Staid Old Disney Is Full of Surprises These Days

After showing clips from the new Sylvester Stallone futuristic action film “Judge Dredd” to theater owners Friday afternoon, Walt Disney Motion Pictures Group Chairman Joe Roth announced that a sequel is already in the works.

The title: “Judge Ito: No Mercy.”

As Roth announced the title, an image of the nation’s most famous trial judge appeared on a giant screen behind Roth, along with the title.

An obvious prank. But these days nothing appears too far-fetched at Disney, once one of the more predictable and, at least by Hollywood standards, more staid operations.

But lately, surprise has been the rule at Disney. At no time was that more true than Friday night, when it was disclosed that Richard H. Frank would leave as the company’s top TV executive, to be replaced by an unknown European consumer products executive, Dennis F. Hightower. Frank’s leaving had been widely rumored, although it wasn’t long ago that he was considered a Disney “lifer” who would probably retire there.

The tapping of Hightower by Chairman and Chief Executive Michael D. Eisner--who broke the news to Hightower in a late-night call Wednesday--took Hollywood by surprise. On Monday, Disney officials and Hightower himself sought to ease concerns about the appointment, making the case that it wasn’t as far-fetched as it might seem.

For one thing, the most lucrative part of the operation that Frank oversaw--home video--is essentially a consumer product, Hightower said in an interview.

Hightower also noted that his extensive experience in international business--living and working in Europe, Asia and Latin America during his business career--is important because Disney’s entertainment business is so global.

“There isn’t a major continent I haven’t lived in over the past 30 years,” he said.

Hightower, 53, also said he has experience in the new-technology area, including a Disney computer software venture. As a Mattel executive in the early 1980s, he said, he became familiar with the toy company’s video game operation and eventually helped wind it down when the business went south.

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Hightower also says he is a quick study. On Monday, he was making plans to attend the taping of a Disney pilot starring Marie Osmond and Betty White and was carrying with him an armload of videos of “Home Improvement,” “Ellen” and other hit Disney shows.

Less on Hightower’s mind is the fact that overnight he has become one of the highest-ranking black executives in the entertainment business. Some others include new Time Warner President Richard Parsons, Motown Records Chief Executive Jheryl Busby and Disney’s own Richard Nanula, who is moving soon from the chief financial officer’s post to get operational experience running the Disney Stores chain.

Although Hightower says he is aware of the “role model” he will play, he said that it isn’t something he thinks about.

“I am who I am, and more often am judged on what I do and what I deliver. It’s more like, ‘Oh, by the way, he happens to be an African-American,’ ” Hightower said.

His appointment is the latest shake-up at Disney triggered by the death last year of President Frank G. Wells in a helicopter crash and the later departure of Walt Disney Studios Chairman Jeffrey Katzenberg in a feud with Eisner.

Emerging as powers under Eisner at Disney have been such executives as Senior Executive Vice President Sanford Litvack and longtime Disney Channel President John F. Cooke, who is negotiating final details of a soon-to-be-announced venture with regional phone companies.

Some analysts remain concerned about the defections and whether Disney’s creative strategy remains intact with the departure of Katzenberg and now Frank.

Indeed, Disney’s stock dropped $1.625 a share on Monday to close at $54.50.

Placating investors is the fact that Disney’s stock has been soaring over the last few months amid record earnings and talk that the company may finally take the plunge and use its stock for a major acquisition, such as a network. On Monday, the company announced it passed the 26-million sales mark in video copies of “The Lion King,” a clear record.

“Wall Street really doesn’t care for the uncertainties. Mr. Eisner’s strategy in the long term and from the standpoint of orchestrating direction are not clear,” said analyst Harold Vogel of the Wall Street firm Cowen & Co.

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Hollywood semantics: In the wake of Frank’s departure, some are questioning whether Disney, as a publicly traded company, should have been a bit more upfront in its earlier public statements denying rumors that Frank was leaving.

Defending the company, a Disney spokesman said the company only repeated what Frank himself was saying.

Frank last Friday acknowledged that he had been “careful with my words” when he told The Times a week earlier that he had “no plans of leaving Disney” and that he wished he could kill the rumors.

Frank’s departure reinforces a Hollywood rule: Where there’s smoke, there’s usually a three-alarm fire. After all, it was just a few months ago that Sony Corp. was insisting that departed movie chief Peter Guber had a lengthy new contract and would be working at the studio for the rest of the decade.

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More Warner realignment: Time Warner’s music operations, its executive ranks reshuffled, is revamping its publicity area as well. Margaret Wade, chief spokeswoman for Warner Music Group Chairman Robert Morgado, has left the company, Warner officials confirmed. No successor was named.

Also, Ken Sunshine, once chief of staff to former New York Mayor David Dinkins, will work as a press aide under Warner Music U.S. Chairman Doug Morris, company sources said.