Questions 16-20 The 100 Aker Wood may look like a dark, forbidding place these days for Michael D. Eisner. That's where Winnie the Pooh, Piglet, and Eeyore live, and the cartoon characters — which represent at least $1 billion a year in revenues for Eisner's Walt Disney Co. —— are in full revolt. A 12-years-old lawsuit, sealed in a Los Angeles court until January, has come to light, and a series of court rulings threaten the media giant with hundreds of millions in overdue license payments and possibly the loss of one of its most lucrative properties. {9_CH<$W%U
How large a hit Disney will take is still in dispute. Disney is appealing two rulings, including one alleging that company executives knowingly destroyed important papers related to its licensing deals. The Pooh affair may seem minor at a time when Eisner is under attack for Disney's chronically weak stock price and ABC's anemic ratings, but the Disney chairman hardly needs more jostling from a Silly Old Bear. What's more, the impact could be significant. After acknowledging to the Securities & Exchange Commission on Aug. 9 that "damages could total as much as several hundred million dollars" or the loss of the licensing agreement, Disney was hit with new shareholder lawsuits.
