But were they? A barrage of rumors circulating in Hollywood has suggested that Ovitz and Eisner are on each other’s nerves–a clash of the titan egos. With no direct responsibility over any Disney divisions, Ovitz has reason to be frustrated. Eisner has not relinquished any control, nor signaled internally or externally that he ever will. Instead, he has been sniping at his underling in meetings and complaining to friends about Ovitz’s abrasive style. Sure, he shares the podium with Ovitz at company meetings and has put him in charge of developing Disney’s international presence. He has given him a laundry list of problems to solve, but he is withholding from Ovitz the one thing that would mean the most: the chief operating officer title. ““It’s time for Eisner to step up and embrace Mike. Give him the COO title,’’ says one Wall Street financier. ““He can end the rumors if he wants.''
But as the Disney board was getting ready to meet this week in Orlando, Fla., followed by the celebration of the 25th anniversary of Walt Disney World–where 3,800 journalists will converge to write about the company–it’s notable that there is no talk of giving that title to Ovitz. When asked, Eisner told NEWSWEEK, ““We have a chief of corporate operations, Sandy Litvak.’’ He added that he sees no need to make any corporate changes at Disney.
The already touchy situation between the two Mikes is made worse by the rumor-mongering–Ovitz has a long list of enemies who keep the gossip mill churning. As head of Creative Artists Agency, he was once the most feared man in Hollywood; now he’s learning to kowtow, much to their pleasure. ““He made his bed and he’s lying in it,’’ says David Geffen. ““I can’t say I’m not enjoying this.''
For his part, Ovitz is extraordinarily thin-skinned about the rumored rift. He would not comment, but according to his friends he is looking to Eisner to be outspoken in his support. Because Ovitz is a troubleshooter throughout the company, without direct control over any divisions, he ““can’t take credit for anything he does,’’ says one Disney executive. ““If he does, he has to step on someone’s toes. It’s a dicey position.''
Eisner denies the rift and calls the whole brouhaha ““infinitesimally unimportant.’’ Rumors, he notes, ““are a fact of life in the competitive entertainment business. I feel bad for Mike. It’s unfair.’’ In the light of ABC’s lousy fall ratings and the lackluster performance of Disney’s stock in the current bull market, Eisner certainly has bigger problems at hand. And for now, Ovitz is swearing his allegiance.
