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Chapter 8: The Proxy Battle (Cont'd)
From Dis-War Two: The Great Disney Proxy Culture War of 1998, by Taylor Johnson


Monday the 14th of September came. The various players filed in to the WDW Convention Center, many of them small shareholders, some of whom expressed their opinions, positive or negative, and support or lack thereof to Henson and the Disneys. One woman even tried an exorcism on Henson, much to his amusement. “God bless you too, ma’am,” he said with a warm smile. The Faith Faction of the Shepherds arrived as a group and entered like they were Jesus in the Temple there to cast out the money lenders, an arrival whose impact in that regard was lessened for many by having a couple of the more egregiously opulent televangelists in the group. Interestingly, Peltz and the Fiscal Faction largely entered separately from their allies, though Roger Stone, standing out in the crowd in his “Monopoly Man” get-up, was seen constantly moving back-and-forth between them. The board by this point had picked up Henson’s habit of calling him “The Penguin” based on the Batman villain.

Henson also had to chase away a couple of WDW Muppet Performers who had snuck into the mezzanine with Statler and Waldorf Muppets. “I appreciate the humor, guys, but we really need to play this one serious,” he told them. He’d had less luck with stopping Jerry Nelson from taunting Falwell on the way into the building using the Devil Muppet[1].

Turner had yet to arrive.

Henson took up the gavel, something that he almost never did, and knocked three times on the podium. He then treated it like it was just another board meeting, not even acknowledging the existential battle about to begin. He was halfway through the reading of the minutes when Ted Turner arrived, fashionably late, with two obvious lawyers and Michael Eisner in tow. Henson stifled a chuckle when he noted that Eisner was wearing cowboy boots and a silver-and-turquoise bola tie. Even seeing the strange, almost circus-like mix of people and strange bedfellows in the room made him want to laugh at the absurdity. Like a character in a Monty Python sketch, he was going to live in the absurdity of it all and try to enjoy himself.

When the time for New Business came around, a representative for the Shepherds took the floor. They had a speech. They had a plan. It ran like a prosecution, and the charges where three: 1) that the Disney leadership (specifically Henson) had failed to properly address the concerns of its shareholders by pursuing questionable strategic goals, 2) that the leadership had allowed the good name of Walt Disney to be tarnished through immoral and unamerican productions not in keeping with the values of the founding brothers, and (in what Henson considered an openly hypocritical assertion given the overt sociopolitical aims of the Shepherds) 3) that the leadership had allowed their personal politics and beliefs to cloud them to the will of the shareholders.

The “prosecution”, as it was, presented a string of fiscal evidence for the first charge, noting in particular such past controversies as the pursuit of impractical art-driven or charity-driven projects. The Walter Elias Disney Signature Series, done overtly “for the art”, was specifically cited as a waste of resources with a negligible to negative return on investment, specifically citing that spring’s What Dreams May Come, which received lots of critical notice, but made negligible returns on a limited Arthouse release. The underperformance of the recent Disney Animated Features compared to their lofty peak in the mid-1990s was called out time and time again, with The Shepherd’s advocate specifically calling out Kindred Spirits not just for its “morally questionable foray into the occult”, but also for it being clearly aimed at a “periphery demographic”, an apparent reference to its predominantly black cast.

“I didn’t know that twenty percent of the population was a ‘periphery,’” a frustrated CFO Richard Nanula was overheard saying.

And in a move that caused shock to reverberate through the room, they specifically called out The Muppets as “a relic, divorced from the current public tastes,” citing them as a “marginal” property that was only being supported to “salve the ego of the Chairman.” They recommended shelving or selling the Muppets and diverting the resources to “more profitable IP”.

Even the up to that point genial Henson was seen to scowl and frown at this, and later confided that he considered it a “cheap shot”.

In a move clearly aimed at winning over the Roy side of the family, they called in to question the LA Rams stadium deal, calling it “an ego-driven decision” that they laid primarily at Henson’s feet in an effort not to alienate the Disney-Millers.

The prosecution in particular hammered on the NBC deal, again and again, in what was clearly aimed at winning over GE and possibly the Disney-Millers (who had questioned the deal when made, though ultimately voted for it) to their cause. They noted in particular how the stock price and Market Cap had stagnated since the acquisition. They alleged that Henson had mismanaged the deal from the start and failed to take full and proper advantage of the integration opportunities.

