ENTERTAINMENT : Marriott CEO to Take Disney Financial Job

In an usual move, Walt Disney Co. went outside its ranks for a new chief financial officer Tuesday, naming Stephen Bollenbach, Host Marriott Corp.’s chief executive, to the post.

Bollenbach, 52, succeeds Richard Nanula, who left the position in November to become president of the Disney Stores worldwide, the company said.

The announcement ends an intensive search by Disney Chairman and Chief Executive Michael Eisner for a top-notch financial expert with global experience.

Industry analysts said Bollenbach’s experience as head of Marriott Corp.’s lodging and concession company should come in handy in his new role.

“This guy is immeasurably qualified,” said Seidler Cos. analyst Jeffrey Logsdon. “He obviously understands the hotel business, and he understands the real estate transaction business. Everything I hear says he’s a terrific choice.”

Bollenbach engineered the complicated breakup of Marriott Corp.’s hotel, real estate and highway concessions into two companies, which led to his being made chief executive.

He also advised real estate mogul Donald Trump on restructuring his financial empire when it was weighed down by huge debts, and he played a key role in the sale of Holiday Corp. to Bass in 1990.

Analysts say Bollenbach’s hiring represents a major coup for Eisner.

“This strengthens their management team,” said Jeffries & Co. entertainment analyst Lee Isgur.

Disney’s management strength has been a source of concern among investors since the death of Disney President Frank Wells last year, Eisner’s heart surgery in July and the departures of film whiz Jeffrey Katzenberg and TV chief Richard Frank.

Analysts said Bollenbach’s close ties to some Disney officials should make it easier for him to be accepted into the company’s tight-knit executive ranks.

“He’s coming in with a much clearer focus than someone who would have had no relationship with people in the company,” Logsdon said.

Gary Wilson, who sits on Disney’s board, worked at Marriott before serving as Disney’s chief financial officer from 1985 to 1989. Another former Marriott executive, Lawrence Murphy, is executive vice president at Disney.

Analysts say the biggest challenges Bollenbach will face when he assumes his new post next month will be to continue the turnaround at Euro Disney and pursuing the much-rumored purchase of a U.S. television network.

Disney has long been rumored to be interested in acquiring a stake in CBS Inc., but officials have said Disney will not pay a premium for it.

The troubled Euro Disney venture is slowly starting to show signs of recovery. Last week, Walt Disney Motion Pictures Chairman Joe Roth said there is a good chance Euro Disney will break even this year. The theme park outside Paris lost $110.4 million last year.

In a related announcement from Bethesda, Md., Marriott said Bollenbach will resign effective May 1. Richard Marriott will assume his responsibilities until a successor is announced, the company said.

Disney’s stock closed up 50 cents at $55.25 on the New York Stock Exchange. Host Marriott stock closed down 62.5 cents at $10.875.