Premature Departation
In a letter delivered to the Board of The Walt Disney Company on Thursday evening, Michael Eisner officially acknowledged his intention not to seek a new term as CEO after his contract expires in 2006. Presumably intended as part of an end of fiscal year review letter (he has just completed TWENTY years in office, Eisner aluded to the trials and tribulations of the last year or so which found Disney battling against reduced tourism, a middling economy and a foundering network as well as former dissident Board member and company namesake brother (Roy E. Disney).
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By delivering this announcement two years in advance of the turnover, and having publicly stated that Bob Iger would make a strong successor, Eisner is apparently seeking to create a smooth transition and a way for Disney to progress and grow, though he will have to navigate two years as a lame duck. Major shareholder CalPERS issued a statement to that point.
This news brings about interesting possiblities in Disney's talks with Pixar (perhaps back on?) and the Weinsteins.
The letter was released by Disney as an 8-K filing with the SEC. Expect widespread commentary and analysis to follow: ABC Online, Variety, E! Online, Washington Post, Wall Street Journal (subscription required), and The New York Times.
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