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The Walt Disney Company

The Walt Disney Company
TypePublic
Traded asNYSE: DIS
Dow Jones Industrial Average Component
S&P 500 Component
IndustryMass media
FoundedLos Angeles, California, U.S.[1]
(October 16, 1923 (1923-10-16))
Founder(s)Walt and Roy Disney
HeadquartersWalt Disney Studios,
500 S. Buena Vista Street,
Burbank, California, U.S.
Area servedWorldwide
Key peopleBob Iger (Chairman & CEO)
ProductsCable television, publishing, movies, theme parks, broadcasting, radio, web portals
ServicesLicensing
RevenueIncrease US$ 42.278 billion (2012)[2]
Operating incomeIncrease US$ 09.260 billion (2012)[2]
Net incomeIncrease US$ 05.682 billion (2012)[2]
Total assetsIncrease US$ 74.898 billion (2012)[2]
Total equityIncrease US$ 39.759 billion (2012)[2]
Employees166,000 (2012)[2]
Divisions
Subsidiaries
Websitewww.thewaltdisneycompany.com
The Walt Disney Studios, the headquarters of The Walt Disney Company

The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media corporation headquartered in Walt Disney Studios, Burbank, California. It is the largest media conglomerate in the world in terms of revenue.[3] Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. Taking on its current name in 1986, it expanded its existing operations and also started divisions focused upon theater, radio, music, publishing, and online media. In addition, Disney has created new divisions of the company in order to market more mature content than it typically associates with its flagship family-oriented brands.

The company is best known for the products of its film studio, the Walt Disney Studios, and today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, A+E Networks, LifeTime and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world. It also has a successful music division. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. An early and well-known cartoon creation of the company, Mickey Mouse, is the official mascot of The Walt Disney Company.

Contents

Corporate history

See also: Timeline of The Walt Disney Company

1923–1928: The silent era

In early 1923, Kansas City, Missouri animator Walt Disney created a short film entitled Alice's Wonderland, which featured child actress Virginia Davis interacting with animated characters. After the bankruptcy in 1923 of his previous firm, Laugh-O-Gram Films,[ChWDC 1] Disney moved to Hollywood to join his brother Roy O. Disney. Film distributor Margaret J. Winkler of M.J. Winkler Productions contacted Disney with plans to distribute a whole series of Alice Comedies purchased for $1,500 per reel with Disney as a production partner. Walt and his brother Roy Disney formed Disney Brothers Cartoon Studio that same year. More animated films followed after Alice.[4]

In January 1926 with the completion of the Disney studio on Hyperion Street, the Disney Brothers Studio's name is changed to the Walt Disney Studio.[ChWDC 2]

After the demise of the Alice comedies, Disney developed an all-cartoon series starring his first original character, Oswald the Lucky Rabbit,[4] which was distributed by Winkler Pictures through Universal Pictures.[ChWDC 2] The distributor had copyright Oswald, so Disney only made a few hundred dollars.[4] Disney only completed 26 Oswald shorts before losing the contract in February 1928, when Winkler's husband Charles Mintz took over their distribution company. After failing to take over the Disney Studio, Mintz hired away four of Disney's primary animators except Ub Iwerks to start his own animation studio, Snappy Comedies.[ChWDC 3]

1928–1934: Mickey Mouse and Silly Symphonies

Original poster for Flowers and Trees (1932)

In 1928, to recover from the loss of Oswald the Lucky Rabbit, Disney came up with idea of a mouse character named Mortimer while on a train headed to California drawing up a few simple drawings. The mouse was later renamed Mickey Mouse and starred in several Disney produced films. Ub Iwerks refined Disney's initial design of Mickey Mouse.[4] Disney's first sound film Steamboat Willie, a cartoon starring Mickey, was released on November 18, 1928[ChWDC 3] through Pat Powers' distribution company.[4] It was the first Mickey Mouse sound cartoon released, but the third to be created, behind Plane Crazy and The Gallopin' Gaucho.[ChWDC 3] Steamboat Willie was an immediate smash hit, and its initial success was attributed not just to Mickey's appeal as a character but to the fact that it was the first cartoon to feature synchronized sound.[4] Disney used Pat Powers' Cinephone system, created by Powers using Lee De Forest's Phonofilm system.[ChWDC 3] Steamboat Willie premiered at B. S. Moss's Colony Theater in New York City, now The Broadway Theatre.[5] Plane Crazy and The Galloping Gaucho were then retrofitted with synchronized sound tracks and re-released successfully in 1929.[ChWDC 3]

Disney continued to produce cartoons with Mickey Mouse and other characters,[4] and began the Silly Symphonies series with Columbia Pictures signing on as Symphonies distributor in August 1929. In September 1929, theater manager Harry Woodin requested permission to start a Mickey Mouse Club which Walt approved. In November, test comics strips were sent to King Features, who requested additional samples to show to the publisher, William Randolph Hearst. On December 16, the Walt Disney Studios partnership was reorganized as a corporation with the name of Walt Disney Productions, Limited with a merchandising division, Walt Disney Enterprises, and two subsidiaries, Disney Film Recording Company, Limited and Liled Realty and Investment Company for real estate holdings. Walt and his wife held 60% (6,000 shares) and Roy owned 40% of WD Productions. On December 30, King Features signed its first newspaper, New York Mirror, to publish the Mickey Mouse comic strip with Walt' permission.[ChWDC 4]

In 1932, Disney signed an exclusive contract with Technicolor (through the end of 1935) to produce cartoons in color, beginning with Flowers and Trees (1932). Disney released cartoons through Powers' Celebrity Pictures (1928–1930), Columbia Pictures (1930–1932), and United Artists (1932–1937).[citation needed] The popularity of the Mickey Mouse series allowed Disney to plan for his first feature-length animation.[4]

1934–1945: Snow White and the Seven Dwarfs and World War II

Deciding to push the boundaries of animation even further, Disney began production of his first feature-length animated film in 1934. Taking three years to complete, Snow White and the Seven Dwarfs, premiered in December 1937 and became highest-grossing film of that time by 1939.[6] Snow White was released through RKO Radio Pictures, which had assumed distribution of Disney's product in July 1937,[ChWDC 5] after United Artists attempted to attain future television rights to the Disney shorts.[7]

