When lung cancer killed Walt Elias Disney a decade ago, there were fears that the world of Disney would lose some of its wonder—and its profits. But before his own death in 1971, Roy Disney, who succeeded his younger brother, and a cadre of post-Walt executives had turned Walt Disney Productions into a thriving empire of fantasy. Today the company is bigger and richer than ever. Profits flow in from Disney's two successful theme parks, Disneyland in California and the magic kingdom at Walt Disney World in Florida, from film rentals and television, from re-releases of such longtime favorites as Bambi, Pinocchio and Fantasia, and from sales of record albums, Mickey Mouse wristwatches and everything else bearing the Disney stamp.
Last year the various forms of escapism earned Disney nearly $62 million on sales of $520 million—four times the total in 1966 when Walt died. For the first nine months of its current fiscal year, Disney was flying higher than Dumbo the elephant. Corporate profits were up 30%, and sales rose 16%. More than 6 million people flocked to Disneyland (which turned 21 in July), another 9 million to Disney World. The fifth re-release of the animated Snow White and the Seven Dwarfs, which came out in 1937, will gross an estimated $10 million in the U.S. alone by the end of this year.
Analysts' View. No one questions that Disney has come a long way since the studio gambled $1.5 million on Snow White. But Wall Street analysts insist that the company should be doing even better and are hypersensitive to any developments that could remotely be considered adverse. Last month, for example, Disney stock fell several points (to around $50, or more than 20 times earnings) because third-quarter earnings, though a record $19 million, were not up to Wall Street's expectations. Says a Disney vice president: "That's a source of irritation around here. They seem to run in a pack on the Street."
The founder's ideas still run the show: almost everything Disney is now into was conceived of by Walt. "That's the way Walt would want it" is a refrain heard frequently in the stucco Disney headquarters in Burbank, Calif. The executive most responsible for sticking to Walt's winning formulas is E. Cardon Walker, 60, who joined Walt as a camera operator in the 1930s and has been Disney president since 1971. A tall, husky man whose use of profanity is limited to an occasional G-rated "damn," Card Walker occupies an unpretentious office on the Disney lot not far from Dopey Drive and Mickey Avenue. His only concessions to the Hollywood movie mogul image are tinted glasses and a sleek gray Porsche (license plate: CARWIN).
Walker believes that "the biggest challenge we face is still to make top-quality films," and film critics tend to agree. Though slick and successful, the recent crop of Disney animated and live-action films (Gus, Treasure of Matecumbe, Robin Hood) shows little of Walt's skill at tugging an audience over pop-emotional peaks and valleys. Nor do the forthcoming The Rescuers and Pete's Dragon. Indeed, not since Mary Poppins in 1964 has Disney produced a genuinely smashing, supercalifragilisticexpialidocious hit.