CINEMA: A FIGHT TO THE FINISH?

WITH A TRIAL DATE FAST APPROACHING, TWO BATTLING MOVIE MOGULS MANEUVER MANFULLY FOR POSITION

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Meanwhile Eisner's team says that if juries are not predisposed to dislike Katzenberg, it is only because they don't know him well enough. The Disney side threatened to make the introductions. A Disney source suggested that Katzenberg would suffer when the company highlights his poor record in live-action movies--a $56 million loss on Billy Bathgate, for instance. The company has also suggested that Katzenberg grabbed too much credit for animation successes.

Disney has deposed Spielberg and Geffen, hoping to force them to take the witness stand, perhaps to discuss DreamWorks and Katzenberg's performance, including a purported loss of more than $20 million on the studio's maiden picture, The Peacemaker.

Given the stakes, a settlement makes sense, though it would be awkward for Eisner to pay Katzenberg a vast sum in the wake of shareholder anger over the $130 million or so that Disney dealt to Michael Ovitz after firing him as president last December. Conversely, the Ovitz settlement ensures that Katzenberg's sights are set high: Why should Katzenberg take less for 10 successful years than Ovitz got for 14 unimpressive months? If a deal is made, three things seem certain. One: the terms will be sealed. Two: the amount will be leaked to the press--by both sides. Three: the numbers won't come close to matching.

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