Disney rumored to be buying Pixar

**mickey** · 01-06-2006

Pixar Animation Studios, creator of "The Incredibles," and The Walt Disney Co. are rumored to be on the verge of a deal -- either a new distribution pact between the longtime partners or the possible sale of Pixar to Disney.

Pixar CEO Steve Jobs and Disney CEO Robert Iger have been in talks to prolong their long-term distribution agreement, which ends with this summer's release of the movie "Cars."

According to the Los Angeles Times, two sources close to the deal said ongoing talks have been turning to Disney acquiring all or part of Emeryville-based Pixar. In that case, Jobs, also CEO of Apple Computer, would become a major Disney shareholder and possibly the company's chairman.

Disney and Pixar have no official comment.

Disney has been struggling to regain its crown as animation king, as Pixar has enjoyed a perfect record of six straight blockbusters, including "Finding Nemo" and "Monsters Inc."

Under their soon-to-expire deal, Pixar produces the movies and Disney markets and distributes them worldwide for a fee. The two companies split all costs and profits. As Pixar's success has grown, Jobs has said he wants a deal with Disney or another studio that would allow Pixar to keep the profits from its films while paying its partner a distribution fee only.

Past talks between Pixar and Disney fell apart in January 2004 due to friction between Jobs and Disney's then-CEO Michael Eisner. Iger, Disney's new CEO, has been courting Pixar for a new distribution deal since being tapped as successor last spring.

Analysts are questioning whether a full acquisition of Pixar would be a good move, even for a media conglomerate the size of Disney. Pixar's market value is nearly $7 billion and Disney would likely pay a premium for the company.

"Even under optimistic assumptions, the deal would likely be dilutive to Disney for the foreseeable future," wrote Michael Savner, Bank of America Securities analyst in a report on Thursday.

Savner added other doubts about the rumored deal, "We also expect that there could be integration/cultural issues," he wrote. "Arguably, what has made Pixar so successful is its independent culture and its singular focus on quality. The obvious risk to an acquisition is that both are sacrificed."

Some analysts have speculated that selling Pixar would allow Jobs to focus on running Apple Computer Inc., which is enjoying the popularity of its iPod products. But others doubt that Jobs would be willing to sell off even part of Pixar, which he bought in 1986 from George Lucas for $10 million. Jobs and Pixar's creative director, John Lasseter, a former Disney animator, established a independent and creative culture that draws in artists from around the world.

Disney - Pixar Article

brumcg · 01-06-2006

Quote:

Savner added other doubts about the rumored deal, "We also expect that there could be integration/cultural issues," he wrote. "Arguably, what has made Pixar so successful is its independent culture and its singular focus on quality. The obvious risk to an acquisition is that both are sacrificed."

Interesting news, but the quote above was the first thing that popped into my head about an acquisition. IMO, it's the differences about Pixar that made them so successful.

Bruce

**Dana** · 01-06-2006

interesting indeed...can't wait to see how this goes.

JEANY031 · 01-06-2006

i say the same thing too.

tiggerfan74 · 01-08-2006

Really? very interesting! Can't wait to hear more !

Ready2Go · 01-09-2006

They might as well.

c-palace · 01-09-2006

Wow I hope disney buys them that would be so cool!

tragic312 · 01-09-2006

i hope things work out for disney and pixar. i would like to see the two of them together again.

Experiment6-2-6 · 01-09-2006

Quote:

Originally Posted by Ready2Go

They might as well.

Disney has EVERYTHING TO LOSE by NOT acquiring Pixar, and Pixar can cash in on this acquisition to their financial benefit.

As long as Disney allows Pixar to work its magic, and there isn't too much meddling in the creativity department..

Cavey · 01-09-2006

Mixed feelings on this for the very reasons mentioned in the article.

Though Steve Jobs as Disney CEO has a strong appeal.

Princess Tessa · 01-09-2006

so many big words!.............. :S .............I do hope Disney and Pixar continue their contract.

01-06-2006	#1 (permalink)
mickey Administrator Join Date: Sep 2001 Posts: 6,232	Disney rumored to be buying Pixar Pixar Animation Studios, creator of "The Incredibles," and The Walt Disney Co. are rumored to be on the verge of a deal -- either a new distribution pact between the longtime partners or the possible sale of Pixar to Disney. Pixar CEO Steve Jobs and Disney CEO Robert Iger have been in talks to prolong their long-term distribution agreement, which ends with this summer's release of the movie "Cars." According to the Los Angeles Times, two sources close to the deal said ongoing talks have been turning to Disney acquiring all or part of Emeryville-based Pixar. In that case, Jobs, also CEO of Apple Computer, would become a major Disney shareholder and possibly the company's chairman. Disney and Pixar have no official comment. Disney has been struggling to regain its crown as animation king, as Pixar has enjoyed a perfect record of six straight blockbusters, including "Finding Nemo" and "Monsters Inc." Under their soon-to-expire deal, Pixar produces the movies and Disney markets and distributes them worldwide for a fee. The two companies split all costs and profits. As Pixar's success has grown, Jobs has said he wants a deal with Disney or another studio that would allow Pixar to keep the profits from its films while paying its partner a distribution fee only. Past talks between Pixar and Disney fell apart in January 2004 due to friction between Jobs and Disney's then-CEO Michael Eisner. Iger, Disney's new CEO, has been courting Pixar for a new distribution deal since being tapped as successor last spring. Analysts are questioning whether a full acquisition of Pixar would be a good move, even for a media conglomerate the size of Disney. Pixar's market value is nearly $7 billion and Disney would likely pay a premium for the company. "Even under optimistic assumptions, the deal would likely be dilutive to Disney for the foreseeable future," wrote Michael Savner, Bank of America Securities analyst in a report on Thursday. Savner added other doubts about the rumored deal, "We also expect that there could be integration/cultural issues," he wrote. "Arguably, what has made Pixar so successful is its independent culture and its singular focus on quality. The obvious risk to an acquisition is that both are sacrificed." Some analysts have speculated that selling Pixar would allow Jobs to focus on running Apple Computer Inc., which is enjoying the popularity of its iPod products. But others doubt that Jobs would be willing to sell off even part of Pixar, which he bought in 1986 from George Lucas for $10 million. Jobs and Pixar's creative director, John Lasseter, a former Disney animator, established a independent and creative culture that draws in artists from around the world. Disney - Pixar Article __________________ Frank Costanza: You can drop a grand in Disney World, like that.

