CNBC’S David Faber is reporting that the fundraising effort by 70-year-old Michael Eisner, the former chairman/CEO of Walt Disney, kicked
off last week and is being led by JP Morgan. He wants to raise $800 million for a new film and television production company, says Faber quoting people who have been approached about investing. What’s sought is $400 million in equity in a private placement and place $400 million in debt financing. The Eisner led production company hopes to make four to five films a year and produce two to three scripted television shows, CNBC says according to people approached to invest. Faber says Eisner is expected to invest $20 million of his own funds in the new production company. Presently dabbling in Internet content through Tornante and the occasional television program, Eisner is unquestionably a shrewd and successful businessman. But, Faber, analyzes:
Despite that track record, JP Morgan could have a tough time raising $400 million in cash for the effort, while also syndicating a revolving line of credit for a like amount. First off, it’s a very big amount of money for a start-up production company even with Michael Eisner at its helm. It’s also not clear whether Eisner has signed a distribution deal with any of the major film studios or whether Eisner will receive producing fees on the films and movies separately from the company, a potential non-starter for investors.
Then there’s the fact that ‘FrankenEisner’ isn’t popular in Hollywood or on Wall Street anymore. When he finally left Disney in 2005 after a 21-year stint, it was with his tail between his legs after receiving a resounding 43% no confidence vote from shareholders a year earlier and losing the chairman title. Eisner also has a history of not telling the truth to his investors: many examples of this came out during the shareholders lawsuit against Disney because of Eisner’s hiring and firing of Michael Ovitz when attorneys compared his public statements about the company to his private memos detailing what was really happening. He also became infamous for putting together one of the most “insider” boards in corporate history while at Disney.
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And he’s 70+ years old in a business that caters to mostly to teens.
He should stick to TV then, a business that caters to middle-aged women who are only old enough to be his children, not his grandchildren.
Investing with Eisner is nuts. His days are over and he is certainly not going to raise this money. He should use his own money.
“Use his own money” … Fat chance…. Eisner still owes me 20 buck from a Super Bowl bet he lost to me in 1979! He is the cheapest billionaire on Wall Street.
Whether it’s from FrankenEisner or not, it’s still one more buyer…
I totally agree. People can bitch about his personality all they want, but in these troubled times I doubt anyone would complain about having one more buyer in town.
Only 20 million of his own money? That means it’s a lousy risky investment. If he really believed in this he’d put in 200 million of his own money. He’s worth at least a billion and probably more.
Never get high on your own supply.
Never sh!t where you eat.
Never invest your own $ in a film or prod. co.
I hope he comes back and comes back big.
The Man is brilliant, period.
A living legend with experience, acumen, and achievement under his belt that is simply peerless.
He knows how to run a lean ship with minimal middle-men clogging up the process, and that’s likely what this new venture will be. This industry needs more such entities, lest it shrivel and die.
Michael Eisner will take bold shots because he is not in any way motivated by fear, as are most industry executives. Hopefully this venture will come together.
Hey Matt,
You have the most droll, facetious and subtle wit to make us actually believe that you believe what you have just stated…or, you are a relative or hopeful future Eisner employee.
They didn’t call it ‘Mouseschwitz’ for nothing.
he was brilliant… until Frank Wells died.
Who would invest that kind of money on a 70 year old? I guess it’s the same people who ask the advice of brokers.. aka morons.
Rupert is 81.
And look how well things are going for him.
He created billions of dollars in value during his 20 years at Disney, and bought ABC and ESPN–two of the savviest investments in media history. He enabled Pixar to blossom into a studio. But he needs to bring some serious executive talent into this company–people who are liked and respected. I would not bet against Eisner.
Betting against Eisner is not the question. The question is would you bankroll him?
He let Pixar blossom then pissed Steve Jobs off so bad that Jobs was looking for another distributor for Pixar, Eisner left then Iger patched things up with Steve Jobs and BOUGHT Pixar now Iger sits on the board of Apple. Iger push Disney into the “new age” of digital with Apple.
Eisner was good in the beginning then a disaster in his later years. As a Disney stockholder now and for many years I wouldn’t invest in anything Eisner did now.
Good luck getting the funding Eisner. After the way he almost ruined Walt Disney Company, can’t see anyone that stupid enough to want to invest in his new ventures. He’s a delusional man.
If I have his money at that age and I still want to open a movie production company please institutionalize me or shoot me and put me out of my misery.
whats with the hat?
Does anyone in Hollywood RETIRE?
They used to. Now the money is too good. Imagine being a pro athlete from the 80′s making several hundred K and knowing that you can actually come back now and make 20 mil like all the new guys. It’s why guys like Stallone and Willis agreed to come back and drag their old franchises through the mud a few more times.
You know, aside from his keen understanding of quality filmmaking, Michael here displays the brooding, soulful insouciance of a Bogart or perhaps…hahahahahahahahahahaaa
The Devil is waiting, Mike. So Long