Using the profits from Snow White, Disney financed the construction of a new 51-acre (210,000 m2) studio complex in Burbank, California. The new Walt Disney Studios, in which the company is headquartered to this day, was completed and open for business by the end of 1939.[ChWDC 6] The following year on April 2, Walt Disney Productions had its initial public offering.[ChWDC 7]

The studio continued releasing animated shorts and features, such as Pinocchio (1940), Fantasia (1940), Dumbo (1941), and Bambi (1942).[4] After World War II began, box-office profits declined. When the United States entered the war after the attack on Pearl Harbor, many of Disney's animators were drafted into the armed forces. The U.S. and Canadian governments commissioned the studio to produce training and propaganda films. By 1942 90% of its 550 employees were working on war-related films.[8] Films such as the feature Victory Through Air Power and the short Education for Death (both 1943) were meant to increase public support for the war effort. Even the studio's characters joined the effort, as Donald Duck appeared in a number of comical propaganda shorts, including the Academy Award-winning Der Fuehrer's Face (1943).

1946–1954: Post-war and television

With limited staff and little operating capital during and after the war, Disney's feature films during much of the 1940s were "package films," or collections of shorts, such as The Three Caballeros (1944) and Melody Time (1948), which performed poorly at the box-office. At the same time, the studio began producing live-action films and documentaries. Song of the South (1946) and So Dear to My Heart (1948) featured animated segments, while the True-Life Adventures series, which included such films as Seal Island (1948) and The Vanishing Prairie (1954), were also popular and won numerous awards.

The release of Cinderella in 1950 proved that feature-length animation could still succeed in the marketplace. Other releases of the period included Alice in Wonderland (1951) and Peter Pan (1953), both in production before the war began, and Disney's first all-live action feature, Treasure Island (1950). Other early all-live-action Disney films included The Story of Robin Hood and His Merrie Men (1952), The Sword and the Rose (1953), and 20,000 Leagues Under the Sea (1954). Disney ended its distribution contract with RKO in 1953, forming its own distribution arm, Buena Vista Distribution.[9]

In December 1950, Walt Disney Productions and The Coca-Cola Company teamed up for Disney's first venture into television, the NBC television network special An Hour in Wonderland. In October 1954, the ABC network launched Disney's first regular television series, Disneyland, which would go on to become one of the longest-running primetime series of all time. Disneyland allowed Disney a platform to introduce new projects and broadcast older ones, and ABC became Disney's partner in the financing and development of Disney's next venture, located in the middle of an orange grove near Anaheim, California. It was the first phase of a long corporate relationship which, although no one could have anticipated it at the time, would culminate four decades later in the Disney company's acquisition of the ABC network, its owned and operated stations, and its numerous cable and publishing ventures.

1955–1965: Disneyland

Walt Disney opens Disneyland, July 1955.

In 1954, Walt Disney used his Disneyland series to unveil what would become Disneyland, an idea conceived out of a desire for a place where parents and children could both have fun at the same time. On July 18, 1955, Walt Disney opened Disneyland to the general public. On July 17, 1955, Disneyland was previewed with a live television broadcast hosted by Art Linkletter and Ronald Reagan. After a shaky start, Disneyland continued to grow and attract visitors from across the country and around the world. A major expansion in 1959 included the addition of America's first monorail system.

For the 1964 New York World's Fair, Disney prepared four separate attractions for various sponsors, each of which would find its way to Disneyland in one form or another. During this time, Walt Disney was also secretly scouting out new sites for a second Disney theme park. In November 1965, "Disney World" was announced, with plans for theme parks, hotels, and even a model city on thousands of acres of land purchased outside of Orlando, Florida.

Disney continued to focus its talents on television throughout the 1950s. Its weekday afternoon children's television program The Mickey Mouse Club, featuring its roster of young "Mouseketeers", premiered in 1955 to great success, as did the Davy Crockett miniseries, starring Fess Parker and broadcast on the Disneyland anthology show.[4] Two years later, the Zorro series would prove just as popular, running for two seasons on ABC, as well as separate episodes on the Disneyland series.[citation needed] Despite such success, Walt Disney Productions invested little into television ventures in the 1960s[citation needed], with the exception of the long-running anthology series, later known as The Wonderful World of Disney.[4]

Disney's film studios stayed busy as well, averaging five or six releases per year during this period. While the production of shorts slowed significantly during the 1950s and 1960s, the studio released a number of popular animated features, like Lady and the Tramp (1955), Sleeping Beauty (1959) and One Hundred and One Dalmatians (1961), which introduced a new xerography process to transfer the drawings to animation cels.[citation needed] Disney's live-action releases were spread across a number of genres, including historical fiction (Johnny Tremain, 1957), adaptations of children's books (Pollyanna, 1960) and modern-day comedies (The Shaggy Dog, 1959). Disney's most successful film of the 1960s was a live action/animated musical adaptation of Mary Poppins, which was one of the all time highest grossing movie[4] and received five Academy Awards, including Best Actress Julie Andrews.[citation needed]

The theme park design and architectural group became so integral to the Disney studio's operations that the studio bought it on February 5, 1965 along with the WED Enterprises name.[10][11][12][13]

1966–1971: The deaths of Walt and Roy Disney and the opening of Walt Disney World

On December 15, 1966, Walt Disney died of complications relating to lung cancer,[4] and Roy Disney took over as chairman, CEO, and president of the company. One of his first acts was to rename Disney World as "Walt Disney World" in honor of his brother and his vision.[citation needed]

In 1967, the last two films Walt actively supervised were released, the animated feature The Jungle Book[4] and the musical The Happiest Millionaire.[citation needed] The studio released a number of comedies in the late 1960s, including The Love Bug (1969's highest grossing film)[4] and The Computer Wore Tennis Shoes (1969), which starred another young Disney discovery, Kurt Russell. The 1970s opened with the release of Disney's first "post-Walt" animated feature, The Aristocats, followed by a return to fantasy musicals in 1971's Bedknobs and Broomsticks.[4] Blackbeard's Ghost was another successful film during this period.[4]

On October 1, 1971, Walt Disney World opened to the public, with Roy Disney dedicating the facility in person later that month. On December 20, 1971, Roy Disney died of a stroke, leaving the company under control of Donn Tatum, Card Walker, and Walt's son-in-law Ron Miller, each trained by Walt and Roy.

