Disney CEO Reassures Analysts, Investors

Walt Disney Co. Chairman Michael Eisner met with Wall Street investors and analysts Friday to convey that although the entertainment company has a multitude of problems such as the money-losing ABC network and lagging theme park attendance, it’s not the unhappiest place on Earth.

During an afternoon meeting, Eisner, who also is chief executive, and Disney Chief Financial Officer Thomas Staggs unveiled no significant news, according to people who were at the meetings. But they did try to counter the growing belief among investors and analysts that ABC’s upcoming fall season is a make-or-break time for the firm.

Eisner and Disney have been under mounting pressure as the company’s stock has sagged to levels not seen since the mid-1990s. Institutional investors, some of whom will meet next week with Eisner to discuss the company’s problems and its corporate governance, have complained openly about Disney’s performance.

In addition, some board members, who are scheduled to meet this month, are pushing Eisner for major changes in an effort to turn things around.

Jeffrey B. Logsdon of investment bank Gerard Klauer Mattison said Eisner on Friday called reviving ABC “a process” and not a one-time event. As Staggs was leaving the meeting, the CFO reiterated that point to Reuters, saying that although a turnaround would take time, Disney “has tremendous talent and a strong slate for the fall.” Staggs added that ABC’s television group already was showing signs of strength, helped in part by election-year political advertising.

Much of the company’s problems stem from deteriorating ratings at ABC, although other divisions, notably the company’s theme park unit, also have shown disappointing results.

ABC was a major topic, but Logsdon described the main theme of the meetings as “reassurance from the chairman that he feels things are moving in the right direction.”

Disney shares were unchanged Friday at $15.50 on the New York Stock Exchange.

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Mulligan reported from New York and Bates from Los Angeles. Reuters was used in compiling this report.