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  Toonami Infolink :: View topic - Disney calls for Eisner to Resign
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Disney calls for Eisner to Resign
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Daikun

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Post subject: Disney calls for Eisner to Resign
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NOTE: I've updated the title to inform everyone about the biggest petition ever that could possibly bring back The Walt Disney Company to its former glory. (Scroll down 5 or 6 posts for it.)

Disney vice chairman Roy E. Disney has resigned from the media conglomerate's board, reportedly calling on chief executive and chairman Michael Eisner to also step down.

Disney's resignation may be a pre-emptive move to avoid being forced off the board of The Walt Disney Co. The board's governance and nominating committee has decided not to recommend Disney for another term because he is over the mandated retirement age of 72, the company said Sunday.

The full board is scheduled to meet Monday and Tuesday in New York; board membership is on the meeting agenda.

Disney, the nephew of company co-founder Walt Disney, has been increasingly critical of Eisner's leadership and has called for Eisner's resignation before, a move that was rejected by the board.

Disney is the last family member to be active in the company. He previously resigned from the board in 1984 to launch a stock battle for the company, which was then headed by Ron Miller, Walt's son-in-law.

Disney and Stanley Gold, who runs Disney's investments from a company called Shamrock Holdings, were instrumental in preventing a hostile takeover and installing Eisner and Frank Wells to run the business.

Gold remains on Disney's board. Wells died in a 1994 helicopter crash.

Disney's plan to resign from the board was first reported in The Wall Street Journal, which said the 73-year-old sent a scathing three-page letter to the board Sunday, criticizing Eisner's leadership over the past seven years. Eisner, 61, has held the top post since 1984.

"It is my sincere belief that it is you that should be leaving and not me," Disney wrote, according to a text of the letter obtained by the Journal.

Disney accused Eisner of "muzzling" his voice on the board, although he did offer some praise.

"Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that after 19 years at the helm, you are no longer the best person to run the Walt Disney Company," Disney wrote.

A call to Disney on Sunday was not immediately returned.

Former U.S. Sen. George Mitchell, the board's presiding director, issued a statement Sunday regretting Disney's actions.

"The Governance and Nominating Committee recently informed Mr. Disney of its judgment that the mandatory age limits of the company's Corporate Governance Guidelines, which had previously been unanimously approved by the Board, should be applied to him and two other Board members, Thomas S. Murphy and Raymond Watson," Mitchell said.

"It is unfortunate that the Committee's judgment to apply these unanimously adopted governance rules has become an occasion to raise again criticisms of the direction of the Company, and calls for change of management, that have been previously rejected by the Board."

Eisner is credited with building the company from a minor maker of mediocre films and proprietor of two theme parks in 1984 into a media giant that includes five theme parks around the world, the ABC Television network, the ESPN sports cable channel and one of the highest-grossing movie studios.

But he has been severely criticized for a series of blunders since 1994, which include the paying of a multi-million dollar severance to Michael Ovitz after serving less than two years as Disney president; the clumsy firing of former studio chief Jeffrey Katzenberg and the severe decline in ABC's ratings.

Eisner has also been criticized for micromanaging the company and presiding over a "brain drain," as top executives have left the company over the past 10 years, including Katzenberg, Steven Bollenbach, who now heads the Hilton Corp., and most recently Paul Pressler, who left last year to head Gap, Inc.

Disney's stock has fallen from more than $40 per share in 2000 to under $14 in 2002. The stock has risen nearly 34 percent since the beginning of the year as the company's fortunes have gradually improved.

Disney shares closed at $23.09 at the end of trading Friday on the New York Stock Exchange.

In September 2002, after months of often bitter infighting among board members about the company's declining fortunes, the board unanimously approved Eisner's plan for improvement, which included the most drastic changes in board membership since Eisner became chairman.

One of the changes included bringing more independent members to the board, which had long been criticized for having a too cozy relationship with Eisner.

Since then, another vocal Eisner critic, Andrea Van de Kamp, was dropped from the board.

The two other board members who will not be re-nominated due to the age limit are 76-year-old Watson and Murphy, 77.

Watson is one of the board's longest-serving members. As vice chairman of The Irvine Co., a large California builder, Watson was an adviser to Walt Disney on the design of Epcot Center and has been on the board since at least 1984.

Murphy served as chairman and chief executive of Capital Cities/ABC until Disney bought the company in 1995.