1972–1984: Theatrical malaise and new leadership

While Walt Disney Productions continued releasing family-friendly films throughout the 1970s, such as Escape to Witch Mountain (1975)[4] and Freaky Friday (1976), the films did not fare as well at the box office as earlier material. However, the animation studio saw success with Robin Hood (1973), The Rescuers (1977), and The Fox and the Hound (1981).

As head of the studio, Miller attempted make films to drive the profitable teenage market who generally passed on seeing Disney movies.[14] Inspired by the popularity of Star Wars, the Disney studio produced the science-fiction adventure The Black Hole in 1979 that cost $20 million to make, but was lost in Star Wars' wake.[4] The Black Hole was the first Disney production to carry a PG rating in the United States.[14][N 1] Disney dabbled in the horror genre with The Watcher in the Woods, and financed the boldly innovative Tron; both films were released to minimal success.[4]

Disney also hired outside producers for film projects, which had never been done before in the studio's history.[14] In 1979, Disney entered a joint venture with Paramount Pictures on the production of the 1980 film adaptation of Popeye and Dragonslayer (1981); the first time Disney collaborated with another studio. Paramount distributed Disney films in Canada at the time, and it was hoped that Disney's marketing prestige would help sell the two films.[14]

Finally, in 1982, the Disney family sold the naming rights and rail-based attractions to the Disney film studio for 818,461 shares of Disney stock then worth $42.6 million none of which went to Retlaw. Also, Roy E. Disney objected to the overvalued purchase price of the naming right and voted against the purchase as a Disney board director.[15] The 1983 release of Mickey's Christmas Carol began a string of successful movies, starting with Never Cry Wolf and the Ray Bradbury adaptation Something Wicked This Way Comes.[4] In 1984, Disney CEO Ron Miller created Touchstone Pictures as a brand for Disney to release more adult-oriented material. Touchstone's first release was the comedy Splash (1984), which was a box office success.[citation needed]

With The Wonderful World of Disney remaining a prime-time staple, Disney returned to television in the 1970s with syndicated programing such as the anthology series The Mouse Factory and a brief revival of the Mickey Mouse Club. In 1980, Disney launched Walt Disney Home Video to take advantage of the newly emerging videocassette market. On April 18, 1983, The Disney Channel debuted as a subscription-level channel on cable systems nationwide, featuring its large library of classic films and TV series, along with original programming and family-friendly third-party offerings.

Walt Disney World received much of the company's attention through the 1970s and into the 1980s. In 1978, Disney executives announced plans for the second Walt Disney World theme park, EPCOT Center, which would open in October 1982. Inspired by Walt Disney's dream of a futuristic model city, EPCOT Center was built as a "permanent World's Fair", complete with exhibits sponsored by major American corporations, as well as pavilions based on the cultures of other nations. In Japan, the Oriental Land Company partnered with Walt Disney Productions to build the first Disney theme park outside of the United States, Tokyo Disneyland, which opened in April 1983.

Despite the success of the Disney Channel and its new theme park creations, Walt Disney Productions was financially vulnerable. Its film library was valuable, but offered few current successes, and its leadership team was unable to keep up with other studios, particularly the works of Don Bluth, who defected from Disney in 1979.

By the early 1980s, the Parks generating 70% of Disney's income.[4]

In 1984, financier Saul Steinberg's Reliance Group Holdings launched a hostile takeover bid for Walt Disney Productions,[4] with the intent of dissolving the company and selling off its various assets.[citation needed] Disney bought out Reliance's 11.1% stake in the company. However, other shareholder filed suit claiming the deal devaluated Disney's stock and for Disney management to retain their positions. The shareholder lawsuit was settled in 1989 for $45 total from Disney and Reliance.[4]

1984–2004: The Eisner era

A view of downtown Celebration, Florida: the city was planned by The Walt Disney Company
See also, 1984–2004 under Timeline of The Walt Disney Company.

With the Sid Bass family purchase of 18.7 percent of Disney, Bass and the board brought in Michael Eisner as CEO from Paramount Pictures and Frank Wells from Warner Bros. as president. Eisner emphasized Touchstone Films with Down and Out in Beverly Hills (1985) to start leading to increased output with Outrageous Fortune, Tin Men, Ruthless People, and additional hits. Eisner used expanding cable and home video markets to sign deals using Disney shows and films with a long-term deal with Showtime Networks for Disney/Touchstone releases through 1996 and entering television syndication and distribution for TV series as The Golden Girls. Disney began limited releases of its previous films on video tapes in the late 1980s. Eisner's Disney purchased KHJ, an independent Los Angeles TV station.[4]

Organized in 1985, Silver Screen Partners II, LP financed films for Walt Disney Company with $193 million. In January 1987, Silver Screen III began financing movies for Disney with $300 million raised, the largest amount raised for a film financing limited partnership by E.F. Hutton.[16] Silver Screen IV was also set up to finance Disney's studios.[17]

Beginning with Who Framed Roger Rabbit (1988), and later, The Little Mermaid (1989), its flagship animation studio enjoyed a series of commercial and critical successes. In addition, the company successfully entered the field of television animation with a number of lavishly budgeted and acclaimed series such as Adventures of the Gummi Bears, Duck Tales and Gargoyles.[citation needed] Disney moved to first place in box office receipts by 1988 and had increased revenues by 20% every year.[4]

Named the "Disney Decade" by the company, the executive talent attempted to move the company to new heights in the 1990s with huge changes and accomplishments.[4] In September 1990, The Disney Company arranged for financing up to $200 million by a unit of Nomura Securities for Interscope films made for Disney. On October 23, Disney formed Touchwood Pacific Partners I which would supplant the Silver Screen Partnership series as their movie studios' primary source of funding.[17]

In 1991, hotels, home video distribution, and Disney merchandising became 28 percent of total company revenues with international revenues contributed 22 percent of revenues. The company committed its studios in the first quarter of 1991 to produce 25 films in 1992. However, 1991 saw net income drop by 23% and had no growth for the year, but saw the release of Beauty and the Beast, winner of 2 Academy Awards and top grossing film in the genre. Disney next moved into publishing with Hyperion Press and adult music with Hollywood Records while Disney Imagineering was laying off 400 employees.[4]

Disney also broadened its adult offerings in film when then Disney Studio Chairman Jeffrey Katzenberg acquired Miramax Films in 1993.

