latimes.com/news/obituaries/la-me-roy-disney17-2009dec17,0,5129215.story

latimes.com
Roy Edward Disney dies at 79; nephew of Walt helped revive animation
In the 1980s after establishing financial independence, he paved the way
for a new management team that brought back to life the art form that
defined The Walt Disney Co.
By James Bates and Dawn C. Chmielewski

11:28 AM PST, December 16, 2009

Roy Edward Disney, the nephew of Walt Disney whose commitment to his 
uncle's creative spirit prompted him to mount revolts that led to the
unseating of two of the company's chief executives and a revival of the
studio's legendary animation unit, has died. He was 79. Disney, who had
been battling cancer, died this morning, according to Clifford A.
Miller, a spokesman for Disney's company Shamrock Holdings.

Disney toiled for years in the shadow of his famous uncle and his
father, Roy O. Disney, who behind the scenes ran the business side of
the Walt Disney Co. for his brother. But the quiet man in the cardigan
sweater would emerge as a forceful protector of family traditions.

"People always underestimated Roy," said Peter Schneider, the former
president of Walt Disney Feature Animation. "You underestimate Roy at
your peril, as many people have learned."

Disney devoted the first 20 years of his career to making nature films,
among them "Pancho, A Dog of the Plains," "The Owl That Didn't Give A
Hoot" and an Oscar-nominated short subject "Mysteries of the Deep."
After the death of Walt in 1966 and Roy's father in 1971, the younger
Disney was spurned in his efforts to take a larger role with the
company. He finally quit in 1977, but remained on its board as a
director, where he was largely a figurehead.

Adrift, Disney hooked up with lawyer Stanley Gold and became a
successful financier, investing successfully in a wide variety of
businesses that included broadcasting, soybeans and Israeli industrial
concerns through Shamrock Holdings, a company named for one Disney's
racing sloops.

During the 1980s, Gold, Disney and Shamrock became one of the
better-known corporate raiders, making unsuccessful hostile takeover
bids for companies such as the Polaroid Corp. camera maker and the
Wherehouse Entertainment chain of music stores. Its takeover of Central
Soya, a soybean processor in Fort Wayne, Ind., would yield a sizable
$170-million profit for Shamrock and its partners with its subsequent
sale to an Italian agricultural concern. Through investments, Gold
sought to free Disney of his financial dependence on the Disney company
stock he inherited. Most were successful, although Shamrock stumbled on
some, particularly a money-losing investment in sneaker maker L.A. Gear.

By 1984, Disney had grown increasingly frustrated with the Walt Disney
Co., which he likened to a real estate company that happened to be in
the movie business. The company had let its feature animation film
business, once the cornerstone of the company, deteriorate. The company,
Disney would later say, had lost its creative drive.

"I said to him, 'Roy, I think you've reached a point where you need to
get all the way in or all the way out,' " Gold said. "He said, 'What
does that mean?' I said, 'You either need to sell your shares in Disney
and go independent, or you need to put up a fight and get rid of the
managers and find real managers for this business.' "

With his financial independence established from his investments, Disney
pondered with Gold and a handful of other advisors what, if anything,
they could do. Finally, a decision was made to try to unseat the
company's management, made sticky by the fact that Walt's son-in-law,
Ron Miller, was chief executive. Disney abruptly quit the company board
in 1984, sending a signal to investors and Wall Street that something
was amiss. The turmoil Disney ignited eventually swept the old
management group from the corporate suites.

In the end, Disney, with an alliance formed with the billionaire Bass 
family of Texas, returned to the board and forced out the studio
management, paving the way for the hiring of a new team led by Michael
Eisner, Frank Wells and Jeffrey Katzenberg.

Upon taking over as chief executive, Eisner asked Disney what he wanted
to do. Disney responded that he wanted to revive the company's sagging
animation division, where morale was rock-bottom as the company was
releasing one of its worst-reviewed films, "The Black Cauldron." Wells
and Katzenberg both opposed the idea, said Gold, but Eisner granted
Disney his wish -- in a gesture of gratitude.

Disney persuaded the new regime to invest about $10 million in computer
animation equipment, a seemingly minor decision that proved to be a
turning point in the company's fortunes. Within a few years, the company
turned out a remarkable string of animated hits, including "The Little
Mermaid," "Beauty and the Beast," "Aladdin" and "The Lion King." The
films won critical acclaim and proved wildly lucrative as well, with
money pouring into the company not only from the box office, but from
the sales of T-shirts, toys and home videos.

"It was Roy who was the protector. It was Roy who was the godfather, the
champion and believer in it," said Schneider, who had lunch with Disney
every Tuesday for 16 years in the executive dining room, even when
animation had been exiled to warehouses in Glendale. "Animation doesn't
work without someone who believed, and Roy believed."

Disney's pet project, a new version of the 1940 Walt Disney classic
"Fantasia," was released in 2000, initially in big-screen IMAX form.
Called "Fantasia/2000," the film, like the original, blended animation
inspired largely by classical music. Included were segments set to
Gershwin's "Rhapsody in Blue" and Ottorino Respighi's "Pines of Rome."
Disney also included "The Sorcerer's Apprentice," the cornerstone of
Walt Disney's original, in the new version.

