CNN - Katzenberg sues Disney

Katzenberg sues Disney for $250 million

April 10, 1996
Web posted at: 7:35 a.m. EDT

From Correspondent Paul Vercammen

HOLLYWOOD, California (CNN) -- Former Walt Disney Co. executive Jeffrey Katzenberg filed a $250 million breach of contract suit Tuesday against the entertainment giant, claiming he is owed a share of Disney's profits.

Katzenberg, who was running Disney's movie unit when the blockbuster animated films "The Lion King" and "Aladdin" were made, argues he is entitled to a portion of the profits.

Katzenberg left Disney in 1994 after Chairman Michael Eisner declined to promote him to president. However, some show business accounts of the departure say he was pushed out.

"What we're seeing in essence is a very bitter Hollywood divorce ... You have high drama and high stakes. In this case, the stakes are a little higher than a Hollywood mansion," said Anita Busch of the Daily Variety.

The stakes rose after Disney President Frank Wells was killed in a helicopter crash in 1994.

"The former president of Walt Disney sent many things in motion over the last couple years and the effects are still being felt ... and the situation with Jeffrey Katzenberg and Disney is still one of the most obvious ripples," said entertainment lawyer Kevin Morris.

The cast in this melodrama includes some of the most influential men in Hollywood. Katzenberg, who formed Dreamworks SKG with Steven Spielberg and David Geffen, has hired powerful attorneys to battle Disney.

Current Disney President Michael Ovitz, who was chosen over Katzenberg, has reportedly tried to help settle the Katzenberg rift with little success.

"Any lawsuit involving big dollars big companies. And the attendant personalities that are involved are difficult to settle," Morris said.

Meanwhile, views vary on Katzenberg's involvement in Disney's animation department.

"One is that the films would never have been as wildly successful as they had been without Jeffrey Katzenberg's input," Busch said. "The other side is that there are a lot of capable people at Disney, they are known for animation, and with or without Jeffrey Katzenberg, they will continue to have highly successful films."

Ironically, despite the lawsuit, the future successes of Disney, Eisner, Dreamworks and Katzenberg are linked.

The recent Disney-Capital Cities/ABC merger has the group connected in a $200 million television co-venture between ABC and Dreamworks.

Feedback

Send us your comments.
Selected responses are posted daily.

Katzenberg sues Disney for $250 million

Feedback

| CONTENTS | SEARCH | CNN HOME PAGE | MAIN SHOWBIZ PAGE |