Last edited by Daikun on Fri Dec 12, 2003 1:22 am; edited 14 times in total
PostSun Nov 30, 2003 8:34 pm
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Andromaton

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Ok, I know most of you think disney is the devil and that Roy Disney is no better than any of the rest of them (daikun has said so, that I know) But this is big fucking news. I'm just sad I wasn't able to get to it first. Read Roy's Letter of Resignation. Do it. NOW.



November 30, 2003

Mr. Michael D. Eisner, Chairman
The Walt Disney Company
500 South Buena Vista Street
Burbank, CA 91521

Dear Michael:

It is with deep sadness and regret that I send you this letter of resignation from the Walt Disney Company, both as Chairman of the Feature Animation Division and as Vice Chairman of the Board of Directors.

You well know that you and I have had serious differences of opinion about the direction and style of management in the Company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities back to you. I find this intolerable.

Finally, you discussed with the Nominating Committee of the Board of Directors its decision to leave my name off the slate of directors to be elected in the coming year, effectively muzzling my voice on the Board—much as you did with Andrea Van de Kamp last year.

Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and to the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the Company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994, the Company has lost its focus, its creative energy, and its heritage.

As I have said, and as Stanley Gold has documented in letters to you and other members of the Board, this Company, under your leadership has failed during the last seven years in many ways:

1. The failure to bring back ABC Prime Time from the ratings abyss it has been in for years and your inability to program successfully the ABC Family Channel. Both of these failures have had, and I believe will continue to have, significant adverse impact on shareholder value.

2. Your consistent micro-management of everyone around you with the resulting loss of morale throughout this Company.

3. The timidity of your investments in our theme park business. At Disney's California Adventure, Paris, and now in Hong Kong, you have tried to build parks "on the cheap" and they show it and the figures reflect it.

4. The perception by all of our stakeholders-consumers, investors, employees, distributors and suppliers—that the Company is rapacious, soul-less, and always looking for the "quick buck" rather than long-term value which is leading to a loss of public trust.

5. The creative brain drain of the last several years, which is real and continuing, and damages our Company with the loss of every talented employee.

6. Your failure to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companies distributing our products.

7. Your consistent refusal to establish a clear succession plan.

In conclusion, Michael, it is my sincere belief that it is you who should by leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company.

I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don't know if you and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision.

In accordance with Item 6 of Form 8-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K.

With sincere regret,
___________________
Roy E. Disney
cc: Board of Directors
PostMon Dec 01, 2003 5:10 pm
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Zechs

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Spook very few here believe Disney is evil.

Disney wasn't evil until Eisner began doing what those 7 points listed. He was an 80's buisnessman helping to get the company out of a rut, but now he's no longer needed. What's needed is another visionary like walt.

Someone who will be able to come up with fresh ideas. Not just some moron using the Disney formula to attempt to recreate what has already been done. Eisner knows that he's got it in GOOD, and is never going to willingly give up his ownership unless it's some no name who is just a clone of him. He also knows that if he announces who this "no name" is then they'll have time to reject whoever it is.

Here's a little except from a book called "Team Rodent" on Eisner's new disney.

Quote:
Disney is so good at being good that it manifests an evil; so uniformly efficient and courteous, so dependably clean and conscientious, so unfailingly entertaining that it's unreal, and therefore is an agent of pure wickedness....Disney isn't in the business of exploiting Nature so much as striving to improve upon it, constantly fine-tuning God's work."


No longer do we have just the "Family Friendly" company from the 60's.

Only the "Totalitarion Polically Correct Let's Make Mickey Shaped Comdom's And Repackage Planters' as Chip an' Dales Special Mix!" company.
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PostMon Dec 01, 2003 10:22 pm
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Nobuyuki

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Roy's not the only one leaving...

Local story from KABC-TV:

Quote:
LOS ANGELES — Stanley Gold, a key ally of former Walt Disney Co. vice chairman Roy E. Disney, resigned from the media conglomerate's board Monday, becoming the second vocal opponent of chairman and chief executive Michael Eisner to quit the board in two days.
Gold issued a long rebuke to Eisner and the board, seconding complaints made Sunday by Roy Disney and further criticizing the board as being a rubber stamp to senior management.


Gold also repeated Roy Disney's calls for Eisner to resign.

