One key acquisition we made in 2004 was the Muppets. Not only is this property a perfect fit for Disney, it also demonstrates how we believe in making acquisitions at the right price, not at any price. This was exemplified by our purchase of Baby Einstein and was certainly the case with the Muppets. A few years ago, the Muppets were available at a price several times what we ended up paying. At that time, we passed and waited patiently for the cost to come down. Now we have them at a cost that we feel confident will result in a good return on investment in the years to come. Our first production with Kermit and his pals is Muppets’ Wonderful Wizard of Oz, coming in the spring on ABC's Wonderful World of Disney. This will be just the first of what we expect will be many new Muppet productions that should be popping up on television, in theaters and at our theme parks...maybe even one day on Broadway. First there was Mickey. Then there was Winnie the Pooh. Now there will be Kermit, the third in a series of warm, friendly and optimistic universal characters.

If you see a pattern here, you are correct. Whether it's the Muppets or Jetix or Peter and the Starcatchers or Mary Poppins or Chicken Little or Disney Fairies, we continually have the ability to take great content from one medium and adapt it to other distribution platforms, increasing its exposure, relevance, value and (sorry, this isn't really a technical term, but it's true...) fun.

This is what we do at Disney. We did it during the challenging years, adding to the Company’s storehouse of value, and we continue to do it now, as major economic indicators are pointing up.

The net result over time is growth for you, the owners of this Company. Of course, every year won’t feature 72% earnings growth, but I feel confident that your Company is on the right track, and, more importantly, I feel confident that the Cast and employees of your Company will keep it on the right track for years to come.

Disney is a company for the ages that, thanks to the creative spirit, manages to remain eternally young.

Thank you for making the magic possible.

<< back to part VII of Letter to Shareholders

In 2004, Kermit the Frog, Miss Piggy, Gonzo, Fozzie and their Muppet friends officially joined Mickey Mouse and Winnie the Pooh as part of the Disney family.