The Walt Disney Company

{{Infobox company | company_name = The Walt Disney Company | company_logo = | company_type = Public ()
Dow Jones Industrial Average Component | foundation = Los Angeles, California, U.S..
(October 16, 1923) | founder = Walt and Roy Disney | location_city = Burbank, California, U.S. |area_served = Worldwide | key_people = Robert Iger
(President & CEO)
John E. Pepper, Jr.
(Chairman)
Steve Jobs
(Shareholder & Board Member)
Anne Sweeney
(President, Disney-ABC Television Group; Co-Chair, Disney Media Networks) | num_employees = 150,000 (2008) | market cap = US$ 34.95 billion (February 12, 2009) | industry = Conglomerate | revenue = US$38.0 Billion (FY 2010) | operating_income = US$5.78 Billion (FY 2010) | equity = US$33.7 Billion (FY 2010) Founded on October 16, 1923, by brothers Walt Disney and Roy Disney as the Disney Brothers Cartoon Studio, the company was reincorporated as Walt Disney Productions, Ltd. in 1929, and became publicity-traded as Walt Disney Productions in 1938. Walt Disney Productions established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. Taking on its current name in 1986, The Walt Disney Company expanded its existing operations and also started divisions focused upon theatre, radio, publishing, and online media. In addition, it has created new divisions of the company in order to market more mature content than it typically associates with its flagship family-oriented brands.

The company is best known for the products of its film studio, the Walt Disney Motion Pictures Group, today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 11 theme parks around the world. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. An early and well-known cartoon creation of the company, Mickey Mouse, is the official mascot of The Walt Disney Company.

Corporate history

1923–28: The silent era

In early 1923, Kansas City, Missouri animator Walt Disney created a short film entitled Alice's Wonderland, which featured child actress Virginia Davis interacting with animated characters. Film distributor Margaret J. Winkler contacted Disney with plans to distribute a whole series of Alice Comedies based upon Alice's Wonderland. The contract signed, Walt and his brother Roy Disney moved to Los Angeles, California. On October 16, 1923, they officially set up shop in their uncle Robert Disney's garage, marking the beginning of the Disney Brothers Cartoon Studio. Within a few months, the company moved into the back of a realty office in downtown Los Angeles, where production continued on the Alice Comedies until 1927. In 1926, the studio moved to a newly constructed studio facility on Hyperion Avenue in the Silver Lake district of Los Angeles. Disney used Pat Powers' Cinephone system, created by Powers using Lee De Forest's Phonofilm system. Steamboat Willie premiered at B. S. Moss's Colony Theater in New York City, now The Broadway Theatre.

Disney continued to produce cartoons with Mickey Mouse and other characters, and began the Silly Symphonies series, which was advertised as "Mickey Mouse Presents a Walt Disney Silly Symphony". In 1932, Disney signed an exclusive contract with Technicolor (through the end of 1935) to produce cartoons in color, beginning with Flowers and Trees (1932). Disney released cartoons through Powers' Celebrity Pictures (1928–1930), Columbia Pictures (1930–1932), and United Artists (1932–1937). The popularity of the Mickey Mouse series and the Silly Symphony series allowed Disney to plan for his first feature-length animation.

1934–45: Snow White and the Seven Dwarfs and World War II

given to Walt Disney for Snow White and the Seven Dwarfs.]] Deciding to push the boundaries of animation even further, Disney began production of his first feature-length animated film in 1934. Taking three years to complete, Snow White and the Seven Dwarfs, based upon the Grimm Brothers' fairy tale, premiered in December 1937 and became the highest-grossing film of that time by 1939. Snow White was released through RKO Radio Pictures, which had assumed distribution of Disney's product in July 1937, after United Artists attempted to attain future television rights to the Disney shorts.

Using the profits from Snow White, Disney financed the construction of a new studio complex in Burbank, California. The new Walt Disney Studios, in which the company is headquartered to this day, was completed and open for business by the end of 1939. The following year, Walt Disney Productions had its initial public offering.