Wells died in a helicopter crash in 1994.[4] Shortly thereafter, Katzenberg resigned and formed Dreamworks SKG because Eisner would not appoint Katzenberg to Wells' now-available post plus Katzenberg sued over the terms of his contract.[4] Instead, Eisner recruited his friend Michael Ovitz, one of the founders of the Creative Artists Agency, to be President, with minimal involvement from Disney's board of directors (which at the time included Oscar-winning actor Sidney Poitier, the CEO of Hilton Hotels Corporation Stephen Bollenbach, former U.S. Senator George Mitchell, Yale dean Robert A. M. Stern, and Eisner's predecessors Raymond Watson and Card Walker). Ovitz lasted only 14 months and left Disney in December 1996 via a "no fault termination" with a severance package of $38 million in cash and 3 million stock options worth roughly $100 million at the time of Ovitz's departure. The Ovitz episode engendered a long running derivative suit, which finally concluded in June 2006, almost 10 years later. Chancellor William B. Chandler, III of the Delaware Court of Chancery, despite describing Eisner's behavior as falling "far short of what shareholders expect and demand from those entrusted with a fiduciary position..." found in favor of Eisner and the rest of the Disney board because they hadn't violated the letter of the law (namely, the duty of care owed by a corporation's officers and board to its shareholders).[18]

Eisner attempted in 1994 to purchase NBC from GE, but the deal failed due to GE wanting to keep 51% ownership of the network. Disney acquired many other media sources during the decade, including a merger with Capital Cities/ABC in 1995 which brought broadcast network ABC and its assets, including the A&E Television Networks and ESPN networks, into the Disney fold.[4]

Disney lost a $10.4 million lawsuit in September 1997 to Marsu B.V. over Disney's failure to produce as contracted 13 half-hour Marsupilami cartoon shows. Instead Disney felt other internal "hot properties" deserved the company's attention.[19]

In 1998, Disney began a move into the internet field with the purchase of Starwave and 43 percent of Infoseek. In 1999, Disney purchased the remaining shares of Infoseek and launch the Go Network portal in January. Disney also launched its cruise line with the christening of Disney Magic and a sister ship, Disney Wonder. Two professional sports teams were acquired the Mighty Ducks of Anaheim and Anaheim Angels.[4]

As the Katzenberg case dragged on as his contract included a portion of the film revenue from ancillary markets forever. Katzenberg had offered $100 to settle the case but Eisner felt the original claim amount of about half a billion too much, but then the ancillary market clause was found. Disney lawyers tried to indicate a decline situation which reveal the some of the problems in the company. ABC had declining rating and increasing costs while the film segment had two film failures. While neither party revealed the settlement amount, it is estimated at $200 million.[4]

Eisner's controlling style inhibited efficiency and progress according to some critics, while other industry experts indicated that "age compression" theory led to a decline in the company's target market due to youth copying teenage behavior earlier.[4]

2000 brought an increase in revenue of 9% and net income of 39% with ABC and ESPN leading the way and Parks and Resorts marking its sixth consecutive year of growth. However the September 11 attacks led to a complete halt of vacation travel and led to a recession. The recession led to a decrease in ABC revenue. Plus, Eisner had the company make an expensive purchase of Fox Family Worldwide. 2001 was a year of cost cutting laying off 4,000 employees, Disney parks operations decreased, slashing annual live-action film investment, and minimizing Internet operations. While 2002 revenue had a small decrease from 2001 with the cost cutting, net income rose to $1.2 billion with two creative film releases. In 2003, the Studio became the first studio to record over $3 billion in worldwide box office receipts.[4]

"Save Disney" campaign and Eisner's ouster

Eisner wanted the board to not renominate Roy E. Disney, the son of Disney co-founder Roy O. Disney, as a board director citing his age of 72 as a required retirement age. Stanley Gold responded by resigning from the board and requesting the other board members oust Eisner.[4] In 2003, Disney resigned from his positions as the company's vice chairman and chairman of Walt Disney Feature Animation,[ChWDC 8] accusing Eisner of micromanagement, flops with the ABC television network, timidity in the theme park business, turning the Walt Disney Company into a "rapacious, soul-less" company, and refusing to establish a clear succession plan, as well as a string of box-office movie flops starting in the year 2000.

In 2004, Pixar Animation Studios began looking for another distributor after its 12 year contract with Disney with its relationship strained over issues of control and money with Eisner. Comcast Corporation made an unsolicited $54 billion bid to acquire the company. A couple of high budget movies flopped at the box office. With these difficulties and some board directors dissatisfaction, Eisner ceded the board chairmanship.[4]

On March 3, 2004, at Disney's annual shareholders' meeting, a surprising and unprecedented 45% of Disney's shareholders, predominantly rallied by former board members Roy Disney and Stanley Gold, withheld their proxies to re-elect Eisner to the board. Disney's board then gave the chairmanship position to Mitchell. However, the board did not immediately remove Eisner as chief executive.[ChWDC 9]

On March 13, 2005, Robert Iger was announced as Eisner successor as CEO. On September 30, Eisner resigned both as an executive and as a member of the board of directors.[ChWDC 10]

2005–present: The Iger era

On July 8, 2005, Walt Disney's nephew, Roy E. Disney returned to The Walt Disney Company as a consultant and with the new title of Non Voting Director, Emeritus. Walt Disney Parks and Resorts celebrated the 50th anniversary of Disneyland Park on July 17, and opened Hong Kong Disneyland on September 12. Walt Disney Feature Animation released Chicken Little, the company's first film using 3-D animation. On October 1, Bob Iger replaced Michael Eisner as CEO. Miramax co-founders Bob Weinstein and Harvey Weinstein also departed the company to form their own studio. On July 25, 2005, Disney announced that it was closing DisneyToon Studios Australia in October 2006, after 17 years of existence.[citation needed]

