[mmouse67l]

From the New York Post online edition.

http://www.nypost.com/business/25409.htm

July 21, 2004 -- Hollywood is gearing up for an unlikely reunion.
Steve Jobs' Pixar Animation Studios is likely to renew a lucrative movie-making partnership with Disney, according to sources familiar with the matter.

Despite publicly backing out of talks with Disney in January and making the rounds of other Hollywood studios looking for a partner, Jobs has come to believe that the best home for Pixar is at Disney after all, sources said.

A reunion would mark a significant victory for Disney CEO Michael Eisner, who has long had an acrimonious relationship with Jobs.

Pixar's decision earlier this year to end discussions with Disney over an extension of their deal became a focal point for angry shareholders looking to oust Eisner.

But it appears Eisner called Jobs' bluff when he dug in and refused to renew the deal on the significantly less lucrative terms that Pixar had been proposing.

Under the current deal, which expires at the end of 2005, Disney and Pixar split the profits on the movies evenly; Disney also receives a 12.5 percent distribution fee. By some estimates Disney and Pixar could split some $1 billion from their most recent hit, "Finding Nemo."



Pixar had been seeking a new deal that would pay Disney only a distribution fee — which some have said was as low as 10 percent. Pixar had also sought to alter the terms of the existing deal.

After bailing on Disney, Pixar held preliminary discussions with other studios, including MGM, Sony, Warner Bros. and Fox. (Both Fox and The Post are owned by News Corp.)

Now, executives at those companies have all but given up hope of striking a deal with Pixar, sources said.

Pixar had also been wooed by Comcast after the cable giant attempted a hostile takeover of Disney. Comcast had sought to bring Jobs to its side in the hopes of convincing Disney shareholders that a merger with Comcast would come with a renewed Pixar deal.

Representatives for Pixar and Disney declined comment.

In March, when Eisner's job seemed to be in jeopardy amid a backlash from dissident shareholders, Jobs told Hollywood associates that he would go back to Disney only if Eisner left.

Now he appears to be changing his tune, sources say, and is likely to stick with Disney regardless of how long Eisner remains as CEO.

If Jobs were to leave the Disney fold, he would be leaving behind a film library that includes hits such as "Toy Story" and "Monsters Inc." He would also lose the rights to make sequels.

"He'll probably give Disney a shot again because it doesn't make sense to split the library," said a source.

Still, a new deal between Pixar and Disney is not likely to be completed soon. Before the current expiration date, the companies have two more movies to make: "The Incredibles" and "Cars."

"Jobs really doesn't have to do anything today," said a source. "He can wait."

[DisneyTeacher]

I hope this is true. I would hate for Disney to lose Pixar, they make great movies together.

[inluvwithdisney]

I hope pixar stays around too!!! The Disney/Pixar movies are some of Disney's BEST!!!

[coasterman2002]

It doesn't sound like Pixar is happy to continue making movies with Disney, they just don't have any other options. I want to see a Disney/Pixar deal, but Pixar is doing this for the wrong reasons.

[mickaholic4077]

I hope they stay together. Finding Nemo was a great movie!!!

[downsouthtigger]

I'm with Coasterman, I mean seems like there isn't any other company out there thats as profitable.
Pixar and Disney have been clashing for a while, but to just give up cause thats where you can make the most money? I dont know, the morals just seem off.
Oh well Disney needs them anyways and bad, since Disney can no longer make a Disney movie...but PIxar sure can!

[Metalfan]

It's a win/win for everyone involved! Pixar movies go with the Disney name which is the most popular with kids...and Disney gets the company that made some of the best movies they've ever released! I don't see the problem.

[Dana]

I'm crossing my fingers and hoping this is true! I love the movies they make together. Thanks for the great news mmouse.

[disneyguy]

I think that Disney needs Pixar right now. If you think about it Pixar is the only one that is putting out profitable movies, except Pirates of the Caribean, for Disney.

[Disneywife]

Disney wouldn't be able to survive without Pixar! And Pixar knows it. And Michael Eisner knows it. Thank goodness if this happens!

[Phillip Chapman]

Thats great. Finally good to see them friends again.