Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, August 15, 1995 TAG: 9508150050
SECTION: BUSINESS PAGE: B6 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: LOS ANGELES LENGTH: Medium
Hollywood superagent Michael Ovitz was named Monday to the No. 2 post at the Walt Disney Co. and will oversee a far-flung empire that will include the ABC television network.
Ovitz, who began his career as a tour guide at Universal Studios, will leave his job as chairman of Creative Artists Agency, which he co-founded, to become president of Disney Oct. 1.
The Disney presidency has been vacant since Frank G. Wells was killed in a helicopter crash in April 1994. Michael Eisner remains Disney's chairman and chief executive.
``As far as I'm concerned, we'll be interchangeable,'' Eisner said. ``Frankly, instead of having two arms and two eyes, we now have four arms and four eyes.''
Ovitz will oversee Disney movies, theme parks, consumer products and Capital Cities-ABC once the company's $19 billion merger is complete.
Talks with Ovitz began after Disney announced the surprise merger last month, when the need for more management help became obvious, Eisner said.
Ovitz can be expected to boost Disney's power to attract top stars and will likely move the company away from its traditional reliance on lower-priced talent, said Jill Krutwick, a Smith Barney Harris Upham entertainment analyst. Creative Artists Agency is Hollywood's leading talent agency, with more than 1,000 clients including Sylvester Stallone, Tom Hanks and Meryl Streep.
``Disney has clearly been more interested in attracting high-priced talent with movies like `Crimson Tide' and stars like Denzel Washington,'' she said. ``This will help them jump-start that process.''
Ovitz, 48, was considered the front-runner to run MCA-Universal when Seagram Co. purchased the company from Matsushita, but the deal soured. Seagram instead hired Ovitz's second-in-command, Creative Artists co-founder Ron Meyer.
Ovitz was offered the Disney job when Wells died, but he didn't want to leave Creative Artists at the time, Eisner said. Eisner said he tried to hire Ovitz several times during the past 20 years.
Eisner said that in his talks with Ovitz there was no discussion of who will eventually replace him as chairman.
``I have no intention of slowing down. I know I'm going to be here at least 10 more years,'' Eisner said. ``Michael's coming in to be president. Ten years from now or later, hopefully, the board will decide who would be the appropriate person to replace me.''
Disney stock jumped $2.50 to close at $59 in heavy trading on the New York Stock Exchange.
by CNB