In 2006, Disney acquired Oswald the Lucky Rabbit, Disney’s pre-Mickey silent animation star.[20] Aware that Disney's relationship with Pixar was wearing thin, President and CEO Robert Iger began negotiations with leadership of Pixar Animation Studios, Steve Jobs and Ed Catmull, regarding possible merger. On January 23, 2006, it was announced that Disney would purchase Pixar in an all-stock transaction worth $7.4 billion. The deal was finalized on May 5; and among noteworthy results was the transition of Pixar's CEO and 50.1% shareholder, Steve Jobs, becoming Disney's largest individual shareholder at 7% and a member of Disney's Board of Directors.[21][22] Ed Catmull took over as President of Pixar Animation Studios. Former Executive Vice-President of Pixar, John Lasseter, became Chief Creative Officer of both Walt Disney Animation Studios and Pixar Animation Studios, as well assuming the role of Principal Creative Advisor at Walt Disney Imagineering.[22]

After a long time working in the company as a senior executive and large shareholder, Director Emeritus Roy E. Disney died from stomach cancer on December 16, 2009. At the time of his death, he owned roughly 1% of all of Disney which amounted to 16 million shares. He is seen to be the last member of the Disney family to be actively involved in the running of the company and working in the company altogether.[citation needed]

On August 31, 2009, Disney announced a deal to acquire Marvel Entertainment, Inc. for $4.24 billion.[23] The deal was finalized on December 31, 2009 in which Disney acquired full ownership on the company.[24] Disney has stated that their acquisition of Marvel Entertainment will not affect Marvel's products, neither will the nature of any Marvel characters be transformed.[25]

In October 2009, Disney Channel president Rich Ross, hired by Iger, replaced Dick Cook as chairman of the company and, in November, began restructuring the company to focus more on family friendly products. Later in January 2010, Disney decided to shut down Miramax after downsizing Touchstone, but one month later, they began selling the Miramax brand and its 700-title film library. On March 12, ImageMovers Digital, Robert Zemeckis's company which Disney had bought in 2007, was shut down. In April 2010, Lyric Street, Disney's country music label in Nashville, was shut down. In May 2010, the company sold the Power Rangers brand, as well as its 700-episode library, back to Haim Saban. In June, the company canceled Jerry Bruckheimer's film project Killing Rommel.[citation needed] In January 2011, Disney Interactive Studios was downsized.[26] In November, two ABC stations were sold.[27] With the release of Tangled in 2010, Ed Catmull said that the "princess" genre of films was taking a hiatus until "someone has a fresh take on it … but we don't have any other musicals or fairytales lined up."[28] He explained that they were looking to get away from the princess era due to the changes in audience composition and preference.[citation needed] However in the Facebook page, Ed Catmull stated that this was just a rumor.[29]

In April 2011, Disney broke ground on Shanghai Disney Resort. Costing $4.4 billion, the resort is slated to open in 2015.[30] Later, in August 2011, Bob Iger stated on a conference call that after the success of the Pixar and Marvel purchases, he and the Walt Disney Company are looking to "buy either new characters or businesses that are capable of creating great characters and great stories."[31] Later, in early February 2012, Disney completed its acquisition of UTV Software Communications, expanding their market further into India and Asia.[32]

On October 30, 2012, Disney announced plans to acquire Lucasfilm for $4.05 billion with plans to release Star Wars Episode VII in 2015.[33] On December 4, 2012, the Disney-Lucasfilm merger was approved by the Federal Trade Commission, allowing the acquisition to be finalized without dealing with antitrust problems.[34] On December 21, 2012, the deal was completed, and Lucasfilm became a wholly owned subsidiary of Disney.

Company divisions and subsidiaries

Main article: List of assets owned by Disney

The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme parks, cruise line, and other travel-related assets; Disney Consumer Products, which produces toys, clothing, and other merchandising based upon Disney-owned properties, Media Networks, which includes the company's television and Walt Disney Interactive Media Group, Internet, mobile, social media, virtual worlds and computer games operations.

Its main entertainment features and holdings include Walt Disney Studios, Disney Music Group, Disney Theatrical Group, Disney-ABC Television Group, Radio Disney, ESPN Inc., Disney Interactive Media Group, Disney Consumer Products, Disney India Ltd., The Muppets Studio, Pixar Animation Studios, Marvel Entertainment, UTV Software Communications, and Lucasfilm.

Its resorts and diversified holdings include Walt Disney Parks and Resorts, Disneyland Resort, Walt Disney World Resort, Tokyo Disney Resort, Disneyland Paris, Euro Disney S.C.A., Hong Kong Disneyland Resort, Disney Vacation Club and Disney Cruise Line.

Disney Media Networks

Disney Media Networks is a reporting segment and primary unit of The Walt Disney Company that contains the company's various television networks, cable channels, associated production and distribution companies and owned and operated television stations. Media Networks also manages Disney's interest in its joint venture with Hearst Corporation, A+E Networks and ESPN Inc..

  • Disney–ABC Television Group
    • Disney/ABC Television Group Digital Media
      • Walt Disney Television
      • Disney-ABC Domestic Television - formerly Buena Vista Television
      • Disney-ABC International Television - formerly Buena Vista International Television
      • ABC Television Network
      • ABC News
      • A+E Networks
    • ABC Entertainment Group
      • ABC Entertainment
      • ABC Studios - formerly Touchstone Television & ABC Television Studios
      • Times Square Studios (division)
    • ABC Family
      • ABC Spark - with Corus Entertainment
    • ABC Owned Television Stations Group
      • Live Well Network
      • ABC National Television Sales
      • ABC Regional Sports and Entertainment Sales[35]
    • Disney Channel Worldwide
      • Disney Cinemagic
      • Disney Junior
      • Disney XD
      • Hungama
      • Radio Disney
      • Disney Television Animation
    • Hyperion Books
      • ABC Daytime Press
      • ESPN Books
      • VOICE
  • ESPN Inc. (80%)

Executive management

Further information: List of management of The Walt Disney Company

Presidents

  • 1923–1966: Walt Disney
  • 1966–1971: Roy O. Disney
  • 1968–1972: Donn Tatum
  • 1971–1977: Card Walker
  • 1980–1984: Ron W. Miller
  • 1984–1994: Frank Wells
  • 1995–1997: Michael Ovitz
  • 2000–2012: Robert Iger

Chief Executive Officers

  • 1929–1971: Roy O. Disney
  • 1971–1976: Donn Tatum
  • 1976–1983: Card Walker
  • 1983–1984: Ron W. Miller
  • 1984–2005: Michael Eisner
  • 2005–present: Robert Iger

Chairmen of the Board

From 1945 to 1960 Walt and Roy Disney shared the role of Chairman of the Board. Walt dropped the Chairman title in 1960 so he could focus more on the creative aspects of the company. Roy O. Disney kept the Chairman and CEO's role.

