Happily ever after

For much of Michael Eisner's career, his arrogance appeared a virtue. He saw off critics and rivals in the jungle that is Hollywood for two decades from his perch atop Walt Disney, issuing decrees, threats and lawsuits almost daily in his efforts to dominate the global entertainment business.

But his legendary belligerence came back to haunt him last week when the Magic Kingdom, made vulnerable by a backlash from investors including founder Walt Disney's nephew Roy, became the target of a hostile $66 billion (£35 billion) takeover approach from Comcast, a cable TV company.

The sobering news was delivered to Eisner in a Monday phone call from Comcast chief Brian Roberts. It was not the first time they had spoken. Eisner had screamed at Roberts in the past when Comcast poached a key Disney executive. More recently, they clashed over how much Disney was demanding for sports programming that Comcast wanted for its 21 million cable subscribers.

Analysts give Comcast a good chance of succeeding, in part because Eisner has angered so many important people over the years. Disney watchers in Hollywood and Wall Street expect Eisner to be shown the door within a few months, even if the takeover bid fails, merely because he has become a lightning rod for negative publicity at a company that depends on a familyfriendly-image of laughter and fun. Disney investors have not had much fun over the past few years. Roy Disney and former fellow Disney director Stanley Gold want Eisner fired because they claim he has debased the Disney tradition and damaged the company financially. They claim Disney profits are below where they stood in 1996, while its shares trade at roughly the same levels as they did five years ago.

What is likely to be the final blow came last week when Steve Jobs, founder and head of animation powerhouse Pixar, blamed Eisner personally for walking away from a lucrative partnership that has produced hit movies including Monsters Inc. and Finding Nemo.

It was not the first time Eisner had fallen out with key creative talent.

DreamWorks co-founder Jeffrey Katzenberg, who had helped produce mega hits Beauty And The Beast, Aladdin and Lion King for Disney, walked out on Eisner in 1994 and later won a settlement from the company estimated at £134 million. Eisner, who stands six foot three, was forced to admit that he had once called five foot three Katzenberg, 'the little midget'.

Eisner fared no better with the suits. He hired as Disney president the Hollywood super agent Michael Ovitz in 1995, only to force him out 18 months later, resulting in a £48 million settlement for Ovitz. And several attempts to groom successors to Eisner, 61, were thwarted when subordinates decided to walk rather than work with him.

A pliant board of directors, which once included his son's kindergarten teacher, his architect and his close friend actor Sidney Poitier, paid Eisner £375 million between 1996 and 2003. If he is forced out, he will take a golden goodbye worth up to £320 million.

None of which makes shareholders happy. But the person Eisner must most regret angering is Comcast's Roberts.

Telegraph awaits its fate in tiny Delaware
DELAWARE, America's second-smallest state, was seized by the British from the Dutch in 1664.

A second invasion of sorts will happen next week when everyone interested in buying the Daily Telegraph might learn whether it is still for sale or whether the Barclay brothers have it wrapped up.

The scene will be the Chancery Court in Wilmington, a town difficult to find on a map because Delaware is so small. In fact, it is a couple of hours' drive north of Washington DC along Interstate Highway 95 to where the Delaware river flows into Delaware Bay.

Wilmington is accustomed to having limousine-loads of lawyers, reporters and executives descend on its court steps. Much company law is argued there - and has been since the Chancery Court, which owes its origins in part to King's Chapel in feudal England, was formally established in 1792.

Why Wilmington? Thanks to its legal tradition, generous company laws and tax leniency, Delaware has attracted the headquarters of thousands of US companies and foreign corporations. And in its time, the Chancery Court has decided on everything from how to split up a circus to how takeovers should be executed. Most of all, it has drafted a clear charter of shareholder rights.

The court's findings generally favour one-share, one-vote. The size of the corporation, or the hourly rate of its lawyers matters less than the sound application of law. A rare phenomenon in the US.

Several companies, including DMGT, owner of This Is Money, last week submitted indicative bids for the Telegraph.