Essay about Case Study
By Marc Gunther Reporter Associate Carol Vinzant
September 6, 1999
FORTUNE Magazine) – Michael Eisner, the famously hands-on CEO of Walt Disney, is up to his old tricks. Last night he screened a rough cut of Dinosaurs, Disney's big animated movie for next summer; he loved the story but complained that some jokes were stale. Today he's holding a four-hour brainstorming session about Mickey Mouse, looking for ways to keep the 71-year-old rodent relevant. (One idea: a skateboarding Mickey.) Later, he'll watch Peter Jennings' newscast on Disney-owned ABC and surf the Internet to see how the …show more content…
Besides, he declares, a bit impatiently: "We are the most profitable media company in the world. We're being buried a little prematurely here."
He's right about the bottom line. Last year Disney reported revenue of $23 billion, operating income of $4 billion, and net income of $1.9 billion--its net was far more than that of Time Warner (owner of FORTUNE's parent), News Corp., and Viacom combined. For the current fiscal year, which ends Sept. 30, Disney's revenue is expected to reach $24 billion. But all other key indicators are down, some shockingly so. For the first nine months of fiscal 1999, excluding a one-time gain from an asset sale, Disney reported declines in operating income of 17%, net income of 26%, and earnings per share of 27%. Some Wall Street analysts have cut their fiscal 1999 earnings estimates as many as five times since last summer, and 13 of 25 analysts have a "hold" on the stock, according to Zacks Investment Research. The company has simply stopped growing, and it isn't a