Thursday, April 10, 2014

The Epic Disney Blow-Up of 1994: Eisner, Katzenberg and Ovitz 20 Years Later


For some time -- encouraged by his friend and mentor, Geffen -- Katzenberg had been pushing hard for a promotion. He was after a bigger title and wanted Disney to buy a television network. At the time, Eisner didn't like the prices. (He would make a deal to buy Capital Cities/ABC in 1995, the year after he'd dismissed Katzenberg.) A momentous conversation took place in October 1993, when the two were strolling the streets of Aspen, Colo. Katzenberg pressed Eisner to make him president of the company, with Wells becoming vice chairman. Eisner replied that Wells would feel "hurt" in that scenario and then, according to Katzenberg, assured him, "If for any reason Frank is not here … you are the number-two person and I want you to have the job." (Eisner later called that conversation a "misunderstanding.")

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