• by Wayne Friedman , July 11, 2005

Walt Disney Co. has resolved another long-standing company problem--this time with its dissident shareholders Roy Disney and Stanley Gold. In a press release distributed after the close of the markets, Disney and Gold have agreed not to run a rival slate of directors or take actions against the company for the next five years. As part of the agreement, Roy Disney was named director emeritus at the company. Both men also expressed "confidence" in the leadership of incoming Chief Executive Officer Robert Iger.

"It's a face-saving measure, and now Roy Disney gets invited to the screenings," said Dennis McAlpine, managing director of McAlpine Associates. "This was on the list of nuisance problems for Disney." In a statement, Disney didn't explain how the agreement came about, and added that it would not comment on the matter in the future. "We don't know for sure how this came about," said McAlpine. "Maybe this came from Michael Eisner [outgoing Disney chairman] looking to clear up his legacy."

This is the second bit of good financial and company news that Iger has seemingly shepherded. Recently, Disney reconfigured its money-losing deal with the NFL for ABC's "Monday Night Football" to be moved to its financially profitable ESPN cable network.

Disney's other long-standing issue is with Pixar Animation Studios. Headed up by outgoing Disney Chairman Michael Eisner last year, talks between the two companies ended last year in an attempt to strike another theatrical distribution deal. Pixar has provided many blockbuster animation hits for the studio, including the "Toy Story" franchise and last year's "The Incredibles." But recently, Iger has breathed new life into efforts with Pixar, and has been deeply involved in talks with Pixar chairman Steve Jobs.

All this has happened as Disney's ABC Television network has made a massive turnaround, improving its key adults 18-49 ratings by 17% last year over the year before.