Highly-selective charts showing employee compensation and overhead compared to other studios were shown, and portrayed as wasteful. The less-than-ideal Price-to-Sales Ratio was hammered on again and again, suggesting that the share price, even given the stagnation of the last two years, was overvalued and that a “correction” was inevitable if the root causes – i.e. Henson’s leadership – were not addressed. The costs of Henson’s “healthy food options” at the parks and studios were shown to be “a waste” compared to cheaper and more popular unhealthier options. Even the medical, psychological, and educational resources that Henson put in place to protect child performers were cited as an unnecessary waste of resources. “Disney and MGM are there to make TV and movies, not babysit,” the Shepherds’ advocate declared.

The painful and costly failure of Disneytown St. Louis was brought up as solid evidence of pursuing projects based on “feel good” decision making rather than sound fiscal consideration, which they again worked to shift onto Henson in order not to alienate either Disney faction, suggesting that he’d manipulated the Disney’s love for Walt’s vision. The new, $300 million Disneytown in Ontario, which had a similar situation to the St. Louis Disneytown, was brought up as an example of Henson failing to learn from this costly mistake. The massive debt acquired in the 1990s and the unplanned deal with Pearson was cited as an example of poor planning, as were the massive cost overruns for both Disneyland Valencia and Port Disney, with the cost-benefit ratios played directly against the optimistic initial promises that they made to the shareholders to justify both projects. The Song of Susan was brought up again and again, not just for the loss of profits but for the target of the largesse: research into AIDS, which was “not the purpose of the Entertainment Company”.

While they never flat-out said that it was primarily benefiting gay men, and that this alone was a strike against the leadership in their view, they let that hang out there like a dog whistle. In this way, they also alluded to the second and third charges, and then overtly stated them when the subject of Toys came up, Henson’s out-of-touch left wing “hippie” peacenik values placed out in sharp contrast to the patriotic beliefs of the American people.

In direct contradiction to their attacks on Disney’s expenses building a protective and supporting network for their child actors, they attacked Disney’s reputation as a safe place for children, parroting attacks in the media surrounding producer R. Kelly’s relationship with the then-underage singer Aaliyah. They dove into Geraldo exposés about Kevin Spacey and Bryan Singer and even tried to tie Disney animated features into these accusations, which over the years had taken on an edge of conspiracy theory amid the echo chambers of the far-right internet.

The “prosecution” spent several hours bringing in witnesses. They brought up Henson’s political and even spiritual beliefs as evidence of the second and third accusations, reading out passages from his interviews following the release of Hocus Pocus. They called out his “radical feminist witch hunt” where accusations of sexual harassment or assault led to a “purge” of talent (Turner reportedly squirmed in his seat while this happened). They called him out on rumored relationships with younger women despite being still married, in particular to the “socialist agitator” Daryl Hannah. They questioned his devotion to capitalism and profit and brought in extremely optimistic projected grown charts and profits had Disney followed a more “shareholder-centric” approach by their measure. They downplayed every success and put a spotlight on every failure. They specifically called out Frank Wells having gone to work for the Gore Administration as an example of “undue political influence”. They appealed directly to nostalgia for the “Good, old traditional America of Main Street” that Walt’s vision highlighted, with the explicit accusation that Henson’s leadership had moved away from this and instead supported “immoral, anti-Christian, and unamerican” values.

In short: they built a case that since Jim Henson ascended to the Disney board, determined to push a “demonic” and underperforming film (The Dark Crystal), that the Walt Disney company had been on a downward, fiscally unsupportable, morally and politically repugnant pathway that sullied the name of the great Walt Disney.

“Don’t let the share prices fool you,” said their representative, “Disney under Henson is a house of cards of ill repute!”

Henson notably was seen trying to stifle a laugh during their “closing statements”. “They just sounded so much like an old Sam the Eagle skit,” he said later.

The Shepherds rested their case, calling for the removal of Henson and Kinsey from their leadership positions and the formation of a new Standards Subcommittee to ensure that all creative decisions were “properly vetted” to remove “unacceptable subject matter or undue political influence.”

Al Checchi called for a recess, which Henson granted.

Henson took the time to talk to all of the various stakeholders, in particular Jack Welch, Bill Marriott, Sid Bass, and most critically both Roy Disney and Diane Miller. He even attempted to meet with the Shepherds, but was publicly rebuked. He shook hands with Turner, who held a poker face the whole time, but he did mention how much he liked Kindred Spirits (“That’s New Orleans to a ‘T’!”). Eisner was more friendly, and even hinted that Henson could come work for them if the whole thing “went south”.