01-06-2006	#3 (permalink)
Dana Super Mod/Packen' Kracken Join Date: Jun 2002 Location: Joisey Posts: 23,782	Re: Disney rumored to be buying Pixar interesting indeed...can't wait to see how this goes. __________________ ~82 off-site~91 off-site~97 ASMusic~ ~00 ASMovies~02 Wilderness Lodge~04 Animal Kingdom Lodge~ ~05 Animal Kingdom Lodge & Polynesian~ ~05 Port Orleans French Quarter~06 Old Key West~ ~07 Port Orleans French Quarter~08 Old Key West~ ~09 Saratoga Springs~10 Port Orleans Fench Quarter~ My Disney Countdown Counting down to: 10 day do all or die trying trip. 273 days 16 hours 26 minutes

01-06-2006	#4 (permalink)
JEANY031 Big Rescue Rangers fan Join Date: Jul 2003 Location: MIAMI,FL Posts: 1,745	Re: Disney rumored to be buying Pixar i say the same thing too. __________________ JEANY SANCHEZ MUSKETEER I Mickey Mouse 3 Musketeers Jeany, Ingamba, Erin! I Erin! I Ingamba I Epcot I Rescue Rangers October 2006- Pop Century March 2007- Disney's Port Orleans Resort-Riverside May 2007- Disney's Coronado Springs Resort Nov 2007- Disney's All Star Music Oct 2008- Disney's All Star Music May 2009- POP Century Nov 2009- Disney's All-Star Movies resort

01-08-2006	#5 (permalink)
tiggerfan74 bouncin' in now and then Join Date: Oct 2004 Location: Jupiter Florida, 2 hours south of the magic Posts: 1,803	Re: Disney rumored to be buying Pixar Really? very interesting! Can't wait to hear more ! __________________ I love Walt Disney World!! My Disney Countdown Counting down to: Our first ever Disney Cruise!! Living the suite life on the Disney Magic!!!!

01-09-2006	#6 (permalink)
Ready2Go Weeeeeeeeeeeeeee!!!!! Join Date: Aug 2004 Location: There's a great big beautiful tomorrow Posts: 5,435	Re: Disney rumored to be buying Pixar They might as well. __________________ MB member "Crush" is my 11yo DS. MB member "The Big Goof" is my 16yo DS. MB member "Peppertink" is my DW. A LOT of Disney Links for Videos, Audio, Sat Views, Info and Maps Click Here!! My Disney Countdown Counting down to: Going to see the Mouse on the West Coast! We are in Disneyland!!!!

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Disney rumored to be buying Pixar

01-09-2006	#7 (permalink)
c-palace Senior Mouseketeer Join Date: Jul 2005 Location: boise Posts: 493	Re: Disney rumored to be buying Pixar Wow I hope disney buys them that would be so cool! __________________ #1 Cruella Fan http://i7.photobucket.com/albums/y28.../cruella-1.jpg Addicted Disney Pin Collector. Warning: Do Not Let Me Near Disney Pins On Ebay.

01-09-2006	#8 (permalink)
tragic312 jay & silent bob's mommy Join Date: May 2003 Location: Pahrump, NV Posts: 3,395	Re: Disney rumored to be buying Pixar i hope things work out for disney and pixar. i would like to see the two of them together again. __________________ Jan. 15 - 22, 2003 (1st Trip to WDW) -- Beach Club June 7-16, 2003 -- Beach Club Jan. 10, 12 2004 - First Trip to Disneyland Sept. 26 - Oct. 4, 2004 -- All-Star Movies Sept. 29, 2004 -- Wedding Date January 3 - 9, 2005 - All-Star Music Sept. 24- Oct. 1, 2005 - Swan Nov. 1 - 6, 2008 - Pop Century Sept. 24 - 27, 2009 - Animal Kingdom Lodge, Pop Century http://tickers.TickerFactory.com/ezt...5f47/event.png

01-09-2006	#10 (permalink)
Cavey MB's Rabble Rouser® Join Date: Sep 2004 Location: Carlinville, IL Posts: 6,144	Re: Disney rumored to be buying Pixar Mixed feelings on this for the very reasons mentioned in the article. Though Steve Jobs as Disney CEO has a strong appeal. __________________ . . Cavey, Tigger, BossMouse, Soundgod Erin, and Lil'pocohantas in association with the Federal Emergency Management Agency, and Juicy Juice are proud to present Cavey-Fest III December 13, 2008

01-09-2006	#11 (permalink)
Princess Tessa Starting over Join Date: Apr 2005 Location: Vancouver, BC Canada Posts: 1,989	Re: Disney rumored to be buying Pixar so many big words!.............. :S .............I do hope Disney and Pixar continue their contract. __________________ Disneyland Trips 1989, 1994, 1999, 2003, 2004, 2004 (yes, twice, I'm obsessed okay?!) 2005, 2007 (I'm missing three trips but I don't remember what years) WDW Canadian Cast Member 2006 - 2007

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