Disney filing at SEC Fri. disclosed that CEO Michael Eisner received $11.5 million bonus in fiscal 2000, plus $813,462 salary and 2 million shares of Disney Internet Group. Disney said large bonus was given as result of company’s “very strong year.” Eisner had salary of $750,000 in 1999, when profits were down, didn’t get bonus. In fiscal 2000, Disney reported profits rose 26% to more than $2 billion. Pres.- COO Robert Iger received $1.08 million salary, $5 million bonus, 100,000 Internet shares. Board Chmn. Sanford Litvack’s salary was $787,500, plus $2 million bonus, 400,000 Internet shares.
PASADENA -- TV programmers agreed with network officials that there would be one or more strike on production of programming this spring by one or more Hollywood guild, in presentations to TV critics here. Seven studio heads predicted strike, saying it was “inevitable” and would be “devastating.” If writers and/or actors go out, it would drive viewers away, cause “incalculable” loss of jobs and hurt quality of programming -- with reality shows, as planned by networks as substitute (CD Jan 11 p3) not acceptable alternative, producers said. Strike “seems inevitable because both positions are entrenched,” said Dana Walden of 20th Century Fox.
Lockheed Martin Global Telecommunications (LMGT) introduced LinkStar broadband satellite networking service Tues. LinkStar is scalable IP terminal that provides broadband satellite forward and return channels. Product allows Global Service Providers and ISPs to offer broadband Internet access by leveraging advantages of satellite networks, company said. LMGT will begin selling LinkStar terminals immediately, with product delivery expected in 3rd quarter.
Moody’s placed senior unsecured A2 debt ratings of Portugal Telecom (PT) on review for possible downgrade following carrier’s disclosure that its Brazilian subsidiary was buying 49% of voting rights of Brazilian wireless carrier Global Telecom. PT’s Brazilian arm, Telesp Celular Participacoes (TCP), is buying stake for $1.2 billion, including assumed debt, giving it overall investment of 83% in company. Moody’s concluded that move was in line with PT’s international growth strategy but raised concerns that “the magnitude of the investment may constrain the financial ratios of the group over the near term, as well as expose it to a higher risk operating environment.”
Sprint announced Tues. it would sell $2 billion in global senior unsecured debt securities to refinance existing short-term debt.
Buyout firm Forstmann, Little agreed to buy Citadel Communications for $1 billion plus assumption of $1 billion debt, companies said. Citadel owns 143 FM and 66 AM stations in 44 markets.
CARLSBAD, Cal. -- NAB and MSTV decided there’s “insufficient evidence” to continue DTV transmission tests of 8-VSB and COFDM and said industry should stay with 8-VSB as standard. Action was taken here Mon. at joint meeting of NAB TV board, MSTV board and digital steering committees of both groups and following digital “summit” of TV broadcasters in Washington last week (CD Jan 12 p9). Straw vote of participants at Cal. meeting was 29-3 in favor of 8-VSB with dissents from Pax TV, Sinclair Bcstg., Pappas Telecasting. Only Dean Goodman of Pax TV dissented in following formal vote by NAB TV board.
NAB, which hasn’t presented its “Spirit Of Broadcasting Award” since 1995, will present 2 at April convention in Las Vegas. One will go to Margita White, retiring pres. of Maximum Service TV and former FCC commissioner, 2nd to American Women in Radio & TV. Previous winners include ex-President Ronald Reagan and former FCC Comr. James Quello.
PanAmSat asked FCC to defer deadline for filing comments on supplemental information provided by Intelsat in application to construct, launch and operate C-band and Ku-band satellites. PanAmSat wants comment period delayed until Commission has: (1) Acted upon Intelsat request, which PanAmSat opposes, for confidential treatment of documents filed along with supplemental information. (2) Determined whether Intelsat should be required to furnish additional relevant and material information.
With FCC Chmn. Kennard scheduled to leave Fri., there’s still no word from Bush Administration on replacement, sources close to process said Tues. Comr. Powell remained likely choice, at least in interim, but rumor that he already had talked to one bureau chief about staffing proved unsubstantiated.