Most of the stakeholders tried to reassure him, but the fact was that the Shepherds had clearly hit some nerves and reopened a lot of old wounds. Henson knew that a lot of the points had struck home, and could see it in the faces of the board. Bass was shaken. GE’s executives and representatives were animatedly talking amongst themselves. Diane Disney Miller was talking animatedly with Ron and her mother Lillian. Roy was looking scared and Stanley Gold wasn’t maintaining eye contact.

The disparate Disney factions kept sending suspicious stares each other’s way.

Still, Henson knew that it was the “defense’s turn” next.



[1] Devil Muppet: Hey, Jerry! Keep up the great work! I appreciate what you’ve done for me all these years!

Falwell: (annoyed) Get thee behind me!

Devil Muppet: You kidding? I’ve been behind you this whole time, Jerry!
First off, the Shepards are worthless hypocrites. Implying that Henson is hurting children while dismissing the steps he's taken to protect the child actors as needless is the HEIGHT of hypocrisy. Their bleating about him letting politics influence things is also rather rich given that their whole agenda is making Disney fit THEIR politics (though that is par for the course for social conservatives; politics is only okay as long as it's THEIR politics. Anything else is automatically needless). The "Standard Subcommittee" is a transparent attempt at enforcing their Orwellian desires on the company and getting rid of anything that they see threatening their comfort.

The only area they have somewhat of a point on is finance; let's face it entertainment IS a business and focusing purely on what you're passionate about can be harmful. I'm fine with artistic films like the Godfather and have enjoyed the few foreign films I've seen, but standard entertainment has its place. The problem with Peltz and his ilk is that they focus TOO much in the other direction. If there's no passion or attempt at quality, and everything is done to the cheapest denominator it's inevitably going to be shit, and that's going to turn off a lot of people and cost money in the long run. Someone else made the point that people don't like entertainment LOOKING cheap, and that is fairly true.

Come to think of it, if Peltz DOES succeed in his plan I can see him doing to Disney what David Zaslav is currently doing to warner (purging anything that's diversity friendly while pushing for cheap garbage to save money). Cue Disney quickly getting ruined while the social conservatives praise it as the best thing ever even as the entire palace crumbles around them.
 
First off, the Shepards are worthless hypocrites. Implying that Henson is hurting children while dismissing the steps he's taken to protect the child actors as needless is the HEIGHT of hypocrisy. Their bleating about him letting politics influence things is also rather rich given that their whole agenda is making Disney fit THEIR politics (though that is par for the course for social conservatives; politics is only okay as long as it's THEIR politics. Anything else is automatically needless). The "Standard Subcommittee" is a transparent attempt at enforcing their Orwellian desires on the company and getting rid of anything that they see threatening their comfort.
Come to think of it, if Peltz DOES succeed in his plan I can see him doing to Disney what David Zaslav is currently doing to warner (purging anything that's diversity friendly while pushing for cheap garbage to save money). Cue Disney quickly getting ruined while the social conservatives praise it as the best thing ever even as the entire palace crumbles around them.
The worst part is there will be a good chunk of conservatives will still think its not enough and be unsatisfied.
 
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Honestly I think that Jim should get some of the child actors who were helped by his reforms, and that they not only talk about how Jim saved them but also accuse the Shepards of not caring for children as long as the company saves money (which would of course anger the Sheppards.)
 
Honestly I think that Jim should get some of the child actors who were helped by his reforms, and that they not only talk about how Jim saved them but also accuse the Shepards of not caring for children as long as the company saves money (which would of course anger the Sheppards.)
I’m thinking that’s what he’s planning to do. It would make sense after all.
 
The new Disney Animal Kingdom park stood in for Africa for all but a few establishing shots
I had a dream last night of me quipping that they filmed on the Kilaminjaro Safari exhibit, and the truck driver guides for the ride make a Jungle Cruise-esque quip as they do so:
"Oh my gosh, look! A rare sighting of the rare film crew! Every year they migrate to the plains of Harambe!"

If not, maybe a few easter eggs are added to the auction which imply Harambe is right next to Wakanda?
 
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Thanks, all for the comments! Tune in tomorrow to see the Defense and how many of you predicted it, right or wrong. Either way, things come to a definitive climax.

Well, most obviously, the stuff about the Muppets underperforming and the stuff about Animated Features can be disproved by pointing out Nick of Time and Poet and the Dragon's success (in the latter, it's the Disney Animated Canon's biggest hit in three years).
Keep in mind that PatD just debuted in July, and while performing well, it is not yet obvious that it will make as much as it eventually does, though it's strong opening is helping defray some of those concerns. MitNoT only debuted on Sep 1 and with an OK opening (it will be a sleeper hit) so at the moment it appears to be underperforming, feeding the "Muppets are passe" narrative even though the reviews are great.