  • 1945–1960: Walt Disney
  • 1945–1971: Roy O. Disney (Co-Chair 1945–1960)
  • 1971–1980: Donn Tatum
  • 1980–1983: Card Walker
  • 1983–1984: Raymond Watson
  • 1984–2004: Michael Eisner
  • 2004–2006: George J. Mitchell
  • 2007–2012: John E. Pepper, Jr.
  • 2012–present: Robert Iger

Vice Chairman of the Board

  • 1984–2003: Roy E. Disney
  • 1999–2000: Sanford Litvack (Co-Vice Chair)

Chief Operating Officers

  • 1984–1994: Frank Wells
  • 1997–1999: Sanford Litvack[36] (Acting Chief of Operations)
  • 2000–2005: Robert Iger

Financial data

Revenues

Annual gross revenues of The Walt Disney Company (in millions USD)
YearWalt Disney Studio Entertainment[Rev 1]Disney Consumer Products[Rev 2]Walt Disney
Parks and Resorts		Disney Media Networks[Rev 3]Walt Disney Internet Group / Disney Interactive Media Group[Rev 4][Rev 5]Total
1991[37]2,593.07242,794.0  6,111
1992[37]3,1151,0813,306  7,502
1993[37]3,673.41,415.13,440.7  8,529
1994[38][39][40]4,7931,798.23,463.6359 10,414
1995[38][39][40]6,001.52,1503,959.8414 12,525
1996[39][41]10,095[Rev 2]4,5024,142[Rev 6] 18,739
1997[42]6,9813,7825,0146,52217422,473
1998[42]6,8493,1935,5327,14226022,976
1999[42]6,5483,0306,1067,51220623,402
2000[43]5,9942,6026,8039,61536825,402
2001[44]7,0042,5906,0099,569 25,790
2002[44]6,4652,4406,6919,733 25,360
2003[45]7,3642,3446,41210,941 27,061
2004[45]8,7132,5117,75011,778 30,752
2005[46]7,5872,1279,02313,207 31,944
2006[46]7,5292,1939,92514,368 34,285
2007[47]7,4912,34710,62615,046 35,510
2008[48]7,3482,41511,50415,85771937,843
2009[49]6,1362,42510,66716,20971236,149
2010[50]6,7012,67810,76117,16276138,063
2011[51]6,3513,04911,79718,71498240,893
2012[52]5,8253,25212,92019,43684542,278
  1. ^ Also named Films
  2. ^ a b Merged into Creative Content in 1996
  3. ^ Broadcasting from 1994 to 1996
  4. ^ Walt Disney Internet Group, from 1997 to 2000, next merged with Disney Media Networks
  5. ^ Disney Interactive Media Group, starting in 2008 with the merge of WDIG and Disney Interactive Studios
  6. ^ Following the purchase of ABC

Net income

Net income of The Walt Disney Company (in millions USD)
YearWalt Disney Studio Entertainment[NI 1]Disney Consumer Products[NI 2]Walt Disney
Parks and Resorts		Disney Media Networks[NI 3]Walt Disney Internet Group[NI 4] / Disney Interactive Media Group[NI 5]Total
1991[37]318229546  1,094
1992[37]508283644  1,435
1993[37]622355746  1,724
1994[38][39]77942568477 1,965
1995[38][39]99851086076 2,445
1996[39]1,596[NI 2]990747−300[NI 6]3,033
1997[42]1,0798931,1361,699−564,312
1998[42]7698011,2881,746−943,231
1999[42]1166071,4461,611−933,231
2000[43]1104551,6202,298−4024,081
2001[44]2604011,5861,758 4,214
2002[44]2733941,169986 2,826
2003[45]6203849571,213 3,174
2004[45]6625341,1232 169 4,488
2005[46]2075431,1783,209 5,137
2006[46]7296181,5343,610 6,491
2007[47]1,2016311,7104,285 7,827
2008[48]1,0867781,8974,942−2588,445
2009[49]1756091,4184,765−2956,672
2010[50]6936771,3185,132−2347,586
2011[51]6188161,5536,146−3088,825
2012[52]7229371,9026,619−2169,964
  1. ^ Also named Films
  2. ^ a b Merged into Creative Content in 1996
  3. ^ Broadcasting from 1994 to 1996
  4. ^ Walt Disney Internet Group, from 1997 to 2000, next merged with Disney Media Networks
  5. ^ Disney Interactive Media Group, merge of WDIG and Disney Interactive Studios
  6. ^ Not linked to WDIG, Disney reported a $300M loss due to financial modification regarding real estate

Criticism

For more details on this topic, see Criticism of The Walt Disney Company.