The studio continued releasing animated shorts and features, such as Pinocchio (1940), Fantasia (1940), Dumbo (1941), and Bambi (1942). With the onset of World War II, box-office profits began to dry up. When the United States entered the war after the attack on Pearl Harbor, many of Disney's animators were drafted into the armed forces, and the studio itself was temporarily commandeered by the U.S. military. The U.S. government commissioned the studio to produce training and propaganda films, which provided Disney with needed funds. Films such as the feature Victory Through Air Power and the short Education for Death (both 1943) were meant to galvanize public support for the war effort. Even the studio's characters joined the effort, as Donald Duck appeared in a number of comical propaganda shorts, including the Academy Award-winning Der Fuehrer's Face (1943).

1946–54: Post-war and television

With limited staff and little operating capital during and after the war, Disney's feature films during much of the 1940s were "package films," or collections of shorts, such as The Three Caballeros (1944) and Melody Time (1948), which performed poorly at the box-office. At the same time, the studio began producing live-action films and documentaries. Song of the South (1946) and So Dear to My Heart (1948) featured animated segments, while the True-Life Adventures series, which included such films as Seal Island (1948) and The Vanishing Prairie (1954), were also popular and won numerous awards.

The release of Cinderella in 1950 proved that feature-length animation could still succeed in the marketplace. Other releases of the period included Alice in Wonderland (1951) and Peter Pan (1953), both in production before the war began, and Disney's first all-live action feature, Treasure Island (1950). Other early all-live-action Disney films included The Story of Robin Hood and His Merrie Men (1952),The Sword and the Rose (1953), and 20,000 Leagues Under the Sea (1954). Disney ended its distribution contract with RKO in 1953, forming its own distribution arm, Buena Vista Distribution. Disneyland allowed Disney a platform to introduce new projects and broadcast older ones, and ABC became Disney's partner in the financing and development of Disney's next venture, located in the middle of an orange grove near Anaheim, California.

1955–65: Disneyland

, July 1955.]] In 1954, Walt Disney used his Disneyland series to unveil what would become Disneyland Park, an idea conceived out of a desire for a place where parents and children could both have fun at the same time. On July 18, 1955, Walt Disney opened Disneyland to the general public. On July 17, 1955 Disneyland was previewed with a live television broadcast hosted by Art Linkletter and Ronald Reagan. After a shaky start, Disneyland continued to grow and attract visitors from across the country and around the world. A major expansion in 1959 included the addition of America's first monorail system.

For the 1964 New York World's Fair, Disney prepared four separate attractions for various sponsors, each of which would find its way to Disneyland in one form or another. During this time, Walt Disney was also secretly scouting out new sites for a second Disney theme park. In November 1965, "Disney World" was announced, with plans for theme parks, hotels, and even a model city on thousands of acres of land purchased outside of Orlando, Florida.

Disney continued to focus its talents on television throughout the 1950s. Its weekday afternoon children's program The Mickey Mouse Club, featuring its roster of young "Mouseketeers", premiered in 1955 to great success, as did the Davy Crockett miniseries, starring Fess Parker and broadcast on the Disneyland anthology show. Two years later, the Zorro series would prove just as popular, running for two seasons on ABC, as well as separate episodes on the Disneyland series. Despite such success, Walt Disney Productions invested little into television ventures in the 1960s, with the exception of the long-running anthology series, later known as The Wonderful World of Disney.

Disney's film studios stayed busy as well, averaging five to six releases per year during this period. While the production of shorts slowed significantly during the 1950s and 1960s, the studio released a number of popular animated features, like Lady and the Tramp (1955), Sleeping Beauty (1959) and One Hundred and One Dalmatians (1961), which introduced a new xerography process to transfer the drawings to animation cels. Disney's live-action releases were spread across a number of genres, including historical fiction (Johnny Tremain, 1957), adaptations of children's books (Pollyanna, 1960) and modern-day comedies (The Shaggy Dog 1959). Disney's most successful film of the 1960s was a live action/animated musical adaptation of Mary Poppins, which received five Academy Awards, including Best Actress Julie Andrews.

