Disney's recent interest "in seeking a buyer" for the
Angels "may be the result of greater losses than the
entertainment giant had anticipated" for the team, according
to Berry, Wolfson & Kingsley of the ORANGE COUNTY REGISTER,
who wrote that it's "become increasingly clear" that Disney
Chair Michael Eisner has "embarked on a housecleaning." KY-
based Hilliard, Lyons analyst Jeffrey Thomison, on Disney's
"disappointing" profits in the last five quarters: "This is
the longest stretch of earnings declines that we've seen.
With the stock off the way it is, all the talk of selling
operations is an example of repositioning the company."
Game Plan President Bob Caporale said that he "has talked
publicly with people interested" in Disney's sports teams:
"Disney might want to turn over control and majority
interest to somebody they're comfortable with and keep a
minority interest. These are important real estate
properties as well as sports teams" (O.C. REGISTER, 8/14).
WHAT IT MEANS ON THE STREET: The WALL STREET JOURNAL'S
Bruce Orwall reports that Eisner "has cleared the way" for
Disney CFO Thomas Staggs to "put the whole company through a
major review" of capital spending (WALL STREET JOURNAL,
8/16). Credit Suisse First Boston analyst Laura Martin:
"Many of the rumors we're hearing involve assets that are
not deemed strategic. So [Walt Disney] can raise money [by]
selling or joint venturing non-strategic assets and use that
money to re-apply to the core [businesses], which today are
troubled" ("Market Wrap," CNBC, 8/13). Seider Companies'
Jeff Logsdon: "Wall Street would like to know that Disney's
not distracted. Some of these franchises may not be
returning operating income levels that will really grow at
any significant pace" ("Business Center," CNBC, 8/13).
Former Rangers President Tom Schieffer noted the difficulty
of the baseball business and said, "It's got to be very,
very frustrating for Michael Eisner to see the books for the
Angels every year" (ORANGE COUNTY REGISTER, 8/15). In
Boston, Peter Gammons reported that "inquirers insist" that
the Angels "can be had" for $195M (BOSTON GLOBE, 8/15).