Wouldn't it be ironic for Jim to fall even as the chief complaints against him are disproven?

An uncomfortably large number of Americans seem to think white = normal.
Well, to be honest for most of the US's existence it was, except in some places in the Deep South and certain segregated neighborhoods (and of course all of those "Red Indians" on the frontier who seemed to think the land was theirs just because they'd lived there for generations, but nobody was counting them). White Normality was even an Enforced Trope for centuries, in entertainment and housing/opportunity. It's only recently that it has become apparent to most that whites won't be "Normal" (i.e. the majority) in the US for much longer, which has led to panic in certain sectors of the country. The rise of the Replacement Theory and return of White Nationalism to mainstream politics are a direct reflection of this fact, along with the symbolic (and threatening for White Normality) appearance of a non-white President and the near-election of a non-male one. Obama was "demographically significant", the first and so far only non-white US president, and thus perceived as a threat to White Normality, none the less White Power. The current US culture war is really a reflection of the battle within the US between those who accept or even welcome the end of White Normality and those who don't, which is why any form of non-white representation in more than a token (or demeaning) way is such a Troll and Flame Magnet.

Think it was coincidence that my first Troll came immediately after my take on Black Panther, which features a White Man whose claim to power is threatened by the rise of a Black Man? "Woke Bullshit" indeed.

If it hasn't been done already, I could imagine a Muppet's parody of the The Exorcist featuring Gonzo as a skit.
So could I, actually. Probably make a good skit at least.

Of course now I'm reminded of the Richard Pryor SNL take on The Exorcist.


I had a dream last night of me quipping that they filmed on the Kilaminjaro Safari exhibit, and the truck driver guides for the ride make a Jungle Cruise-esque quip as they do so:
"Oh my gosh, look! A rare sighting of the rare film crew! Every year they migrate to the plains of Harambe!"

If not, maybe a few easter eggs are added to the auction which imply Harambe is right next to Wakanda?
LOL too many Funny Mushrooms before bed, Plat?

Of course who am I to talk? One of my dreams last night involved a recreation of the Death Star Throne Room scene, only David Prowse is dressed like Chewbacca without the head on (human face visible) and is smoking a cigarette.

Not sure what that symbolizes for my subconscious, but probably nothing good.
 
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Personally, I'm thinking/hoping that this is a "darkest before the dawn" moment, given that there doesn't seem to be any mention in the other "retrospective" posts of any radical shifts.

It is amazing as to how emotionally invested I've become in this subplot - and am praying to God that the Shepherds lose. Great job, @Geekhis Khan.
 
Probably make a good skit at least.
A skit where Gonzo plays the priest and tries to exorcise Camilla would be... a certain kind of scary.

GONZO: Well, it's come to this. I wish it hadn't but now it must be done... [removes small bag from pocket and begins sprinkling dust around]

CAMILLA: [distressed clucking, flailing, smoke begins to rise]

ASSISTANT: It's working, what's in that bag?

GONZO: A secret recipe of sixteen herbs and spices! We'll marinade overnight and see where we are in the morning!

ASSISTANT: I thought it was eleven!

GONZO: Nope, this recipe's from Louisiana.
 
Proxy Wars, Episode III: Revenge of the Pith
Chapter 8: The Proxy Battle (Cont'd)
From Dis-War Two: The Great Disney Proxy Culture War of 1998, by Taylor Johnson


After the break, Disney’s Legal Weasels went about their task. They’d correctly predicted the general thrust of the Shepherd’s case, and came prepared with a game plan that included a few “surprise witnesses.”

On the political front, they butchered the Shepherds, directly calling out every politician, regardless of party, that their members had contributed to or tried to influence, and specifically noted the presence of Newt Gingrich among the team that assembled them. “They complain about Frank Wells serving his country while counting an overtly partisan politician and former Presidential candidate among their leadership.” They made note of the politically underhanded and arguably corrupt partisan actions taken by Shepherd Group Operations Officer Roger Stone. They called out Pat Robertson specifically for his partisan political past. They used information gathered from Freedom of Information Act requests to reveal every political contribution made by the Shepherd Group’s component organizations, and openly contrasted this to how while individual Disney employees or executives had made individual political contributions, often at direct odds to one another (Ron Miller and Frank Wells were specifically cited in this regard), the Walt Disney Entertainment Company had steadfastly refused to support partisan causes with company resources, and remained a “politically neutral company”.