1966–71: The deaths of Walt and Roy Disney and the opening of Walt Disney World

On December 15, 1966, Walt Disney died of lung cancer, and Roy Disney took over as chairman, CEO, and president of the company. One of his first acts was to rename Disney World as "Walt Disney World," in honor of his brother and his vision.

In 1967, the last two films Walt actively followed were released: the animated feature The Jungle Book and the musical The Happiest Millionaire. The studio released a number of comedies in the late 1960s, including The Love Bug (1968) and The Computer Wore Tennis Shoes (1969), which starred another young Disney discovery, Kurt Russell. The 1970s opened with the release of Disney's first "post-Walt" animated feature, The Aristocats, followed by a return to fantasy musicals in 1971's Bedknobs and Broomsticks.

On October 1, 1971, Walt Disney World opened to the public, with Roy Disney dedicating the facility in person later that month. Two months later, on December 20, 1971, Roy Disney died of a stroke, leaving the company under control of Donn Tatum, Card Walker, and Walt's son-in-law Ron Miller, each trained by Walt and Roy.

1972–84: Theatrical malaise and new leadership

While Walt Disney Productions continued releasing family-friendly films throughout the 1970s, such as Escape to Witch Mountain (1975) and Freaky Friday (1976), the films did not fare as well at the box office as earlier material. The animation studio, however, saw success with Robin Hood (1973), The Rescuers (1977), and The Fox and the Hound (1981).

Inspired by the popularity of Star Wars, the Disney studio produced the science-fiction adventure The Black Hole in 1979.The Black Hole was one of the first Disney releases to carry a PG rating, the first being Take Down, also released in 1979. The releases of these and other PG-rated Disney films such as the boldly innovative Tron (1982) led Disney CEO Ron Miller to create Touchstone Pictures as a brand for Disney to release more adult-oriented material. Touchstone's first release was the comedy Splash (1984), which was a box office success.

With The Wonderful World of Disney remaining a prime-time staple, Disney returned to television in the 1970s with syndicated programing such as the anthology series The Mouse Factory and a brief revival of the Mickey Mouse Club. In 1980, Disney launched Walt Disney Home Video to take advantage of the newly-emerging videocassette market. On April 18, 1983, The Disney Channel debuted as a subscription-level channel on cable systems nationwide, featuring its large library of classic films and TV series, along with original programming and family-friendly third-party offerings.

Walt Disney World received much of the company's attention through the 1970s and into the 1980s. In 1978, Disney executives announced plans for the second Walt Disney World theme park, EPCOT Center, which would open in October 1982. Inspired by Walt Disney's dream of a futuristic model city, EPCOT Center was built as a "permanent World's Fair", complete with exhibits sponsored by major American corporations, as well as pavilions based on the cultures of other nations. In Japan, the Oriental Land Company partnered with Walt Disney Productions to build the first Disney theme park outside of the United States, Tokyo Disneyland, which opened in April 1983.

Despite the success of the Disney Channel and its new theme park creations, Walt Disney Productions was financially vulnerable. Its film library was valuable, but offered few current successes, and its leadership team was unable to keep up with other studios, particularly the works of Don Bluth, who defected from Disney in 1979. In 1984, financier Saul Steinberg launched a hostile takeover bid for Walt Disney Productions, with the intent of selling off its various assets. Disney successfully fought off the bid with the help of friendly investors, and Sid Bass and Roy Disney's son Roy Edward Disney brought in Michael Eisner and Jeffrey Katzenberg from Paramount Pictures and Frank Wells from Warner Bros. to head up the company.

1984–2004: The Eisner era

:See also, 1984-2004 under Timeline of The Walt Disney Company. Since Walt's death in 1966, The Walt Disney Company had narrowly survived takeover attempts by corporate raiders. Its shareholders Sid Bass and Roy E. Disney brought on Eisner and former Warner Brothers chief Frank Wells to replace Ron W. Miller in 1984 and strengthen the company.

