|
Disney studio boss quits
|
 |
January 12, 2000: 7:29 p.m. ET
Studio chief Roth's departure is the latest defection from the Magic Kingdom
|
NEW YORK (CNNfn) - Walt Disney Co. lost another top executive Wednesday when studio boss Joe Roth announced he is leaving the Magic Kingdom to form his own independent film outfit.
In a statement, Disney (DIS) said Roth will be replaced as Disney studio chairman by Peter Schneider, who has been the studio president for the last year. The change is effective Monday.
The announcement, the latest in a long series of high profile departures among Disney's top brass, precipitated a slide in the company's stock price, which closed at 33-11/16, down 2-9/16.
"I have loved working at Disney, both as an executive and a producer, for the past seven years, but feel that it is time for me to pursue a more entrepreneurial, independent life," Roth said.
Sources inside the company, however, say Roth had been unhappy because Chairman Michael Eisner publicly castigated him in a letter to shareholders for not producing sufficient profits.
"The filmed entertainment business has just gotten tough," said Jeffrey Logsdon, an analyst with The Seidler Companies in Los Angeles. "The returns are 4-, 5-, 6 percent." (155K WAV) (155K AIFF)
Fortune magazine looks at Disney's problems
Roth's impending resignation comes at the end of a record box-office year for Disney, during which the company racked $2.6 billion in ticket sales, making it the top film distributor worldwide.
The studio scored big twice in 1999, first with the release of "The Sixth Sense," which has taken in $276 million domestically, and later with "Toy Story 2," which has so far grossed $220 million.
"The Sixth Sense" was one of Disney's 1999 blockbusters.
It was the first time two films from the same distributor topped the $200 million mark in one year. The movies are second and third on Disney's all-time list, behind "The Lion King" with $312 million.
Disney Chairman Michael Eisner, in a statement, credited Roth for his leadership, and, in particular, for his ability to create winning action films. Among the $100-million-plus hits Roth was responsible are "Armageddon," "Enemy of the State" and "Ransom."
Both Roth and Eisner denied reports that the real reason for Roth's sudden departure was the animosity created between the two after Eisner publicly criticized Roth.
"I had not one inkling from Joe, ever, of discontent with the way we operate," Eisner told the Associated Press. "He and I operate very well together. We were totally on board as far as strategy."
Eisner added that he would like Roth to work with Disney on future film projects.
Besides Roth, Disney has lost several key executives in the last few years, including two former chief financial officers, Steve Bollenbach and Richard Nanula, ABC TV and radio station chief Steve Burke and cable programming boss Geraldine Laybourne.
Roth took over Disney studio operations in 1994 when then-boss Jeffrey Katzenberg left to form DreamWorks SKG in the most contentious of the high-level Disney departures of recent years.
Katzenberg later slapped Disney with a $250 million breach-of-contract suit. Katzenberg claimed a clause in his contract entitled him to receive 2 percent of income from films, TV shows and other products sold during his 10 years at the studio.
Disney also suffered a costly severance suit after top executive Michael Ovitz left in 1996.
Roth previously had been movie chairman at 20th Century Fox and also ran two independent film companies, Morgan Creek Productions and Caravan Productions.
Roth's replacement, Schneider, comes from Disney's animation shop and is credited with the success of many of Disney's recent animated hits including "The Little Mermaid," "Beauty and the Beast," "Mulan," and "The Lion King." 
-- from staff and wire reports
|
|
|
|
|
|
Disney.com
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