At the same time, relations between Disney and Eisner had grown
increasingly strained, with the two men communicating mostly by phone
and through e-mail. Tensions had been building since the 1994 death of
the company's president and chief operating officer, Frank Wells, which
left Eisner solely in control of the company. Disney complained to
confidants that he was being marginalized by the executive he had helped
install as chief executive.

By November 2003, Disney learned that the board's four-member nominating
committee was planning to leave his name off the slate of directors
scheduled to be elected at the company's next annual meeting. The
longtime animation chief discovered he had been shut out of a
Thanksgiving week screening of ideas for new animated films. The company
had been in a prolonged financial slump, with its earnings flat and its
stock performance anemic, but the snub was the last straw. Disney and
his business partner, Gold, abruptly quit the board of directors in
December 2003 and called for Eisner's resignation.

In a stinging rebuke, Disney said that Eisner's leadership had led to
the perception of the company as "rapacious, soul-less and always
looking for the 'quick buck' rather than long-term value." Although the
company's problems were well-known, Disney's public statement exposed
the severity of his personal and professional rift with Eisner. A month
later, Disney called on shareholders to cast a vote of no confidence in
the top executive. Their efforts rallied a stunning 45% no-confidence
vote for Eisner at the company's 2004 annual meeting in Philadelphia,
prompting Disney directors to remove Eisner as board chairman. Five
months later, Eisner said he would retire when his contract expired in
September 2006.

Disney did not relish the fight. In an interview with Fortune magazine,
he described how he summoned his four children to a family meeting where
they sat together, holding hands, and agreed he should challenge Eisner.

"His identity is more wrapped up in this company than you can imagine,"
daughter Abigail E. Disney told the magazine in 2004.

Disney and Gold continued their fight with the Disney board with a May
2005 lawsuit that challenged as "a sham" the search process that
resulted in the appointment of Eisner's hand-picked successor as the
company's new chief executive, Robert A. Iger. The new chief executive
quickly made peace with Disney, offered him an office at the company's
Burbank studios, a consultancy and the title "director emeritus." Disney
and Gold withdrew their lawsuit challenging Iger's selection.

Born Jan. 10, 1930, in Los Angeles, Disney was the only child of Roy O.
and Edna Disney. Growing up around the studio, Disney was exposed to
both the joys of the Walt Disney aura as well as its darker side. In a
1999 Times interview, Disney recalled how his uncle came to see him when
he had the chicken pox as a boy, enthralling him with a story he wanted
to make into a film about a wooden puppet named "Pinocchio."

"He scared me to death with the stuff about the whale and everything
else," Disney recalled. "I remember it very, very sharply and very
clearly. But when the movie came out, it was a big letdown for me. It
was nowhere near as good as Walt's version."

Yet his uncle and father fought bitterly at times, and for a while
weren't on speaking terms, communicating only through memos. In the 1999
interview, Disney recalled listening to the sounds of his father pulling
in the driveway at night, trying to pick up on the subtle signs of
whether it had been a good or a bad day with Walt. When the car door
slammed, "you knew it was time to go do your homework," he recalled.

Eventually, Walt wrote his brother a touching letter to make up. He also
gave him a peace pipe, which Roy E. displayed in his office after his
father died.

After graduating from Pomona College, Disney initially spurned working
for the studio, taking a job as a film editor on the television police
series "Dragnet." When he was laid off from that job, his father
arranged a job at the company. In 1955, he married Patty Daily, sister
of boyhood friend Peter Daily. The two had two sons and two daughters.
The couple divorced in 2007, after 52 years of marriage.

In addition to daughter Abigail, Disney is survived by another daughter,
Susan M. Disney Lord; sons Roy P. Disney and Timothy J. Disney; and 16
grandchildren.

Despite wealth estimated at $600 million, Disney remained shy and
outwardly unpretentious, according to people who knew him. His main
indulgences were a castle in Ireland, a jet, sports cars and financing a
passion for sailboat racing. In 1999, Disney fulfilled a lifelong dream
when he and the 12-member crew of his 74-foot Pyewacket sloop -- named
for the witch's cat in the 1958 film "Bell, Book & Candle" -- won the
biannual, 2,225-mile Transpacific Yacht Race from Los Angeles to
Honolulu, setting a course record.

A heavy smoker of unfiltered Lucky Strikes for much of his life, Disney
quit the habit in his mid-60s after his wife was ordered by doctors to
quit. Over the years he gave relatively few interviews, and only later
in life began to feel comfortable making the kind of public appearances
required of him for the company.

As a vice chairman of the studio, Disney would frequently appear at
theme parks or help promote the company's animated films. With his oval
face, sloping nose, protruding ears and mustache, Disney resembled his
uncle to the point where people in public would frequently approach him
asking if he was Walt's brother.

Disney's shyness belied a toughness that could surface when needed. He
frequently wrote pointed memos about such things as animation projects,
never hesitating to spell out what parts of a film he didn't like. And
he butted heads with former Disney Studios Chief Jeffrey Katzenberg, who
Disney felt took too much credit for the studio's animated hits.

Two of Disney's pet projects in later years included efforts to save the
peregrine falcon, which was inspired by a nature film he made, and the 
California Institute of the Arts in Valencia, where he helped carry out
the dream of Walt and his father to build and sustain a top arts college
in Southern California.

[email protected]

Bates is a former Times staff writer.


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