The two former board members told The Associated Press on Monday they will speak with large shareholders, financial analysts and the public for the first time to air the company's problems.

"I think I have a better chance of persuading people on the outside to bring pressure on the board," Gold said.

He accused the board of being too cozy with Eisner, despite the departure of several key Eisner allies over the past year and the addition of new, independent directors.

"At the end of the day there was no hope of doing anything," Gold said. "They are all solid in Michael's pocket."

Gold said it was too early to decide whether he and Roy Disney would mount a formal challenge by seeking allies among large shareholders who could force a proxy fight.

"Our job is to talk to people and to educate them," Gold said. "This company has huge potential. It has a wonderful history and a wonderful future. But it has lost its creativity. It has no leadership in Michael Eisner."

Roy Disney said his main concern was the value the company offered to customers as well as shareholders.

"Our aim is to try to get the company back in a position to be the leader it has been in the past," Disney said in an interview.

The nephew of company co-founder Walt Disney said he has become increasingly dismayed by rides at Disney theme parks that don't work, rising prices being paid by consumers for Disney products and movies that carry more objectionable content.

"It's all about my name on it," Roy Disney said. "I'd like to see the product represent what I believe the name stands for."

Roy Disney, 73, stepped down from the board of directors on Sunday and resigned as chairman of Walt Disney Animation, calling on Eisner, 61, to resign.

"It is my sincere belief that it is you that should be leaving and not me," he wrote to Eisner.

But the two resignations may have little immediate impact on the company, which has shown progress fueled by improvements at its movie studio, ABC Television network and even at its theme parks, which are gradually recovering from a worldwide tourism slump.

"Unless they can really offer details that are truly private in nature, I don't think whatever they will say will mean new information for most institutional investors," said Paul Kim, senior media analyst at Tradition Asiel Securities.

Kim said Gold and Roy Disney's complaints may be valid in the long term, but that Eisner has had to focus more on boosting the company's share price, which has meant cutting costs and not spending millions of dollars on new theme park rides or television programming.

"From Mr. Eisner's standpoint, he had to listen to what investors wanted now and I think he did," Kim said.

Gold's resignation comes as Disney's board begins two days of meetings in New York.

The board is scheduled to discuss the report of its governance and nominating committee, which recommended that Roy Disney and two other directors not be renominated because they exceed the company's mandatory retirement age of 72.

Gold, 60, played a key role along with Roy Disney in 1984 to save the company from a takeover and to install Eisner as chairman. He heads Shamrock Holdings, which manages Roy Disney's investments.

But Gold's role has been diminished over the past two years as he has become more of a critic of Eisner. Last year, the board adopted new corporate governance guidelines that removed Gold's status as an independent investor and cut his influence.

Board member George Mitchell, the former U.S. senator from Maine, said in a statement Sunday that the governance and nominating committee recently informed Roy Disney that the age-limit rule instituted last year should apply.

"It is unfortunate that the committee's judgment to apply these unanimously adopted governance rules has become an occasion to raise again criticisms of the direction of the company, and calls for change of management, that have been previously rejected by the board," Mitchell wrote.

Financial analysts said before news of Gold's resignation that Roy Disney's comments would probably not have a long-term effect on the company because they come at a time when its fortunes are on the rise.

"This is unpleasant for everybody," said Harold Vogel of Vogel Capital Management in New York. "But as long as the company's stock price stays up, as long as the trends are on the mend, there's no reason to believe there would be anything different."

Most analysts surveyed by Thomson First Call expect Disney to increase its earnings in 2004 by 30 percent to 86 cents per share and by another 18 percent to $1.02 per share in 2005. The company's theme parks have seen slight improvements as tourism increases and its troubled ABC Television network has seen some rise in ratings and advertising revenue.

Shares of Disney were up 5 cents to $23.14 in late afternoon trading Monday on the New York Stock Exchange.

Roy Disney is the last family member active in the company, founded in the 1920s by his uncle Walt and his father, Roy O. Disney.

In January, the board announced three other resignations in an attempt to shrink the board to a more manageable size.

One of those directors was another Eisner critic, Andrea Van de Kamp.

While the board's actions since January eliminate four directors known to be Eisner allies and add several new independent members, they also effectively rid the board of all known opposition to Eisner and his management team.

Note: The Walt Disney Company is the parent company of KABC-TV.


