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Back to Disney: The Renaissance and the Empire.

Why Was Disney Worth More Dead Than Alive in 1984?

Ben Gilbert and David Rosenthal say Disney in 1983 was worth more sold for parts than run as a company. The stock had dropped from $82 to $52, corporate raiders were circling, and the only defense was to find a raider of their own.

Management struck friendly deals with the Bass family, four oil, gas, and real estate brothers from Fort Worth, and their investment manager Richard Rainwater. The Bass family ended up owning about 25% of the Walt Disney Company, more than the remaining branches of the Disney family. New shares diluted everyone else, and that was still the best way to fend the raiders off.

The creative engine was already broken. In 1984 nearly every dollar of profit came from the parks and consumer products: a quarter billion dollars there, and a mere two million from film and TV.

Transcript

Disney: The Renaissance and the Empire ·

Acquired

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  18. Why Did Bob Iger Lose Faith in Disney Animation?Ben Gilbert says Bob Iger, during his CEO audition process, had completely lost faith that Disney animation can be fixed from within.
  19. Why Did George Lucas Sell the Group That Became Pixar?Ben Gilbert and David Rosenthal say George Lucas sold the graphics group because he was getting divorced and needed cash.
  20. Why Do Toy Story Animators Move the Body First?Ben Gilbert says Toy Story animators work frame by frame on the bodies first and only later on the faces.
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