WHEN: Thursday, February 7th, 5PM ET
WHERE: "Fast Money"
The following is the unofficial transcript of a CNBC interview with Michael Eisner, Former Disney CEO and now founder of The Tornante Company and host of CNBC's "Conversations with Michael Eisner," on "Fast Money" today at 5:30PM ET. All references must be sourced to CNBC's "Fast Money."
In the interview with CNBC's "Fast Money," Michael Eisner tells host Dylan Ratigan and the "Fast Money" traders that a deal has been made to end the writer's strike.
DYLAN RATIGAN: WE WELCOME ONCE AGAIN MEDIA MOGUL EXTRAORDINARE, FRIEND OF THE SHOW, RATHER TALL MAN, MICHAEL EISNER.THE MEDIA NAMES IN GENERAL ALL HAVE PUT UP RATHER LOVELY NUMBERS AND THE STOCKS IN GENERAL HAVE PERFORMED WELL THIS WEEK. CURIOUS, HOW IT IS THAT A MEDIA COMPANY PERFORMS IN GENERAL IN AN ECONOMIC SLOWDOWN? IT'S PECULIAR TO SEE STRENGTH GOING INTO AN ECONOMIC SLOWDOWN FROM A MEDIA COMPANY?
MICHAEL EISNER: I THINK MOST PEOPLE KNOW MEDIA COMPANIES ARE RESISTANT TO SLOWDOWNS. DISNEY AND TIME WARNER, ONLY 20% OF THEIR EARNINGS COME FROM ADVERTISING AND THE MULTIPLE SOURCES FROM THEIR CABLE, EVEN NEWS CORP AND VIACOM ONLY 40% THEY'RE WELL-RUN COMPANIES. DISNEY, I THINK, IS A PARTICULARLY WELL-RUN COMPANY. RUPERT MURDOCH PUT OUT A SUCCINCT PLAN FOR THE FUTURE. IF YOU LOOK AT THE INTRINSIC VALUE OF THESE COMPANIES OVER A LONG PERIOD OF TIME BROUGHT BACK TO TODAY, ONLY 10% IS THE FIRST YEAR. I ACTUALLY THINK THE RECESSION HAS ALREADY BEEN BUILT INTO THE MEDIA COMPANIES' STOCKS. I THINK THE MEDIA STOCKS ARE UNDERVALUED AND MOST OF THE COMPANIES ARE VERY WELL RUN. AND WILL DO WELL IN THIS KIND OF ENVIRONMENT.
RATIGAN: WE HAVE A VALUE INVESTOR IN THE ROOM, KAREN. HOW DO YOU LOOK AT THE MEDIA STOCKS AS A VALUE PROPOSITION RIGHT NOW?
FINERMAN: IT WAS VERY INTERESTING WHAT YOU JUST SAID. WHEN YOU'RE LOOKING AT A DISCOUNTED CASH FLOW MODEL AND YOU THINK 10% OF THE VALUE IS 08. IS THAT PARTICULAR IN MEDIA COMPANIES OR IN GENERAL.
EISNER: I THINK ALL COMPANIES ARE DONE THAT WAY. IF YOU LOOK AT DISNEY OR TIME WARNER, THESE BRANDS SUSTAIN THEMSELVES. DISNEY IS CROSS PLATFORMED IN THEIR EARNINGS CALLS. THEY TALK ABOUT THE HANNAH MONTANA AND THE MICKEY AND THE WINNIE THE POOHS. THEIR SYNDICATION VALUES GOES FOR A LONG PERIOD OF TIME. THESE GO OVER A LONG PERIOD OF TIME OR A SESSION WILL LAST A YEAR, MAYBE TWO YEARS. THOSE INTRINSIC VALUES GO OUT OVER 7, 8, 10 YEARS BROUGHT BACK TO TODAY. YOU CAN'T SAY THE SKY IS FALLING UNLESS YOU'RE MAKING "CHICKEN LITTLE" AS A MOVE.