During the second half of the 1980s and early 1990s, Disney revitalized. Beginning with Who Framed Roger Rabbit (1988), and later, The Little Mermaid (1989), its flagship animation studio enjoyed a series of commercial and critical successes. Disney also broadened its adult offerings in film when then Disney Studio Chairman Jeffrey Katzenberg acquired Miramax Films in 1993. Disney acquired many other media sources, including ABC and ESPN.

During the early part of the 1990s, Eisner and his partners set out to plan "The Disney Decade" which was to feature new parks around the world, existing park expansions, new films, and new media investments. While some of the proposals did follow through, most did not. These included the Euro Disney Resort (now Disneyland Paris), Disney-MGM Studios (now Disney's Hollywood Studios), Disney's California Adventure Park, Disney-MGM Studios Paris (eventually opened in 2002 as Walt Disney Studios Park), and various film projects including a Who Framed Roger Rabbit franchise.

Wells died in a helicopter crash in 1994 (The Lion King, which went on to become the most successful hand-drawn animated picture of all time, was dedicated to his memory). Shortly thereafter, Katzenberg resigned and formed Dreamworks SKG with partners Steven Spielberg and David Geffen because Eisner would not appoint Katzenberg to Wells' now-available post. Instead, Eisner recruited his friend Michael Ovitz, one of the founders of the Creative Artists Agency, to be President, with minimal involvement from Disney's board of directors (which at the time included Oscar-winning actor Sidney Poitier, the CEO of Hilton Hotels Corporation Stephen Bollenbach, former U.S. Senator George Mitchell, Yale dean Robert A. M. Stern, and Eisner's predecessors Raymond Watson and Card Walker). Ovitz lasted only 14 months and left Disney in December 1996 via a "no fault termination" with a severance package of $38 million in cash and 3 million stock options worth roughly $100 million at the time of Ovitz's departure. The Ovitz episode engendered a long running derivative suit, which finally concluded in June 2006, almost 10 years later. Chancellor William B. Chandler, III of the Delaware Court of Chancery, despite describing Eisner's behavior as falling "far short of what shareholders expect and demand from those entrusted with a fiduciary position..." found in favor of Eisner and the rest of the Disney board because they hadn't violated the letter of the law (namely, the duty of care owed by a corporation's officers and board to its shareholders).

"Save Disney" campaign and Eisner's ouster

In 2003, Roy E. Disney, the son of Disney co-founder Roy O. Disney and nephew of Walt Disney, resigned from his positions as the company's vice chairman and chairman of Walt Disney Feature Animation, accusing Eisner of micromanagement, flops with the ABC television network, timidity in the theme park business, turning the Walt Disney Company into a "rapacious, soul-less" company, and refusing to establish a clear succession plan, as well as a string of box-office movie flops starting in the year 2000.

On March 3, 2004, at Disney's annual shareholders' meeting, a surprising and unprecedented 43% of Disney's shareholders, predominantly rallied by former board members Roy Disney and Stanley Gold, withheld their proxies to re-elect Eisner to the board. Disney's board then gave the chairmanship position to Mitchell. However, the board did not immediately remove Eisner as chief executive.

On March 13, 2005, Eisner announced that he would step down as CEO one year before his contract expired. On September 30, Eisner resigned both as an executive and as a member of the board of directors, and, severing all formal ties with the company, he waived his contractual rights to perks such as the use of a corporate jet and an office at the company's Burbank headquarters. Eisner's replacement was his longtime assistant, Robert Iger.

2005–present

On July 8, 2005, Walt Disney's nephew, Roy E. Disney returned to The Walt Disney Company as a consultant and with the new title of Non Voting Director, Emeritus. Walt Disney Parks and Resorts celebrated the 50th Anniversary of Disneyland Park on July 17, and opened Hong Kong Disneyland on September 12. Walt Disney Feature Animation released Chicken Little, the company's first film using 3-D animation. On October 1, Robert Iger replaced Michael Eisner as CEO. Miramax co-founders Bob Weinstein and Harvey Weinstein also departed the company to form their own studio.