The Legal Weasels then openly questioned how truly “American” some of the Shepherds were, specifically calling out Falwell on his open support for racial segregation in the past, including how he got his start by founding a Segregation Academy, and cited recent unsubstantiated reports of physical abuse and overt racism within Liberty University itself. They noted how many of the Shepherds had worked openly for the interests of foreign governments, in particular Roger Stone, who had a reputation through his time with Black, Manafort, and Stone as a “foreign influence peddler”, counting “murderous” dictators among his clients. They even noted his firm’s representation of Zairian dictator Mobutu Sese Seko, whom they noted (to great unease among the Faith Faction) had openly declared himself the Messiah at one point.

On the fiscal front, they pointed out the raw facts of just how much of a return that investors in Disney had earned under the current leadership, and directly compared “company assets in 1980 versus assets in 1998”. They noted the sheer international market presence and name recognition for Disney, comparing the struggling years of the 1970s and how “uncool” Disney was once considered contrasted with the current “global brand dominance” achieved by the current leadership.

For the Rams, they pointed to the improvements, and quoted a recent ESPN discussion that cited the Rams as “a team to watch” in the newly-launched 1998 season. LA winning their first two games against the Saints and the Lions (beating the former in a nail-biting 4th quarter rally) certainly helped. The growing sales of Rams merchandise promised big things to come. They showed the growth of revenue over time with the Avengers and Angels and noted the growth in market valuation for the Rams, and projected growth curves for the stadium deal based upon these historical trends. Bo Boyd was very optimistic about the growth potential of what he openly called “Ron’s Folly” with as much tongue-in-cheek irony as he could muster.

For the NBC merger, they openly admitted that things had not gone entirely to plan, but made a list of all of the many ways in which they were rooting out old, inefficient management structures and implementing “positive reforms” of exactly the type the Fiscal Faction was wanting to implement. “Doing the job right takes time, and rushing the job is counterproductive,” they said. They specifically cited how similar reforms undertaken by Turner had improved CBS’s standing since his acquisition, but noted how “it took time” to make the reforms happen, citing similar chaos at CBS in the immediate aftermath of the buy and move. They instead showed the current optimistic growth plans for the “fully integrated network”, using the sweeps jump last February from the recent TV phenomenon Rent to justify these projections, and effectively stated that “an upward trajectory is practically inevitable.”

They also openly suggested that they could work in good faith with “any shareholders willing to maintain Disney’s core values” to find more improvements, a clear carrot to the clearly wavering Peltz and other Fiscal Faction members.

For the animation studios, the ongoing blockbuster success of The Poet and the Dragon, which was performing spectacularly at the summer box office both domestically and internationally (seeing a huge turnout in China in particular), put paid to the argument that animation in particular was struggling. “Animation is a highly competitive field now,” they admitted, “so animation under Jim and Roy expanded the marketplace into Asia, beating the competition to stake our claim in the world’s fastest-growing marketplace. You can dismiss non-white princesses as ‘political correctness’ all that you want. The truth is, there’s a huge and profitable market for them.”

Even WED Signature was defended as a wise business decision, with them showing the raw overhead costs of animation with all of the animators under contract, and how idle time by animators cost the company money but offered no payback. They cited earlier years where too many animated wide releases had competed with one another and then showed how the WED-Sig line had made efficient use of the employee resources, providing both through box office and home media receipts and by expanding Disney animation’s brand reputation and employee talent. The data, they maintained, showed that having WED-Sig productions actually improved overall profit margins even if the films themselves made less direct profit than mainstream titles, simply by making more efficient use of resources and keeping animation teams productively employed. “We can pay animators to sit around, or we can pay them to remind the world how Walt Disney has the best animators, bar none, and while we’re at it make some of the sunk cost back.”

The ongoing success with the live action films, particularly the Marvel ones, they asserted, spoke for themselves.

And even the Muppets, the subject of a direct attack as a “marginal property”, were doing well, with Muppets in: The Nick of Time, released with modest expectations on September 4th, receiving excellent reviews, and some were predicting it was on its way to becoming a sleeper hit.

Even the occasional big flops were placed into a larger perspective of “risk equals reward” and “who dares, wins,” a philosophy sure to resonate with big corporate risktakers like Ted Turner and Jack Welch. No entertainment company “willing to take the necessary creative risks to be the industry leader” could avoid setbacks. But no company “unwilling to take those same creative risks” could ever be more than an “also ran”.

They paraphrased a common quote of Bernie Brillstein’s: “Anyone can take the bunt and hope for a base hit. But if you’re not striking out on occasion, then it means that you’re not swinging for the fences, and if you’re not swinging for the fences, you’re not going to score.”

