Company Town: Ovitz Joins Disney : THE HIRING OF OVITZ

If Michael Ovitz is God, as the Hollywood pundits joke, then what does that say about his boss? One thing that hiring Ovitz does for Walt Disney Co. Chairman Michael Eisner is leave him better able to focus on the big picture. Eisner put Ovitz in charge of all three Disney divisions: theme parks, filmed entertainment and consumer products. That’s in addition to Capital Cities/ABC Inc. when Disney’s $19-billion acquisition of that media giant goes through. A look at what Disney and Eisner hope to gain:

WHAT OVITZ BRINGS TO THE PARTY:

* Succession solution: By arriving at Disney at the youthful age of 48, Ovitz answers some critics’ questions about high-level succession and the recent loss of executive talent.

* Global reach: The man who brokered the Sony-Columbia and Matsushita-MCA deals and is assisting in marketing Coca-Cola internationally has worldwide contacts that should help Disney sell sports and entertainment abroad.

* Creative people: As co-founder of the entertainment industry’s most powerful talent agency, he will cement Disney’s relationships with actors, directors, musicians and screenwriters.

* Techno-friendliness: His recent stint as adviser to regional phone companies Pacific Telesis Group, Nynex and Bell Atlantic on their Tele-TV interactive-television project shows Ovitz to be at home on the cutting edge.

OPPORTUNITY--OR THREAT?

Disney’s hiring of Ovitz shakes up the Hollywood scene. Here are some key players and a look at how the action may affect them:

DOWN

EDGAR BRONFMAN Jr., chief executive of Seagram Co., new parent of MCA: Having failed to hire close friend Ovitz to run MCA, he has now lost him as a key adviser on Seagram’s entertainment investments.

ROBERT IGER, president of Capital Cities/ABC: Possibly the biggest loser in the Ovtiz hiring. He not only won’t emerge as Eisner’s No. 2, but will also have Ovitz between him and Eisner.

UP

JEFF BERG, head of International Creative Management: If Ovitz’s departure unsettles rival talent agency CAA, then Berg’s ICM and other major agencies such as William Morris Agency and United Talent Agency could grab some blue-chippers from CAA’s list of more than 1,000 actors, directors and other creative types.

NEUTRAL

RON MEYER, new president of MCA: As co-founder of CAA, his talents meshed well with Ovitz’s. Now, after taking the MCA job that reportedly was offered to Ovitz, he’ll find himself competing with his former partner.

JOE ROTH, chairman of Walt Disney Motion Pictures Group: It’s a question of control. With a hands-on boss like Ovitz, will the Disney studio chief have the kind of autonomy he wants?

Disney Stock

Disney share prices and some recent key events. Weekly closes, except latest:

April 3, 1994: No. 2 Disney executive Frank G. Wells dies in a helicopter crash.

Aug. 24, 1994: Disney studio chief Jeffrey Katzenberg quits.

July 31, 1995: Disney announces purchase of Capital Cities / ABC for $19 billion.

Monday: $59, up $2.50