Where this was said
Disney in Chaos (1984)
At 11:00 · chapter starts 5:07
The episode proper begins at ground zero: 1984, a year of compounding crises for the Walt Disney Company. Disney's stock had collapsed from $82 to $52, and by every financial measure the company was worth more dead than alive — corporate raiders held live offers to sell the film library (Snow White, Cinderella, Sleeping Beauty) to MGM and the parks to hotel operators. [1] — Ben Gilbert "Disney worth more dead than alive: In 1984, Disney's stock dropped from $82 to $52 and the company was worth more if broken up and sold for…" 07:07 Internal family drama was rampant, with Roy E. Disney's son Roy E. having resigned from the board and scheming to oust Walt's son-in-law Ron Miller as CEO. The only defensive move management could execute was a dilutive deal with the Bass family of Fort Worth, Texas — oil and gas money managed by Richard Rainwater — granting them 25% of the company to serve as a pseudo-controlling shareholder bulwark against the raiders. Meanwhile, the creative core was effectively dead: in 1984, Disney generated $250 million in profit from parks and consumer products and a mere $2 million from film and TV. [2] — Ben Gilbert "$2M from film vs $250M from parks (1984): In 1984, Disney generated $250 million in profit from parks and consumer products but only $2 mil…" 08:13 The famous flywheel was completely broken. But in a small basement classroom at CalArts — the school Walt himself had funded in his will — John Lasseter, Brad Bird, Tim Burton, Andrew Stanton, and Pete Docter were being trained in animation, waiting for their moment.
In 1984, Disney's stock had crashed from $82 to $52 and the company was worth more if sold for parts than kept running. Corporate raiders had live offers to sell the film library to MGM and the parks to hotel operators. The only defense was to dilute shareholders by handing 25% of the company to Texas oil money.
In 1984, Disney's stock dropped from $82 to $52 and the company was worth more if broken up and sold for parts than as a going concern.
In 1984, Disney generated $250 million in profit from parks and consumer products but only $2 million from film and TV — its creative core was essentially broken.
While Disney was imploding, the entire future of animation was sitting in a basement classroom at CalArts — the school Walt Disney himself funded in his will. John Lasseter, Brad Bird, Tim Burton, and future Pixar leaders were all trained there, hired by Disney, then fired or driven out, only to return and save the company.
In 14 days in September 1984, Disney went from leaderless chaos to hiring arguably the greatest management duo in media history. Frank Wells was available from retirement at Warner Brothers. Michael Eisner had just been passed over at Paramount. Their deal structure — Eisner as chairman, Wells as president, both reporting to the board — would hold the company together for a decade.