And even with those setbacks, and the current post-merger stagnation, the overall climb achieved “under Miller, Henson, and Kinsey,” from the stagnation years of the Recession into the international marketplace domination of the 1990s, spoke, they said, for itself.

“The charge of fiscal mismanagement,” they concluded on that score, “is ludicrous in the face of the raw numbers.”

On the direct charges against morality and “American values” they called out a plethora of character witnesses, from The Reverend Fred Rogers to Former President Jimmy Carter, all happy to refute any claims of moral indecency against Henson in particular and the company leadership in general, citing relevant scripture to undermine the Shepherd’s arguments. Evangelical Christian employees and contractors from Glen Keane to Pete Docter to Jody Benson cited how much Jim and the company both had “respected and honored” their faith. Producer and director Joss Whedon specifically called out how Henson had “stood up for Glen and Pete when I attacked their faith, and called me out for my bad actions.” Actor Chris Farley, who’d recently made headlines for “Finding Jesus” and getting sober, specifically cited Jim and John Henson as the men who helped him back into the fold. He specifically called both Hensons “Christ-like” in their words and deeds.

In a move meant to appeal directly to the Marriott family, author Orson Scott Card, a member in good standing of the LDS Church, spoke well of Henson and the studio’s support for him and open respect for his faith while producing Ender’s Game.

And in testimony that undoubtedly struck home with Peltz in particular, Bernie Brillstein, Steven Spielberg, and Jack Tramiel all openly referred to Henson as a “Mensch” and cited his ongoing unconditional love and respect for those of the Jewish faith and his service to important issues like Holocaust remembrance.

“Jim in my experience loves everybody,” said Fred Rogers, “regardless of color, faith, ethnicity, or any other way in which you might choose to label a person. Jesus preached universal love and admonished us against judgement and self-righteousness, telling us to lay down our stones, love and accept everyone, saint and sinner alike, and turn the other cheek, and Jim has, for as long as I have known him, lived those values.”

They even turned the Shepherd’s attacks against some of the policies of the company against them, specifically calling out Disney’s support for “the poor, the vulnerable, the sick, and the needy” as inherently “moral” and inherently “American”, specifically quoting the Founding Fathers and various US presidents from all parties and even the Gospels on the matters.

The internal reckoning on sexual misconduct was cited as “a moral action” in keeping with “American values of equality and equal opportunity.”

And on the seemingly contradictory attacks against both Disney’s reputation as a safe place for underaged performers and its “waste” of funds supporting and protecting said performers, they were relentless, accusing the Shepherds of “one of the most egregiously bad-faith, two-faced, slanderous attacks” in corporate history. “Apparently, we do too much to protect children, but not enough at the same time. We’re ‘wasting’ money by giving abused families shelter in Disney hotels from their abusers, but also not doing anything to protect them? Are these two-faced, slanderous attacks and lies really what ‘moral behavior’ looks like?”

Henson’s insistence on providing mental and health support for child actors in particular, services which had saved many from dangerous situations, were cited as proof of his morality and proof that Disney is and always was a “safe space”. Former child actors, sometimes with tears in their eyes, recounted how the services had saved their lives, sometimes literally, from the pitfalls that so many child actors are subject to. “I’d probably have slit my own wrists or OD’ed on heroin by now if they hadn’t been there for me,” one former child actor recounted, tears streaking the heavy eyeliner visibly down her cheeks. Aaliyah in particular issued a blistering rebuttal, relaying that “before Disney took over [Jive], all sorts of heinous shit was going down. They [Disney] cleaned all of that up. Now no fourteen-year-old-girl has to worry that some old man’s going to put his hands down her pants.”

They hardly needed to reiterate that the Shepherds, despite their claims of superior morality and attacks on Disney’s reputation, were actively advocating for ending those exact protective services, including the ones now in play at Jive since the buyout.

They then counterattacked the morality and fiscal ethics of many of the Shepherds’ members, noting how so many of the televangelists had committed “questionable fiscal fundraising actions in the very act of this takeover attempt” by taking money from their own viewers in order to fund a “politically-motivated coup” against Disney leadership. They placed this in direct contrast with the Knights Errant campaign. “Disney’s leaders helped enrich their fans, while the self-proclaimed Metatrons of the Shepherd Group enriched only themselves.”

Peltz was seen burying his face in his palm at this point.

After the Legal Weasels finalized their case, Diane Disney Miller called for the floor, which she handed to her mother, Lillian Marie Bounds Disney. The Disney Matriarch, who was recovering from a recent stroke, carefully stood and spoke gently into the microphone.