Also of note: News site Jim Hill Media has an interesting take on the situatiion...
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PostTue Dec 02, 2003 6:31 am
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Andromaton

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In addition to tendering his letter of resignation to the Walt Disney Company, Roy Disney is circulating the following letter addressed to Disney employees ("cast members"):

ROY EDWARD DISNEY


December 3, 2003


Dear Disney Cast Members,

It was nearly 20 years ago that a small group of us recognized that dramatic changes were necessary to reinvigorate and reenergize the Disney Company. We changed the composition of the Board and assembled a new leadership team headed by Frank Wells and Michael Eisner. I returned to the Disney cast and, working as a team, we planted the seeds that rekindled the spirit and creativity that is synonymous with Disney. Those efforts paid off handsomely in the late ‘80s and early ‘90s. Once again, Disney was admired for the wholesome family entertainment it brought to millions of people of all ages. Together we created the dreams and excitement that made Disney respected and beloved throughout the world. We succeeded in recapturing the dream born of Walt and my father and the heritage they left to us.

Sadly, times have changed. Michael Eisner has lost sight of the vision upon which this Company was founded. The focus has shifted to the chase for the quick buck instead of a dedication to new and high quality ideas, the development of enduring value. This has led to division within the Disney workforce, a revolving door of managers, and the exodus of too many of our most creative and inspired employees.

For the last several years, Michael Eisner has done his utmost to isolate me from the members of Disney’s Animation Department and exclude me from participation in decision making regarding the Department. Most recently, I was prevented from even attending the Animation Department screening of three pending feature animation projects. The collegiality and openness that once typified the Disney workplace has been destroyed.

It is against this backdrop that I had no choice but to resign as Chairman of Disney’s Animation Department and as a member of Disney’s Board of Directors. This has been a very painful decision. I am torn between my duties and loyalties to all of you who have made my journey so memorable and special, and the
need to preserve the Disney heritage for future generations. However, I cannot stand idle as the heart and soul of this Company is being systematically eliminated by senior management protected by an ineffective Board of Directors. This is a Board that seeks to avoid the constructive tension necessary to guide management through difficult times. Instead, it is a Board that seeks to stifle dissent and, to that end, has asked me to leave the Board of Directors.

Although this is not how and when I would have liked to leave the Disney Company, I assure you that I view it not as an isolated and sad event, but as part of a process. I hope it is not too late for the Disney Board of Directors to finally recognize that fundamental change is needed to restore the Disney luster, nurture and protect the wonderful characters that together we have developed and, most importantly, to create the environment within the workplace necessary to give life to new Disney icons for the generations to come.

As I now set off on a different course, I cannot fail to publicly and openly once again express to all of you my most heartfelt thanks. I am grateful that we have shared this journey. Without you, your contributions and camaraderie we would not have been able to make the magic and wonder that is Disney. I hope that one day soon the Disney Board gets the message.

Yours faithfully,


Roy E. Disney
PostThu Dec 04, 2003 12:39 am
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Nobuyuki

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And the reactions continue...battlelines are starting to form...

Quote:
Roy Disney Sees Groundswell in Rebellion
December 03, 2003 9:26:00 PM ET
By Peter Henderson

LOS ANGELES (Reuters) - Roy Disney's rebellion against the management of Walt Disney Co. (DIS) has found fertile ground among small shareholders and average ``folks,'' the former director said on Wednesday.

However, three days after resigning in protest from the Disney board and vowing to bring down Chief Executive and Chairman Michael Eisner, Roy Disney did not offer a specific plan when asked what would convince institutional shareholders to back him.

``There is a kind of a groundswell out there,'' Disney said, describing an outpouring of support from small investors and employees at the company, where he was the last founding family member in senior management.

``The response from folks is astonishing. I am absolutely boggled by it,'' he said.

Roy Disney and ally, Stanley Gold, recruited Eisner in 1984 but have fallen out with him in recent years. In a letter to some Disney employees on Wednesday, Roy Disney said, ``Michael Eisner has lost sight of the vision upon which this company was founded.''

Roy Disney and Gold resigned from the board this week after a nominating committee decided to force Roy Disney into retirement. Disney, who stepped down as vice-chairman of the board and head of animation, said departing was painful, but in some ways a relief given the atmosphere at work.

