REVIEW
Nov. 27 – Dec. 4
Disney Drama: Walt Disney Co. board member Roy Disney (photo), nephew of the company founder and an outspoken critic of the recent performance by Chief Executive Michael Eisner, resigned and said in a letter that the Burbank-based entertainment company had “lost its focus.” The day after Disney’s resignation, Stanley Gold, another board member and ally of Roy Disney, submitted his resignation. While the resignations free both men to speak out against what they say is poor management, analysts doubted whether the departures would have much effect, given the company’s improved performance and rising stock price. Disney’s board had said it would enforce an age limit of 72 for directors, disqualifying Roy Disney, 73, and two other directors.
More Disney: Thanks to hits including “Finding Nemo” and “Pirates of the Caribbean: The Curse of the Black Pearl,” Walt Disney Co.’s movie studio will reach an industry-record $3 billion in box office. The total tops the previous high of $2.86 billion set by Sony Pictures last year. The total includes both domestic and international ticket sales.
Network Deals: ABC and MindShare North America, a media agency and unit of WPP Group, announced plans to develop and produce television shows aimed at family viewing and featuring product placements and similar sponsored elements. Later in the week, ABC also announced a deal with Sears, Roebuck & Co. in which the retail giant would be primary sponsor of the reality series, “Extreme Makeover: Home Edition.”
DirecTV News: The staff of the Federal Communications Commission has recommended that the agency approve the $6.6 billion acquisition of Hughes Electronics Corp.’s DirecTV by News Corp. The staff, however, proposed conditions that would prevent News Corp. from exerting too much clout at the expense of cable operators. Separately, DirecTV agreed to use Gemstar-TV Guide International Inc.’s technology for its on-screen program. DirecTV will also pay L.A.-based Gemstar for the use of the TV Guide name.
Gas Update: That sharp run-up in gasoline prices last summer was blamed on short supplies resulting from an oil industry strike in Venezuela and the war in Iraq, according to a federal report. In California, refinery breakdowns and a pipeline rupture in Arizona that diverted supplies compounded the shortages. Meanwhile, gasoline prices edged lower in a price survey for the week ended Dec. 1. In Los Angeles, an average gallon of self-serve regular was $1.695, down from $1.707 a week earlier. The statewide average was $1.680, down from $1.691.
French Rejection: The French finance ministry rejected a proposed settlement by U.S. prosecutors over charges connected with the French bank Credit Lyonnais and its 1991 purchase of bankrupt insurer Executive Life. At the time of the purchase, California law barred banks from controlling insurance companies. Under the rejected settlement, Credit Lyonnais would have paid $100 million and the government of France would have paid $475 million (Credit Lyonnais was owned by the state).
Disney Worm: A new strain of computer worm has targeted Internet sites operated by Walt Disney Co. and anti-spam organizations. The program is called Mail.MM and instructs recipients to open a file and then send a flood of e-mail to various sites. The worm infects computers running several editions of Microsoft Corp.’s Windows program.
Anti-Missile Contract: Los Angeles-based Northrop Grumman Corp. and Raytheon Co. won an eight-year contract worth as much as $4.5 billion to design and build a rocket that can intercept an enemy missile less than five minutes after launch. The Northrop-Raytheon team beat a team of Lockheed Martin Corp. and Boeing Co. The Kinetic Energy Interceptor is part of President Bush’s plan to protect the U.S. from ballistic missile attacks. It’s supposed to destroy enemy missiles by launching rockets from land- and sea-based platforms.
PREVIEW
December 8 – 14
Property Reminder: Some not-so-cheery news from the County Treasurer’s office: The first installment of annual property taxes becomes delinquent if not received by Wednesday (10th) by 5 p.m., although mailed payments can be postmarked no later than midnight on the 10th. For information: 888-807-2111.
Mayoral Speech: L.A. Mayor James Hahn delivers the State of the Valley address at the annual meeting of the Valley Industry and Commerce Association on Thursday (11th) from noon to 2 p.m. at the Universal Hilton. For information: 818-817-0545.
Sports Beat: The Lakers are home on Tuesday (9th) against New York and Friday (12th) against Dallas. The Clippers are home on Wednesday (10th) against Dallas and Saturday (13th) against Phoenix. The Kings are on the road all week. In college basketball, UCLA is home on Saturday against Loyola Marymount, while USC is home Tuesday (9th) against Cal State Fullerton. And golf’s so-called silly season of made-for-TV events continues this week at the Sherwood Country Club in Thousand Oaks with the Target World Challenge. The 72-hole tournament runs from Thursday to Sunday (11th-14th) and will feature Tiger Woods, Phil Mickelson and Davis Love III, among others.
Economic News: Tuesday (9th): The Federal Reserve meets to consider changes in interest rates. Thursday (11th): October business inventories. Friday (12th): November producer price index and October merchandise trade balance.
Mideast Discussion: The future of U.S.-Syrian relations is the topic of a Los Angeles World Affairs Council luncheon on Monday (8th) at the Omni Hotel. Featured speaker is Buthaina Shaaban, minister of expatriates. For information: 213-628-2333.
UCLA Forecast: The Anderson Forecast releases its outlook for next year at a daylong economic conference on Thursday (11th) at the university’s Korn Hall. Besides a review of next year, the conference will feature a discussion of security concerns fostered by economic globalization.
Silver Scribes: Now owned by Village Voice Media, the LA Weekly will celebrate its 25th anniversary Thursday (11th) with an invitation-only fete at the Park Plaza Los Angeles. There will also be a special issue exploring 25 of the most notable moments in Los Angeles history.