“For the entirety of this conversation I have sat and listened to people talk about my Walt, and make claims as to who he was and what he believed. Well, none of you know who he was and none of you know what he believed. But I do.

“My husband Walt was not Walt Disney, at least not the one you saw on the television. He even said this himself to anyone who would listen.

“Walt was a mortal man, and not without fault or frailty. He could be blind to his own weaknesses and bigotries. He truly was a visionary, but also naïve in some respects, allowing the loudest voices to steer him away from his employees and his own best interests. He got pulled into politics that he didn’t understand. He drank and he smoked and he cursed. He was no angel.

“But he had a simple vision for Disney Pictures and Disneyland as a place of joy and happiness. Not a place of political indoctrination.

“And Walt may not have always been everyone’s idea of an ideal boss, and he fought tooth-and-nail against Art [Babbitt] and the unions, but this idea that Walt would have supported Mr. Peltz’s slashing employee salaries to give himself a five-million-dollar payday is preposterous. He made sure that even the man who swept up at Disneyland received a good salary and benefits and health care[1], because that’s just what a good and honorable man did.

“So, when Jim Henson came around, I and others in my family were skeptical. We knew his beatnik reputation. Walt would have had a heart attack to see his hair and beard. And I will say that Jim Henson is not Walt Disney. In fact, he’s never tried to be. He has his own vision, and it was sometimes at odds with Walt’s on specific issues. But on the big issues, on the belief in the power of imagination, vision, hard work, and that ‘great big beautiful tomorrow,’ he and Walt are completely aligned.

“Jim Henson is not Walt Disney, but he is Jim Henson. Unlike with my Walt, the man you see on that TV screen is the real Jim Henson. No deception. No lies. Honestly, Walt and Jim might have argued over many things, especially unions (she paused for the knowing laughter). But to be honest, Jim would have won over Walt the same way he won me over, for he is one of the kindest and most inherently sincere, decent, honest, honorable, and ethical, even moral men that I know, even if his hippie proclivities still stick in my craw on occasion.

“I have spoken with my family about this, and we’re putting our full support behind Jim.”

As she sat down and the murmurs and gasps and occasional applause went through the room, Roy Disney meekly raised his hand and was recognized. “You know, I wasn’t too sure of Jim either at first. I didn’t really trust his motivations. He’s made decisions that I didn’t agree with, artistically and business-wise. I’m not a big talker, so I won’t talk for long. But Jim was there for me when nobody else was. He listened to me when I spoke out about what my uncle wanted. Disney was on the wrong path in 1979. It’s on the right path now. My father Roy would have appreciated Jim. I appreciate Jim. And we’re standing with him too.”

As the cheers, murmurs, and occasional shock went through the crowd, Ted Turner stood up and appeared to wipe a tear from his eye. “By God, what a beautiful and moving tribute, and from the Disneys themselves!” he said, not even waiting to be given the floor. “I’m standing by Jim too, damn it!”

This sent the assembled guests into a tizzy, but the other shoe was about to drop.

“In fact,” Turner added, “I move that those hypocritical, money-grubbing usurpers who have the audacity to call themselves ‘Good Shepherds’ when they skin their own flock be expelled from this here meeting!”

Jim Henson pounded the gavel in a way that he never had before trying to restore order. Security guards struggled to hold a red-faced Falwell and other “Shepherds” back from the smug-faced Turner. A later witness claimed to hear the following exchange between them:

Falwell: “You lying, betraying bastard! You Judas! You ruined me!”

Turner: “Well, Jerry, I wasn’t lying when I said one thing to you: I never pass up a golden opportunity to make money or damage a rival! Feel free to call my finance folks when those margin calls come in!”

To be clear, Turner has denied ever saying this and swears to this day that he was swayed by “Lilian’s beautiful words”. A friend of Michael Eisner’s, however, claims that Eisner told him that “Ted was taking a cue from Lex [Luthor]. He didn’t care who won. He’d get his pound of flesh out of somebody either way. With Roy and Diane both behind Jim, the Shepherds were sunk.”

After Falwell was escorted out and the situation settled, Marriott pledged his support for Henson, as did Sid Bass, Steve Jobs, Steven Spielberg, and George Lucas. GE remained silent, but Bob Wright was seen to nod towards Kinsey. Numerous Knights Errant and small shareholders publicly pledged their support as well. Marginalized and obviously beaten, the Shepherds, save for Nelson Peltz and a handful of others, stormed out.

Jim Henson and the Disney Leadership had held on.

