Walt Disney Company chief executive Michael Eisner has revealed that the media giant’s TV ad sales have recovered considerably since the disruption caused by the September 11 attacks.
Speaking to the Financial Times, Eisner declared that the spot market for TV ads had improved over recent days, while ad prices at Disney’s networks, including ABC, have become firmer.
Disney did not join rival media giants such as NewsCorp and Viacom in the chorus of profit warnings that followed last month’s devastation. However, Eisner admitted there had been a disruption to ad revenues due to uninterrupted coverage. “You don’t have to be a genius to figure out that getting zero is not as good as getting something,” he said, but added: “Right now it looks as though advertising is firming up. We’re making our budgets.”
Eisner also revealed Disney is reviewing the terms of its acquisition of Fox Family Worldwide from NewsCorp and Haim Saban [WAMN: 23-Jul-01], currently under scrutiny by regulators around the world. Disney, which agreed to pay $3.2 billion plus $2.1bn in debt, may seek to alter the deal following the attacks. “We’re looking at what has happened since then and how that affects the deal,” he said. “We are a little concerned.”
News source: Financial Times