Walt Disney Productions, is a diversified worldwide entertainment conglomerate that located at Burbank, California. The Walt Disney Productions is also commonly known as Disney. Disney was founded on October 1923 by Walt Disney and his brother, Roy O. Disney. At that time, the company was only work under the animation industry and the company name for this two brothers was Disney Brothers Cartoon Studio. Thereafter, they diversified their business into theme parks, live-action film production and television. The company also changed the name from Disney Brothers Cartoon Studio to The Walt Disney Studio and then Walt Disney Productions. In 1984, the attempted takeover of Walt Disney Productions by Saul Steinberg was due to large part to Disney’s poor management decisions that led to the undervaluation of Disney’s stock.
Those poor management decision that decided by Walt Disney Productions was due to the Disney who didn’t has high quality top management. The top management for Walt Disney Productions was changed …show more content…
Saul Steinberg, a corporate raider who think the Disney’s stock was significantly undervalue and decided to attempt takeover of Disney. After Steinberg do an investment analysis on Disney, they found that the liquidation value was approximately $ 100 per share. Steinberg was started to purchase Disney’s stock through a leveraged buyout. A leveraged buyout is the purchase of a company through the use of debt, typically through the issuance of junk bonds. Besides issuance of junk bonds, Steinberg also set up an acquisitions company with the stockholders of Reliance, Fisher Brothers Financail and Development Company and Tracinda Corporation, controlled by Krik Kerkorian to takeover Walt Disney Productions. Steinberg was successfully acquired 12.1% of Disney share after all this
Those poor management decision that decided by Walt Disney Productions was due to the Disney who didn’t has high quality top management. The top management for Walt Disney Productions was changed …show more content…
Saul Steinberg, a corporate raider who think the Disney’s stock was significantly undervalue and decided to attempt takeover of Disney. After Steinberg do an investment analysis on Disney, they found that the liquidation value was approximately $ 100 per share. Steinberg was started to purchase Disney’s stock through a leveraged buyout. A leveraged buyout is the purchase of a company through the use of debt, typically through the issuance of junk bonds. Besides issuance of junk bonds, Steinberg also set up an acquisitions company with the stockholders of Reliance, Fisher Brothers Financail and Development Company and Tracinda Corporation, controlled by Krik Kerkorian to takeover Walt Disney Productions. Steinberg was successfully acquired 12.1% of Disney share after all this