Then Peltz asked for the floor. “My sincere apologies for that circus,” he said. “I invested in Disney with a legitimate intent to improve the company’s financial standing. If the board will hear me out, I believe we can figure out some ways to improve efficiency without throwing the baby out with the bathwater.”

“Mr. Peltz,” said Henson, “I look forward to your suggestions.”

That evening, Walt Disney World threw an impromptu party, putting three nights’ worth of fireworks into a single night’s show. Turner and Eisner and even Peltz and May joined Jim Henson and the Disneys at Club 33 for drinks and revelry. But the event was marked by underlying tension. Status quo had been maintained, but for how long?

In the ensuing weeks there was a massive sell-off and stock price plunge as the Shepherds scrambled to save themselves at the expense of their former partners, but in the end most had “bought high and sold low” and done much of it with Margin buys, causing them serious financial stress. Given the sheer number of shares involved, even the loss of a couple of dollars per share meant a lot of money and the loss of ten dollars per share could be catastrophic. Most would face a reckoning from their own board members and shareholders. Margin calls as the stocks dropped sent many into bankruptcy.

Stan Kroenke, his lawyers having wisely included an escape clause within his contract with the Shepherds, claimed the shares that his money had purchased and traded them to Disney for a 10% share of the Anaheim Stadium. While the total stake was, at current market value, worth less than he’d originally invested into the Shepherds, Kroenke took the stake as reasonable compensation given the circumstances, content that over time he’d recoup his loss.

But not all of the Shepherds sold, with a rump Good Shepherd Group led by Peltz accounting for 3.6% of the outstanding shares. Not enough to drive the board, but enough to make a stink if they wanted to.

The Disney Company itself accumulated some debt, and the individual shareholders some personal debt, in acquiring shares in the buyback action, and would start buying back more, hoping to be able to “put a floor under” the stock price and claim enough to make Walt Disney Entertainment a private three-way partnership for all intents and purposes.

And Turner’s position was still a major source of anxiety, since as the owner of NBC’s rival CBS he clearly would soon be forced by the Federal Trade Commission to pick one network or the other. Would he dump CBS, which seemed unlikely, try to force the selling of NBC, or simply claim his “pound of flesh” from Disney in return for his shares?

And then a new wrinkle was thrown in when Wall Street contacts alerted the Disney board that one group, as yet not filed with the FTC, had recently acquired a nearly 3% stake in Disney amid the selloff, their identity and motivations as yet unknown.



Stocks at a Glance: Walt Disney Entertainment (DIS)

September 24th, 1998

Stock price: $101.28

Major Shareholders: Henson family (19.6%), Roy E. Disney family (13.1%), Disney-Miller family (13.2%), General Electric (10.6%), Bass Brothers (8.7%), Bill Marriott (5.8%), Columbia Entertainment (5.2%), Apple Comp. (2.2%), Amblin Entertainment (1.4%), Lucasfilm Ltd. (1.7%), Suspected “Knights Errant” (4.9%), Rump Shepherd Group (3.6%), Unknown (2.8%), Other (7.2%)

Outstanding shares: 498.6 million



[1] All true, as relayed by Abagail Disney. She also noted how he admonished her as a child never to “sass” the employees, since “they all make an honest living”. She maintains that Walt would have been embarrassed and ashamed had any of his employees ended up on food stamps or living in their car while he was receiving multiple millions of dollars in pay, not because he was a bleeding heart liberal (far from it), but because “you just didn’t do that” at the time.
 
And then a new wrinkle was thrown in when Wall Street contacts alerted the Disney board that one group, as yet not filed with the FTC, had recently acquired a nearly 3% stake in Disney amid the selloff, their identity and motivations as yet unknown.
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That, was a masterpiece. The shepherds got what was coming to them, i beivled every word writern, and as wlays you have avidoed goinig for the easy route yb still haveing some tesieon.
 
Terrific stuff! Really first class, I had a big grin across my face reading it. But bah gawd who the hell is that coming in with a steel chair? A mysterious third party! The war's not over yet, eh?
 
And then a new wrinkle was thrown in when Wall Street contacts alerted the Disney board that one group, as yet not filed with the FTC, had recently acquired a nearly 3% stake in Disney amid the selloff, their identity and motivations as yet unknown.
I see the Amtrack buyup is still on the cards :closedeyesmile:

More likely it might be one of the larger companies Disney has worked with in the past and have had a positive relationship with, Nintendo or Hasbro, for example. Nothing hostile like the Shepherds, just an investment in a corporation they believe in. Insurance against another hostile takeover, in fact.
 
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