-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 KLi/z9j9HsCVGRzzUjahIwMZSUBxlj8Bgk/ousPeuCeEjD4U/OgJMXSN64tPTROU
 S22FzVJsJYfP1cK0/uLKpw==

<SEC-DOCUMENT>0000895345-03-000562.txt : 20030820
<SEC-HEADER>0000895345-03-000562.hdr.sgml : 20030820
<ACCEPTANCE-DATETIME>20030820170233
ACCESSION NUMBER:		0000895345-03-000562
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030818
FILED AS OF DATE:		20030820

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			DISNEY ROY E
		CENTRAL INDEX KEY:			0001234300

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11605
		FILM NUMBER:		03858538

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 7774
		CITY:			BURBANK
		STATE:			CA
		ZIP:			91510
		BUSINESS PHONE:		8189734240

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WALT DISNEY CO/
		CENTRAL INDEX KEY:			0001001039
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
		IRS NUMBER:				954545390
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		500 SOUTH BUENA VISTA ST
		CITY:			BURBANK
		STATE:			CA
		ZIP:			91521
		BUSINESS PHONE:		8185601000

	MAIL ADDRESS:	
		STREET 1:		500 SOUTH BUENA VISTA ST
		CITY:			BURBANK
		STATE:			CA
		ZIP:			91521

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DC HOLDCO INC
		DATE OF NAME CHANGE:	19950918
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>dr42-disney_disneyex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<!-- - EDGAR Ease Plus 1.0                                   07/25/03  TT    -->
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
   <periodOfReport>2003-08-18</periodOfReport>
   <notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0001001039</issuerCik>
        <issuerName>WALT DISNEY CO/</issuerName>
        <issuerTradingSymbol>DIS</issuerTradingSymbol>
   </issuer>
   <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001234300</rptOwnerCik>
            <rptOwnerName>DISNEY ROY E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>4444 LAKESIDE DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>P.O. BOX 7774</rptOwnerStreet2>
            <rptOwnerCity>BURBANK</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>91510-7774</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
         <isDirector>1</isDirector>
         <isOfficer>1</isOfficer>
         <isTenPercentOwner>0</isTenPercentOwner>
         <isOther>0</isOther>
         <officerTitle>Vice Chairman of Board, V.P.</officerTitle>
      </reportingOwnerRelationship>
   </reportingOwner>
 <nonDerivativeTable>
   <nonDerivativeTransaction>
      <securityTitle>
         <value>Common Stock</value>
      </securityTitle>
      <transactionDate>
         <value>2003-07-25</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>5</transactionFormType>
         <transactionCode>G</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>7126</value>
         </transactionShares>
         <transactionPricePerShare>
           <value>0</value>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>D</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>16510280</value>
            <footnoteId id="F1"/>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
            <value>D</value>
            <footnoteId id="F1"/>
         </directOrIndirectOwnership>
      </ownershipNature>
   </nonDerivativeTransaction>
 </nonDerivativeTable>
 <derivativeTable>
   <derivativeTransaction>
      <securityTitle>
         <value>Contract</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
      </securityTitle>
      <conversionOrExercisePrice>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2003-08-18</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>J</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>0</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
         </transactionShares>
         <transactionPricePerShare>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <exerciseDate>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
      </exerciseDate>
      <expirationDate>
         <value>2008-08-18</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>7500000</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>0</value>
            <footnoteId id="F2"/>
            <footnoteId id="F3"/>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeTransaction>
 </derivativeTable>
   <footnotes>
      <footnote id="F1"> The reporting person also owns indirectly (a) 768,960 shares of Common Stock owned by the reporting person as Trustee for the benefit of the reporting person's children or grandchildren and (b) 1,248 shares of Common Stock owned by a subsidiary of Shamrock Holdings, Inc. (&quot;SHI&quot;). The reporting person and his spouse are officers and directors of SHI and own approximately 4.52% of its common stock. The remainder of the common stock of SHI is owned by the children of the reporting person and him as Trustee for their benefit and the benefit of his grandchildren. The reporting person disclaims beneficial ownership of the 768,960 shares of Common Stock owned by the reporting person as Trustee and the 1,248 shares of Common Stock owned by a subsidiary of SHI.</footnote>

      <footnote id="F2"> Mr. Disney, through the 1987 Disney Trust, as Restated (the &quot;Trust&quot;), a living trust created by Mr. Disney and of which he is a trustee, entered into a variable prepaid forward contract (&quot;VPF Agreement&quot;) for 7,500,000 shares of Common Stock, pursuant to a Master Variable Prepaid Forward Agreement, among the Trust, Credit Suisse First Boston Capital LLC (&quot;CSFB LLC&quot;) and Credit Suisse First Boston LLC. Under the VPF Agreement, CSFB LLC sold 7,500,000 shares of Common Stock into the public market in accordance with paragraphs (f) and (g) of Rule 144 under the Securities Act of 1933, as amended. Pursuant to the VPF Agreement, the Trust has agreed to sell the shares for the notional amount of $21.751 per share, subject to adjustment in accordance with footnote 3 below. The Trust has received aggregate proceeds of $124,959,495.</footnote>

      <footnote id="F3"> The VPF Agreement provides that on August 18, 2008 (&quot;Settlement Date&quot;), the Trust will deliver a number of shares of Common Stock to CSFB LLC (or, at the election of the Trust, the cash equivalent of such shares) as follows: (a) if the average VWAP of the Common Stock for the 20 trading days preceding and including the Settlement Date (&quot;Settlement Price&quot;) is less than $21.751, a delivery of 7,500,000 shares; (b) if the Settlement Price is equal to or greater than $21.751 per share (&quot;Downside Threshold&quot;) but less than or equal to $32.6265 per share (&quot;Upside Threshold&quot;), a delivery of shares equal to the Downside Threshold/Settlement Price x 7,500,000; and (c) if the Settlement Price is greater than the Upside Threshold, a delivery of shares equal to (1 - (10.8755/Settlement Price)) x 7,500,000.</footnote>
   </footnotes>
   <ownerSignature>
      <signatureName>/s/ Roy E. Disney</signatureName>
      <signatureDate>2003-08-20</signatureDate>
   </ownerSignature>
</ownershipDocument>

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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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