Steve Jobs' Magic Kingdom

Iger, the peacemaker
Then there's the wireless-phone realm. Apple purchased the domain name iPhone.org years ago and in December trademarked the name Mobile Me. That may suggest it will introduce a mobile phone or personal digital assistant to download songs over the air or sync up with a Mac or PC.

The Disney-Pixar deal could open up all sorts of strategic options for Disney and Iger if they can capitalize on Jobs' skills. For example, Disney could decide to push hard toward distributing more of its content directly over the Internet rather than relying on cable companies or movie theaters. Iger has been the most vocal voice in Hollywood on this score of late, even suggesting that new Disney movies should be released on the Internet the same day they hit the cinemas.

Since taking over from Eisner, Iger has shown himself willing to move quickly and take bold steps to remake the bureaucratic company he inherited. Among Iger's first decisions was dismantling the corporate strategic planning operation Eisner often used to scuttle risky new plans. Iger patched things up with dissident former board members Roy E. Disney and Stanley P. Gold, who incited a shareholder revolt that kept large investors away. And while Eisner warred with Jobs, Iger worked hard to improve Disney's relationship. A key part of the reason for the Disney-Pixar deal, says Jobs, was "we got to know Bob."

Still, Jobs will be joining a Disney in short supply of its old pixie dust. As a board member, Jobs may argue for fast-tracking some of the digital distribution experiments Eisner discarded. Yet that could clash with Iger's ideas about how or how quickly Disney should proceed. A board showdown could prove difficult. Not only is Iger a new CEO, but he also was the second choice among at least some of Disney's 13 board members. (Some favored Meg Whitman, eBay Inc.'s CEO and a former Disney executive.)

Iger's worst nightmare may be that Jobs could sway so many Disney board members that he would win a wide-open race to become Disney chairman. Last year, with the board reportedly split between directors Gary L. Wilson and Robert W. Matschullat, former Senator George J. Mitchell was named interim chairman. He will remain as chairman until he retires at the end of 2006.

Jobs has said he doesn't want the Disney top board job. Plus, that would complicate the potential conflicts of interest with Apple, as Disney makes more high-tech deals to distribute its content. Still, the mercurial new Disney board member could make a play to become chairman, say those with knowledge of Disney's board. "The problem then is that Bob would have a larger-than-life chairman to deal with only a year after a larger-than-life CEO was running his life," says one source close to Disney. "I can't imagine he's thrilled over that." Steve Jobs' arrival at the Magic Kingdom could have more thrills than a trip to Disneyland.

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