Aware that Disney's relationship with Pixar was wearing thin, President and CEO Robert Iger began negotiations with leadership of Pixar Animation Studios, Steve Jobs and Ed Catmull, regarding possible merger. On January 23, 2006, it was announced that Disney would purchase Pixar in an all-stock transaction worth $7.4 billion. The deal was finalized on May 5, and made Apple CEO Steve Jobs Disney's largest individual shareholder at 7% and a Director of the company. Ed Catmull and John Lasseter became President of Walt Disney and Pixar Animation Studios.

After a long time working in the company as a senior executive and large shareholder, Director Emeritus Roy E. Disney died from stomach cancer on December 16, 2009. At the time of his death, he had roughly 1% of all Disney shares which amounted to 16 million. He is seen to be the last member of the Disney family to be actively involved in the running of the company and working in the company altogether.

On December 31, 2009, Disney acquired Marvel Entertainment, Inc. for $4.24 billion. Disney has stated that their acquisition of the company will not affect Marvel's products, neither will the nature of any Marvel characters be transformed.

In October 2009, Disney Channel president Rich Ross, hired by Iger, replaced Dick Cook as chairman of the company and, in November, began restructuring the company to focus more on family friendly products. Later in January 2010, Disney decided to shut down Miramax after downsizing Touchstone, but one month later, they began selling the Miramax brand and its 700-title film library. On March 12, , Robert Zemeckis's company which Disney had bought in 2007, was shut down. In April 2010, Lyric Street, Disney's country music label in Nashville, was shut down. In May 2010, the company sold the Power Rangers brand, as well as its 700-episode library, back to Haim Saban. In June, the company canceled Jerry Bruckheimer's film project Killing Rommel. In September 2010, Disney Interactive Studios was downsized. In November, two ABC stations were sold.

With the release of Tangled in 2010, Ed Catmull said that the "princess" genre of films was taking a hiatus until, "someone has a fresh take on it … but we don't have any other musicals or fairytales lined up." He explained that they were looking to get away from the princess era due to the changes in audience composition and preference.

Company divisions

The Walt Disney Company operates as four primary divisions: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme parks, cruise line, and other travel-related assets; Disney Consumer Products, which produces toys, clothing, and other merchandising based upon Disney-owned properties, and Media Networks, which includes the company's television and Internet operations.

Its main entertainment features and holdings include Walt Disney Motion Pictures Group, Disney Music Group, Walt Disney Theatrical, Disney-ABC Television Group, Radio Disney, ESPN Inc., Disney Interactive Media Group, Disney Consumer Products, and Marvel Entertainment. Its resorts and diversified holdings include Walt Disney Parks and Resorts, Disneyland Resort, Walt Disney World Resort, Tokyo Disney Resort, Disneyland Paris, Euro Disney S.C.A., Hong Kong Disneyland Resort, Disney Vacation Club and Disney Cruise Line.

Executive management

Financial data

Revenues

!style="width:150px"| Disney Consumer Products !style="width:150px"| Walt Disney
Parks and Resorts !style="width:150px"| Disney Media Networks !style="width:150px"| Walt Disney Internet Group / Disney Interactive Media Group !style="width:75px"| Total |- ! scope=row | 1991 | 3,035 |- ! scope=row | 1997

Some religious welfare groups, such as the Catholic League, have opposed films including Priest (1994) and Dogma (1999). The boycotts were discontinued by most of these organizations by 2005. In addition to these social controversies, the company has been accused of human rights violations regarding the working conditions in factories that produce their merchandise.

Full acquisitions

1993 – Miramax Films¹

1995 – DiC²

1996 – Capital Cities/ABC, Jumbo Pictures

2001 – Fox Family Worldwide, Saban Entertainment

2004 – Ownership and material of The Muppets³ and Bear in the Big Blue House

2006 – Pixar Animation Studios, ownership of Oswald the Lucky Rabbit and the 26 Disney-produced cartoons⁴

2007 – New Horizon Interactive, ⁵

2009 – Marvel Entertainment

2010 – Tapulous Inc., Playdom

¹ Miramax was sold to Filmyard Holdings, LLC in 2010.