Some of Disney's animated family films have drawn fire for being accused of having sexual references hidden in them, among them The Little Mermaid (1989), Aladdin (1992), and The Lion King (1994). Instances of sexual material hidden in some versions of The Rescuers (1977) and Who Framed Roger Rabbit (1988) resulted in recalls and modifications of the films to remove such content.[53]

Some religious welfare groups, such as the Catholic League, have opposed films including Priest (1994) and Dogma (1999).[54] A book called Growing Up Gay, published by Disney-owned Hyperion Press and similar publications, as well as the company's extension of benefits to same-sex domestic partners, spurred boycotts of Disney and its advertisers by the Catholic League, the Assemblies of God USA, the American Family Association, and other conservative groups.[54][55][56] The boycotts were discontinued by most of these organizations by 2005.[57] In addition to these social controversies, the company has been accused of human rights violations regarding the working conditions in factories that produce their merchandise.[58][59]

See also

Portal iconDisney portal
Portal iconAnimation portal
Portal iconFilm portal
Portal iconLos Angeles portal
Portal iconCompanies portal
  • Walt Disney
  • A Trip Through the Walt Disney Studios
  • Disney animated feature film source material
  • Disney Channel
  • Disney Junior
  • Disney University
  • Disney XD
  • Disneyfication
  • Disneynature
  • List of Walt Disney TV series
  • List of assets owned by Disney
  • List of channels owned by Disney
  • List of Disney animated characters
  • List of Disney animated shorts
  • List of Disney theatrical animated features
  • List of Disney theatrical feature films
  • List of Disney home entertainment
  • List of Disney live-action shorts
  • List of Disney video games by genre
  • Children's television series
  • Second screen apps from Disney
  • American Broadcasting Company

References

  1. ^ "Company History". Corporate Information. The Walt Disney Company. Retrieved August 30, 2008. 
  2. ^ a b c d e f "WDC 10-K 2012 Annual Report". The Walt Disney Company. 
  3. ^ Siklos, Richard (February 9, 2009). "Why Disney wants DreamWorks". CNN/Money. Retrieved February 9, 2009. 
  4. ^ a b c d e f g h i j k l m n o p q r s t u v w x y z aa ab ac ad ae af ag ah ai aj ak "The Walt Disney Company History". Company Profiles. fundinguniverse.com. Retrieved 6 November 2012. 
  5. ^ "Broadway Theater Broadway". The Shubert Organization. 1942-07-04. Retrieved 2012-10-31. 
  6. ^ Gabler, Neal (2007). Walt Disney: The Triumph of the American Imagination. New York: Random House. pp. 276–277. ISBN 0-679-75747-3. 
  7. ^ "Cinema: Man & Mouse". TIME. December 27, 1937. Retrieved May 17, 2010. 
  8. ^ "Walt Disney Goes to War". Life. August 31, 1942. p. 61. Retrieved November 20, 2011. 
  9. ^ "Chronology of the Walt Disney Company". islandnet.com. 
  10. ^ Broggie, Michael (1997). Walt Disney's Railroad Story. Pentrex. p. 174. ISBN 1563420090. 
  11. ^ Smith, Dave (1998). Disney A to Z - The Updated Official Encyclopedia. Hyperion Books. pp. 467, 601. ISBN 0786863919. 
  12. ^ Stewart, James (2005). Disney War. Simon & Schuster. p. 41. 
  13. ^ Gabler, Neal (2006). Walt Disney: The Triumph of the American Imagination. Knopf. p. 629. 
  14. ^ a b c d Harmetz, Aljean (April 10, 1980). "Disney working to expand market." Wilmington Morning Star. Retrieved November 7, 2012.
  15. ^ Peltz, James F. (October 2, 1990). "The Wonderful World of Disney's Other Firm : Entertainment: Walt Disney created a separate company for his family. Retlaw Enterprises Inc. is now worth hundreds of millions.". Los Angeles Times. Retrieved 19 July 2012. 
  16. ^ "BRIEFLY: E. F. Hutton raised $300 million for Disney.". Los Angeles Times. February 3, 1987. Retrieved July 18, 2012. 
  17. ^ a b "Disney, Japan Investors Join in Partnership : Movies: Group will become main source of finance for all live-action films at the company's three studios.". Los Angeles Times. Associated Press. October 23, 1990. Retrieved July 18, 2012. 
  18. ^ In re The Walt Disney Company Derivative Litigation, 907 A.2d 693 (Delaware Court of Chancery August 9, 2005).
  19. ^ O'Neill, Ann W. (September 28, 1997). "The Court Files: Mickey's Masters Killed Fellow Cartoon Critter, Judge Rules". Los Angeles Times. Retrieved 12 March 2013. 
  20. ^ Kohler, Chris (October 16, 2012). "How Videogames Are Changing Disney". Wied.com. Retrieved October 17, 2012. 
  21. ^ Holson, Laura M. (January 25, 2006). "Disney Agrees to Acquire Pixar in a $7.4 billion Deal". The New York Times. Retrieved January 17, 2010. 
  22. ^ a b "Pixar Becomes Unit of Disney". The New York Times & The Associated Press. May 6, 2006. Retrieved January 17, 2010. 
  23. ^ "Disney to acquire Marvel Entertainment for $4B". MarketWatch.com. Retrieved 2009-08-31. 
  24. ^ Donley, Michelle (December 31, 2009). "Marvel Shareholders OK Disney Acquisition". MarketWatch.com. 
  25. ^ Jay Cochran (August 31, 2009). "Disney Announces Acquisition of Marvel Entertainment Inc". enewsi.com. 
  26. ^ Chmielewski, Dawn C. (January 26, 2011). "Disney Interactive lays off 200 as video game unit shifts focus". Los Angeles Times. Retrieved October 17, 2012. 
  27. ^ Grego, Melissa (November 3, 2010). "EXCLUSIVE: Disney to Sell Two Stations". Broadcasting & Cable. Retrieved September 21, 2012. 
  28. ^ "The Disney Fairytale Has An Unhappy Ending," Sydney Morning Herald November 29, 2010.
  29. ^ Catmull, Ed (2010-11-21). "A headline in today’s LA Times erroneously reported...". The Walt Disney Company via Facebook. Retrieved 2010-12-14. 
  30. ^ Barboza, David; Barnes, Brooks (April 7, 2011). "Disney Plans Lavish Park in Shanghai". The New York Times. Archived from the original on June 27, 2011. Retrieved June 27, 2011. 
  31. ^ Bhasin, Kim (August 10, 2011). "Disney Is Looking To Buy Even More Stables Of Characters". Business Insider. Retrieved August 13, 2011. 
  32. ^ "Disney to complete UTV buyout". Filmbiz.asia. February 1, 2012. Retrieved February 8, 2012. 
  33. ^ Ingraham, Nathan (October 30, 2012). "Disney buys Lucasfilm, plans to release 'Star Wars: Episode 7' in 2015". The Verge. Retrieved October 30, 2012. 
  34. ^ Patten, Dominic (December 4, 2012). "Disney-Lucasfilm Deal Cleared By Feds". Deadline Hollywood. Retrieved December 5, 2012. 
  35. ^ "ABC Owned TV Stations". Corporate & Press Information. Disney | ABC Television Group. Retrieved 25 May 2012. 
  36. ^ "Antitrust expert Sanford Litvack to examine Google-Yahoo deal | Muckety – See the news". News.muckety.com. Retrieved December 10, 2011. 
  37. ^ a b c d e f "SEC Info – Disney Enterprises Inc – 10-K – For 9/30/93". secinfo.com. 
  38. ^ a b c d "Disney Annual Report 1995 – Financial Highlights". Corporate.disney.go.com. Retrieved 2012-10-31. 
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  40. ^ a b "Disney Enterprises Inc · 10-K · For 9/30/95". secinfo.com. 
  41. ^ "Walt Disney Co · 10-K405 · For 9/30/96". secinfo.com. 
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  44. ^ a b c d "Disney Annual Report 2002". corporate.disney.go.com. 
  45. ^ a b c d "Disney Annual Report 2004". corporate.disney.go.com. 
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  47. ^ a b "Disney Annual Report 2007 – Financial Highlights". corporate.disney.go.com. 
  48. ^ a b "Disney Factbook 2008 – Financial Information p. 50". amedia.disney.go.com. 
  49. ^ a b "Disney 2009 Annual Report – Business Segment Results". p. 31. 
  50. ^ a b "Disney 2010 Fourth quarter". p. 2. 
  51. ^ a b "THE WALT DISNEY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS FOR FISCAL 2011". p. 2. 
  52. ^ a b "THE WALT DISNEY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS FOR FISCAL 2012". p. 2. 
  53. ^ "Disney (Disney Films)". snopes.com. Retrieved July 15, 2009. 
  54. ^ a b "75 Organizations Asked To Join Showtime Boycott". Catalyst Online. Catholic League. May 29, 2001. Retrieved August 29, 2008. 
  55. ^ "Disney Boycott Expands". Catalyst. Catholic League. October 1996. Retrieved August 29, 2008. 
  56. ^ "Petitions and Boycott Stir Disney". Catalyst Online. Catholic League. October 1997. Retrieved August 29, 2008. 
  57. ^ "Southern Baptists end 8-year Disney boycott". MSNBC.com. June 22, 2005. Retrieved January 8, 2010. 
  58. ^ "Beware of Mickey: Disney's Sweatshop in South China". Centre for Research on Multinational Corporations. February 10, 2007. Archived from the original on February 10, 2007. Retrieved August 30, 2008. 
  59. ^ Staff writer (June 20, 2001). source "Disney's duds are tops in sweatshop labour, Oxfam". CBC.com. Retrieved August 30, 2008. 

