[tigger]

It's still alive!

Disney 'seriously' looking to buy Pixar

Disney is in "serious discussions" to buy Pixar after months in which the two animation giants have been exploring ways to continue their lucrative partnership, according to a report in the Wall Street Journal. The report says that Disney would pay a "nominal premium to Pixar's current market value of $6.7 billion in a stock transaction that would make Pixar [and Apple CEO] Steve Jobs the largest individual shareholder in Disney, according to people familiar with the situation. That would vault Mr. Jobs into an even more influential place in the media world, where he already holds tremendous sway as head of Apple." The agreement would help bring the most successful producer animated movies, while its Disney's feature animation department is in the midst of a still-uncertain transformation and would also give Disney greater access to a stable of new characters that could be leveraged across the Disney empire. Jobs is the largest shareholder in Pixar, with slightly more than 60 million shares, or 50.6 percent.

macnn

I would like to see it (if it meant Jobs would spend more time at Apple) but don't really think it will happen.

[Erin]

Tigger! I miss you! This would be so great for Disney, wouldn't it?

[queensmama]

I hope it comes through!

[RowdyRAider]

If this deal works out, Jobs would have the majority of shares, and means he'd have the final say of company matters. I think that means even more power than the CEO. Not an Apple fan, but I like how Steve Jobs runs Pixar and his other companies, and I do have faith that he'd lead the company in a great direction. I do wonder how Roy Disney stands on the matter though.

[RowdyRAider]

If this deal works out, Jobs would have the majority of shares, and means he'd have the final say of company matters. I think that means even more power than the CEO. Not an Apple fan, but I like how Steve Jobs runs Pixar and his other companies, and I do have faith that he'd lead the company in a great direction. I do wonder how Roy Disney stands on the matter though.

[Cavey]

Mixed feelings on this.

[Amelia's Man]

I hope this works out! That would be so great for Disney!

[tigger]

If Jobs had majority share of Disney how long would Iger last?

[tigger]

Originally Posted by Cavey

Mixed feelings on this.

You have feelings?

[tigger]

More from the Washington Post today.

Pixar, Disney deal could change digital landscape

By Gina Keating
Reuters
Thursday, January 19, 2006; 6:45 PM

LOS ANGELES (Reuters) - A possible merger of the Walt Disney Co. <DIS.N> and Pixar Animation Studios Inc. <PIXR.O>, if successful, could give Pixar chief Steve Jobs the power to break down barriers that have long existed between online content, computer hardware and digital distribution.

The Wall Street Journal reported on Thursday that Disney was in talks to buy Pixar for $6.7 billion in stock, making Jobs -- who is chief of both Apple Computer Inc. <AAPL.O> and Pixar -- Disney's largest individual shareholder and possibly winning him a place on its board of directors.

Jobs could conceivably exert his new-found influence at one of America's biggest content companies, which is home to ESPN, ABC-TV and Walt Disney Studios, to feed Apple's digital music and video download service iTunes.

Media companies have been wary about Internet-based delivery of content because of problems with piracy, while personal computer makers have been eager to obtain more content to spur their own sales.

Analysts were divided over whether a close association with Apple and its cutting-edge digital delivery system would juice up the value of Disney's extensive film and television library.

Prudential Equity Group analyst Katherine Styponias said the convergence of content and technology posed by the Jobs' addition to the Disney board was crucial to Disney's growth.

"We believe it is critical that media companies gain a greater understanding of technology and the impact it may have on their businesses," Styponias wrote in a note on Thursday.

"In our view, no company understands both technology and the consumer better than Apple."

Analyst Jeff Logsdon of Harris Nesbitt said: "There's lots of reasons (a merger) makes lots of sense."

But he added that the market for online downloads has not developed enough to show how a Disney-Apple content partnership would play out.

"If the speculation is accurate that Steve Jobs would go on the (Disney) board, that certainly brings one of our generation's more innovative applied technologists into their umbrella," Logsdon said.

"I think there are emerging (distribution technologies) that can conceivably generate significant consumer interest and spending.."

In October, Disney Chief Executive Robert Iger cut a deal with Apple to offer a number of ABC-TV shows, including "Desperate Housewives" and "Lost" for download on iTunes.

The deal has aroused particular interest among television networks and, in December, General Electric Co.'s <GE.N> NBC Universal also struck a non-exclusive deal to offer content on iTunes.

Jobs said at the Macworld conference in San Francisco last week that the iTunes Music Store has sold 8 million videos since the program launched in October.

And on Thursday, Nielsen//NetRatings said traffic to Apple's iTunes Web site and use of its iTunes application has risen 241 percent over the past year to 20.7 million users, or nearly 14 percent, of the active Internet users.

Jupiter Research analyst David Card liked the idea of a Disney-Pixar tie-up, but said Disney does not need to buy Pixar to continue to expand its online relationship with Apple.

"It's not as if Iger and Jobs don't return each other's calls now," Card said. "Jobs would bring a great addition to the Disney board that is not very tech savvy ... but the Disney guys are thinking about this (digital distribution) already."

Pixar shares closed up 2.8 percent, at $58.87 in Thursday trading on Nasdaq. Disney shares closed up 4 percent at $26.24 on Thursday on the New York Stock Exchange.

[alexatdisney]

be carefull, you might get your wish

Relation in the past between Pixar and Disney have not been that great. There was lot's of (I'll show you), (leave us alone), etc... To have Steeve jobs with too much power might not be the best of things.

[tigger]

Originally Posted by alexatdisney

...

Relation in the past between Pixar and Disney have not been that great. There was lot's of (I'll show you), (leave us alone), etc...

Yeah but Eisner left

[Princess Tessa]

I think....I *hope* it would be a good move. Even with past differences Jobs obviously LIKES Disney...and look at how he turned around the Apple Computers company. THey had pretty much gone under and now they're booming!

I also, would like to know Roy Disney's opinion on this matter, I trust his gut feeling.

[iluvwdw]

I was watching two stock analysts discussing it on CNBC yesterday and one of them said if it doesn't happen, Disney is dead in the water (something to that effect). The reporter asking the questions asked WHY he felt that way. The analyst went on to talk about how animation is the cornerstone for the Disney Company and their latest animated films on their own (Chicken Little was named) have been just adequate, at best. NOTHING compared to Pixar movies! He also mentioned that Eisner spent 10 years taking away what the Disney Company truly stands for, and they need to get it back. He thinks this is the way to go.

I thought it was very interesting.

[Princess Tessa]

I (sadly) agree with that. Disney also needs to bring back 2D ANIMATION!!!