From: mikkelson@breakr.enet.dec.com (snopes)
Newsgroups: rec.arts.disney
Subject: Kerkorian: Disney deal limited
Date: 22 Jul 92 19:22:27 GMT
Organization: Salivation Army



                          Kerkorian: Disney deal limited


    Kirk Kerkorian, who once owned a majority interest in MGM/UA, testified 
  Tuesday [July 14] that he recalled the licensing of the MGM name to the Walt 
  Disney Co. but said the deal was only for use in Orlando and only in 
  connection with a theme park.

    "If you call the other board members that's all they will remember, too," 
  Kerkorian said.

    The 75-year-old financier was testifying in Los Angeles Superior Court 
  during the second week of a trial pitting the Walt Disney Co. against MGM, 
  over the use of the MGM name on Disney-owned theme parks and production 
  facilities.

    Much of the time Kerkorian insisted he simply could not remember many 
  details of the deal, or of much else during that period.

    At one point, to explain his poor memory, Kerkorian said, "I haven't been 
  CEO of a public company for some 30 years so some answers I just don't know." 
  At another point he said, "I depend on counsel and accounting.  I go with 
  what they tell me."

    In a cross-complaint to the breach of contract suit brought by MGM, Disney 
  contends the 1985 agreement gives it sole rights to use the MGM name in theme 
  parks worldwide.

    Although he has been involved in the ownership of major entertainment 
  companies since the late 1960s when he first acquired MGM, Kerkorian has been 
  rarely seen or heard in public.  While he no longer owns MGM or United 
  Artists, Kerkorian is still majority owner of MGM Grand, which operates 
  hotels in Las Vegas and a luxury airline and is building a movie-related 
  theme park.

    Last October, Forbes magazine estimated Kerkorian's fortune at $965 
  million, including a large chunk of stock in Chrysler Corp.

    Kerkorian testified Tuesday that he first learned of the plan to license 
  the MGM name to Disney in 1985 when it was brought to him by Frank Rothman, 
  who then ran MGM/UA.  Kerkorian said Rothman told him it would be a good way 
  to generate additional revenue.

    However, Kerkorian claimed the he couldn't recall if he was told about the 
  deal prior to the signing of the agreement or after.  He did recall an MGM/UA 
  board meeting at which Rothman "presented" the topic for discussion.  "I 
  recall this because it was unusual," Kerkorian said.  "I guess the board 
  questioned why they were giving the name for a theme park."

    Kerkorian said it wasn't until after the announcement that Disney was 
  starting up a Burbank based studio tour in 1987 that he was aware they 
  intended using the MGM name outside of Orlando.

    "It was a big surprise," he said, "not only to me but all of the other 
  directors -- all 15 of them.  I wouldn't (say I was) angry, I was upset."

    "Later, it became apparent they were going to shoot film theatrically and 
  that ticked the whole board off," continued Kerkorian.  "The (use of the) 
  name was getting out of control."

    Kerkorian testified it wasn't until 1988 or 1989 that he thought of opening 
  a theme park in Las Vegas which would use the MGM name.  He said he couldn't 
  recall what the theme of the park was intended to be.  "There were going to 
  be rides," he said, but when asked whether or not the park would have a 
  Hollywood movie theme, he replied, "I don't recall.  We didn't go that far."

    Asked by opposing counsel if he recalled a news conference announcing the 
  Las Vegas theme park, Kerkorian replied "there might have been one at the 
  Beverly Hills Hotel.  I believe I was there."  But others disputed his 
  appearance, recalling he was at the ground-breaking ceremony in Las Vegas.

    Kerkorian said that he did not recall talking to Disney CEO Michael Eisner, 
  but said he did remember when New York financier Saul Steinberg was trying to 
  make a tender offer to acquire Disney.  He said that he had agreed if 
  Steinberg was successful, MGM would have acquired Disney's film library.

    "They were going to (sell) the studio and the library to the best of my 
  recollection," said Kerkorian.  He then turned to MGM attorney Terry 
  Christensen and asked, "Terry, could you help me out?"

    Kerkorian then turned back to the Disney attorney and asked, "Why don't we 
  let him speak up?"  To which opposing counsel replied, "because you're the 
  witness."

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|"[Disney's machine] has placed a Mickey Mouse hat on every little developing |
| personality in America.  As capitalism, it is a work of genius; as culture, |
| it is mostly a horror."   --   Richard Schickel, "The Disney Version"       |
+-----------------------------------------------------------------------------+
|  David P. Mikkelson   Digital Equipment Corporation   Culver City, CA  USA  |
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Newsgroups: rec.arts.disney