Eisner Ups His Stake in Disney to Boost Confidence

19 August 2002

Walt Disney Company chairman/ceo Michael Eisner added ten million bucks-worth of extra sparkle to the Magic Kingdom last week with his personal purchase of a block of Disney shares – a move he hope will demonstrate his confidence in an imminent turnround in the group’s lacklustre performance.

Eisner’s $10 million (€10.13m; £6.50m) purchase lifts his stake to fourteen million shares, making him second only to vice-chairman Roy E Disney, nephew of the eponymous Walt, as the group’s largest individual shareholder with 17m shares.

Earlier this month, the group reported a 26% drop in Q3 operating income which it attributed to tourism’s failure to rebound as predicted. This could result in undershooting full-year profit forecasts [WAMN: 05-Aug-02], although a return to growth is expected next year.

Data sourced from: Financial Times; additional content by WARC staff