Disney D- Day - FoxNews.com - 8/9/05
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Think you've got it tough? The Walt Disney Company has a conference call scheduled for 4 p.m. today for investors.
That would be tough enough, but also expected this afternoon is the ruling in their shareholders' lawsuit against the board of directors. This was the Chancery Court case heard in Delaware concerning the $140 million payout to Michael Ovitz.
Could the court decision be timed any worse? I don't think so. The Ovitz case is only one source of embarrassment, but it's maybe the most public.
Disney also has to answer for the demise of Miramax, which they instigated, as well their inability to negotiate with Pixar.
Then, there are the movies. Yikes! It was a rough year for the studio, as they watched their only real successes occur with Miramax and Pixar.
I hope someone on that conference call asks the key question: What sort of movies does Disney think they're going to make at faux-Miramax without the filmmakers who reaped hundreds of Oscars? They are all gone now.
That's an answer I'd like to hear.
As for the Ovitz decision, keep in mind that the shareholders' lawsuit was brought by the law firm of Milberg Weiss. That's the same firm suing Dreamworks Animation in another class action suit on behalf of shareholders.
The two suits have nothing to do with each other, except that their authors are the same.