``It was like the mafia. You couldn't say 'good morning' without somebody saying you are talking out of turn,'' Disney said, arguing that the current board squelched dissent.

CONCERN OVER THEME PARKS

Eisner, he argues, has not invested in theme parks as he should, and the board of directors was ineffective.

``The upkeep down in Disneyland is sickening,'' he said, adding that the company under Eisner had built ``half a park'' but charged full-park prices at California Adventure, the theme park opened next to Disneyland in Southern California.

The park opened to mediocre reviews in 2001, but the company has added a number of new attractions that have proved popular, especially with younger children.

In the Wednesday letter, made available to Reuters, Disney added that under Eisner ``the focus has shifted to the chase for a quick buck.''

Eisner has not commented, but the independent members of the board in a statement have said that they had discussed and deliberated on all the issues Gold, in particular, had raised and had rejected the recommendation to change management.

The directors called the rebellion a ``destructive course'' for employees and shareholders.

Some Wall Street investors and analysts have said that the company needs new ways to grow, but a number of fund managers have said that the open rebellion, which has been simmering for more than a year, was too late, with Disney stock rising.

One former critic of management said Roy Disney did not have a chance to succeed. ``He's howling in the wind -- the stock's up and now there are two voices (of dissent) who have left,'' said Herbert Denton, president of Providence Capital, which pushed Eisner last year to improve operating performance. Denton said he no longer owned Disney shares.

Roy Disney referred to average folks, however, such as smaller investors who had held Disney for years or decades. ``I think they are the ones who will be the most vociferous'' in support, he said.

Disney said he wanted to ``present the idea that there is a better future.'' He and Gold say it is too early to talk specifics.

Disney concluded that those who said he could not succeed reminded him of doubters in 1984, when he resigned from the board to force a change in management. Six months later he succeeded in getting Eisner named CEO and chairman.

``The things that need to happen tend to happen,'' he said.

_________________
"When I became a man, I put away childish things, including the fear of childishness and the desire to be very grown up."- C.S. Lewis
Wink
"Superman can't be emo. He can't cut himself."-CP
PostThu Dec 04, 2003 4:46 am
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Daikun

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This is it, folks! This is our last stand to overthrow Michael Eisner! After this, there's no turning back!

Quote:
"I've always been bored with just making money. I've wanted to do things, wanted to build things, to get something going." - - Walt Disney

We, the undersigned members of the animation community, wish to lend our full support to Roy E. Disney and Stanley Gold as they seek to uphold the traditions of excellence that once defined the Disney name. We follow their lead in calling for Michael Eisner's resignation from the Walt Disney Company.


The full letter and petition for support of Roy Disney is available here.

http://www.pruiksma.com/letterofsupport.html

Petition signing closes on December 9 at midnight!

Sign! NOW!
PostSat Dec 06, 2003 11:08 pm
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Beatdiggga

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Sign fools!
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PostSun Dec 07, 2003 2:05 am
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counterparadox

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Don't just sign it, spread the word people. I'm telling everyone I know. I wrote a long spiel about it in my blog. The guy that runs this site and made the petition worked inside Disney for 20 years and saw EVERYTHING that's gone down. For the love of all that is good in this world, sign the petition.
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PostSun Dec 07, 2003 2:42 pm
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MegamanTrigger

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Well, I signed the petition. I might not watch Disney too much, but I don't to see it run into the ground.
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PostSun Dec 07, 2003 4:01 pm
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The link apears to have been shut down. Is there an email address we can spam Eisner with?
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PostMon Dec 08, 2003 8:44 pm
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Andromaton

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AnimePrime wrote:
The link apears to have been shut down. Is there an email address we can spam Eisner with?


It still works.
PostMon Dec 08, 2003 8:51 pm
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Kalma

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I thinj someone here said Disney owns some Anime rights that it aint using. Something about Saban or some such thing. Let's petition THAT too.
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PostTue Dec 09, 2003 1:24 am
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Andromaton

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how about not, lets get disney fixed first. we can wait on the unimportant stuff.

Actually Disney is sitting on a fairly huge library of shows that it isn't using. Pretty much everything Fox Kids ever aired.
PostTue Dec 09, 2003 1:36 am
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Kalma

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I meant we protest that in a small way by addiong a small clause to the end of our protest. The big thing is important but we want to fix the small stuff too.
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PostTue Dec 09, 2003 1:44 am
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