doors for Lux Comics' distribution, it'll be a big blow, - Eisner proposed.
-Let's do it, -- Frank Wells agreed. -- Phil, what do you think? You know the company's details. -
-I can try to sway Mike Richardson, but it will come at a cost. He'll want something of similar value. His collaboration with Lux Comics is beneficial. Only something of equivalent worth could make him dissolve the contract. However, we might have to give up a sizable portion, - shared Phil Lader, Executive Vice President and General Counsel.
-Do whatever it takes. I want the comic company to be without a distributor within a year, as far as our concerns go, - stated Michael Eisner.
-The luxury of Hollywood can indeed be dangerous. We have some other ideas, - added Frank Wells.
-Well, Warner wants to maintain a good relationship with us. They've informed us that they'll suffocate payments, nullify the contract with legal loopholes, and so on until the relationship becomes unsustainable. If they don't make much money, sooner or later comic book sales will decline or they'll make a mistake. We're not in the '50s anymore; that business is already lost, - shared Ray Watson.
Phil Lader and Ray Watson are like grass snakes often utilized by the big Hollywood gorillas for their benefits. These men are a research, management, and advisory team. They keep an eye on new news, businesses, or the coming tomorrow.
They identify potential threats that could cause disruptions or future gains. Emerging companies are treated with harassment, rejection, and lack of benefits. Attacking these firms that could fragment the company's interests is something that occasionally happens in Hollywood. As advisors, they possess extensive knowledge and influential contacts both within and outside the industry.
-Alright, let's move on to the next point of this meeting. Disneyland Paris has experienced some protests from the French, - said Michael Eisner.
The meeting continued for quite some time. Billy had no idea that his upcoming years in business would start to dwindle, as he was unknowingly competing against the active sabotage of two giants that were waiting to acquire his company piece by piece.
...
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I'm already finishing the first arc of the novel, which is more or less up to 112. I have some interesting sketches. the next phase is the actor's life.
