Mouse looking up
Disney paints rosy outlook despite slow Go
But Disney chairman-CEO Michael Eisner put a positive spin on the money-losing Internet business, saying, "With Go.com, I believe we are now the sleeping giant of the Internet." Once streaming video is commonplace, he added, Disney is ready with a vast library and the ability to create new content.
Added Go.com chairman Steve Bornstein: "I see a time, in the next few years, or even sooner, where nobody will talk about television or the Internet separately. They will become one synergistic, fused media."
Proposals rejected
In scheduled business, shareholders re-elected 10 company directors Tuesday and rejected two proposals -- one to consider reducing executive salaries and discontinue bonuses, and another to create an election contest for each seat on the board.
That done, Disney execs led by Eisner described the Mouse House as a strong and vibrant company that's on the mend and slashing costs after a decidedly down year in fiscal 1999.
The remarks, at Disney's annual shareholders meeting in Chicago -- the birthplace of Walt Disney -- were a watered-down version of comments Eisner and his team have made several times in recent months to Wall Street analysts and investors.
Some 3,000 shareholders turned up at the yearly meeting, Disney said. They were presented with the opening clip of animated pic "Dinosaur," which Eisner predicted "could be the big event for Memorial (Day) weekend with major implications for our entire company."
He also touted the upcoming holiday film "The Emperor's New Groove," a comedy set in a fictional South American kingdom. And he said Disney, which garnered 31 Academy Award nominations last week, is chipping away at costs on the film side with a smaller slate, lower production budgets, consolidation of operations, fewer talent deals and trimming of overhead. The studio cut costs by $500 million in the past few years.
Disney is also out to exploit its brands better, as its most famous character is featured on a new album, "La Vida Mickey," from Walt Disney Records, videogames and much more.
Theme park boom
The company hawked a growing theme park empire as well. California Adventure opens in 12 months, while Tokyo DisneySea is scheduled to launch in 18 months, just across from Tokyo Disneyland. In two years, a Disney Studios park will open at Disneyland Paris. The ambitious Hong Kong park comes on board in 2005 and, the company hopes, will give it a toehold in the vast Chinese market. Execs see free cash flow of more than $2 billion from the attractions division between 2002 and 2003.
Disney is "now seeing signs of return to solid growth into the future," Eisner said. The company expects that its cost-cutting measures will save it about $500 million per year starting in 2001.
Robert Iger, Eisner's newly appointed No. 2 and chief operating officer, stressed the Mouse's international push. For example, he said that in Japan, Disney is working with a major cellular company to distribute Disney-branded content and that the company continues to launch Disney channels around the world.