Polsson, Ken. "Chronology of the Walt Disney Company". KPolsson.com. No URL on cite web

  1. ^ "1919-1924". 
  2. ^ a b "1926". 
  3. ^ a b c d e "1928". 
  4. ^ "1929". 
  5. ^ "Chronology of the Walt Disney Company". 
  6. ^ "1939". 
  7. ^ "1939". 
  8. ^ Polsson, Ken. "2003". Chronology of the Walt Disney Company. KPolsson.com. Retrieved 7 November 2012. 
  9. ^ "2004". 
  10. ^ "2005". 
  1. ^ Although Disney released a PG-rated film, Take Down, prior to the release of The Black Hole, they did not make the film; it was a pickup from independent producers.

Further reading

  • Building a Company: Roy O. Disney and the Creation of an Entertainment Empire, Bob Thomas, 1998
  • Building a Dream; The Art of Disney Architecture, Beth Dunlop, 1996, ISBN 0-8109-3142-7
  • Cult of the Mouse: Can We Stop Corporate Greed from Killing Innovation in America?, Henry M. Caroselli, 2004, Ten Speed Press
  • Disney: The Mouse Betrayed, Peter Schweizer
  • The Disney Touch: How a Daring Management Team Revived an Entertainment Empire, by Ron Grover (Richard D. Irwin, Inc., 1991), ISBN 1-55623-385-X
  • The Disney Version: The Life, Times, Art and Commerce of Walt Disney, Richard Schickel, 1968, revised 1997
  • Disneyana: Walt Disney Collectibles, Cecil Munsey, 1974
  • Disneyization of Society: Alan Bryman, 2004
  • DisneyWar, James B. Stewart, Simon & Schuster, 2005, ISBN 0-684-80993-1
  • Donald Duck Joins Up; the Walt Disney Studio During World War II, Richard Shale, 1982
  • How to Read Donald Duck: Imperialist Ideology in the Disney Comic ISBN 0-88477-023-0 (Marxist Critique) Ariel Dorfman, Armand Mattelart, David Kunzle (translator).
  • Inside the Dream: The Personal Story of Walt Disney, Katherine Greene & Richard Greene, 2001
  • The Keys to the Kingdom: How Michael Eisner Lost His Grip, Kim Masters (Morrow, 2000)
  • The Man Behind the Magic; the Story of Walt Disney, Katherine & Richard Greene, 1991, revised 1998, ISBN 0-7868-5350-6
  • Married to the Mouse, Richard E. Foglesorg, Yale University Press.
  • Mouse Tales: A Behind-the-Ears Look at Disneyland, David Koenig, 1994, revised 2005, ISBN 0-9640605-4-X
  • Mouse Tracks: The Story of Walt Disney Records, Tim Hollis and Greg Ehrbar, 2006, ISBN 1-57806-849-5
  • Storming the Magic Kingdom: Wall Street, the raiders, and the battle for Disney, John Taylor, 1987 New York Times
  • The Story of Walt Disney, Diane Disney Miller & Pete Martin, 1957
  • Team Rodent, Carl Hiaasen.
  • Walt Disney: An American Original, Bob Thomas, 1976, revised 1994, ISBN 0-671-22332-1
  • Work in Progress by Michael Eisner with Tony Schwartz (Random House, 1998), ISBN 978-0-375-50071-8

External links

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