² DiC was sold back to Andy Heyward on November 17, 2000, and on July 23, 2008, Cookie Jar Group merged with DiC.

³ Excludes The Muppets Take Manhattan, Muppets from Space, and Kermit's Swamp Years, which are owned by Sony Pictures, and It's a Very Merry Muppet Christmas Movie, which is owned by NBC Universal. Jim Henson Productions, creators of The Muppets, remained owners of Fraggle Rock. Sesame Street's Muppets were sold to the nonprofit Sesame Workshop in 2001.

⁴ Excludes the Winkler Productions and Walter Lantz Oswald cartoons, which are still owned by NBC Universal.

⁵ Name changed to after Disney's acquisition; plans to shut down in 2011.

See also

A Trip Through the Walt Disney Studios

Disney animated feature film source material

Disney Channel

Disney University

Disneyfication

List of assets owned by Disney

List of Disney animated characters

List of Disney animated shorts

List of Disney theatrical animated features

List of Disney feature films

List of Disney live-action shorts

List of Disney home entertainment

List of Disney television series

List of Disney video games by genre

Walt Disney

References

Further reading

Building a Company: Roy O. Disney and the Creation of an Entertainment Empire, Bob Thomas, 1998

Building a Dream; The Art of Disney Architecture, Beth Dunlop, 1996, ISBN 0-8109-3142-7

Cult of the Mouse: Can We Stop Corporate Greed from Killing Innovation in America?, Henry M. Caroselli, 2004, Ten Speed Press

Disney: The Mouse Betrayed, Peter Schweizer

The Disney Touch: How a Daring Management Team Revived an Entertainment Empire, by Ron Grover (Richard D. Irwin, Inc., 1991), ISBN 1-55623-385-X

The Disney Version: The Life, Times, Art and Commerce of Walt Disney, Richard Schickel, 1968, revised 1997

Disneyana: Walt Disney Collectibles, Cecil Munsey, 1974

Disneyization of Society: Alan Bryman, 2004

DisneyWar, James B. Stewart, Simon & Schuster, 2005, ISBN 0-684-80993-1

Donald Duck Joins Up; the Walt Disney Studio During World War II, Richard Shale, 1982

How to Read Donald Duck: Imperialist Ideology in the Disney Comic ISBN 0-88477-023-0 (Marxist Critique) Ariel Dorfman, Armand Mattelart, David Kunzle (translator).

Inside the Dream: The Personal Story of Walt Disney, Katherine Greene & Richard Greene, 2001

The Keys to the Kingdom: How Michael Eisner Lost His Grip, Kim Masters (Morrow, 2000)

The Man Behind the Magic; the Story of Walt Disney, Katherine & Richard Greene, 1991, revised 1998, ISBN 0-7868-5350-6

Married to the Mouse, Richard E. Foglesorg, Yale University Press.

Mouse Tales: A Behind-the-Ears Look at Disneyland, David Koenig, 1994, revised 2005, ISBN 0-9640605-4-X

Mouse Tracks: The Story of Walt Disney Records, Tim Hollis and Greg Ehrbar, 2006, ISBN 1-57806-849-5

Storming the Magic Kingdom: Wall Street, the raiders, and the battle for Disney, John Taylor, 1987 New York Times

The Story of Walt Disney, Diane Disney Miller & Pete Martin, 1957

Team Rodent, Carl Hiassen.

Walt Disney: An American Original, Bob Thomas, 1976, revised 1994, ISBN 0671223321

Work in Progress by Michael Eisner with Tony Schwartz (Random House, 1998), ISBN 978-0375500718

External links

Disney mobile website

Category:Amusement park companies Category:Burbank, California Category:Companies based in Los Angeles County, California Category:Companies established in 1923 Category:Dow Jones Industrial Average Category:Entertainment companies of the United States Category:Irish American history Category:Media companies of the United States