Disney in talks to buy Pixar?

[lynxstch]

This article is on the front page of my homepage just now!
Disney Said in Talks to Purchase Pixar
Thursday, January 19, 2006 12:55 PM EST
The Associated Press


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NEW YORK (AP) — The Walt Disney Co. is in serious talks to buy Pixar Animation Studios Inc., the maker of the hit movies "Toy Story" and "Finding Nemo" among others, following months of exploring how to continue their profitable film distribution partnership, The Wall Street Journal reported Thursday.

Citing unnamed people familiar with the plan, the Journal said Disney would pay a nominal premium to Pixar's current market value of $6.7 billion under the deal being discussed in a stock transaction that would make Pixar chief executive Steve Jobs the largest individual shareholder in Disney.

The Journal said the outcome of the talks isn't certain, and that other options are possible.

Telephone messages left Thursday morning for Disney spokeswoman Michelle Bergman in Burbank, Calif., and Pixar's Michele Clarke in New York were not immediately returned.

Pixar shares rose $2.10, or 3.7 percent, to $59.36 in midday trading on the Nasdaq Stock Market while Disney shares gained 85 cents, or 3.4 percent, to $26.05 on the New York Stock Exchange.

Jobs is the largest shareholder in Pixar, with more than 60 million shares, or 50.6 percent, according to Pixar's filings with securities regulators last year. At its current share price, his stake is worth about $3.44 billion.

Jobs is already a force in the media business as he also heads Apple Computer Inc., which reported Wednesday that first-quarter income nearly doubled on record revenue and big demand for its iPod music players.

Disney and Pixar have been partners for more than 12 years, allowing Disney to distribute and co-finance popular and profitable Pixar movies that have also included "The Incredibles." But Jobs said two years ago, amid squabbles with then-Disney CEO Michael Eisner, that he would end that relationship when it expires later this year and seek a new distribution partner.

Disney's current CEO Robert Iger, who took over last October, has reportedly made continuing the companies' relationship a priority. Iger last fall allowed Disney TV shows like "Desperate Housewives" and "Lost" to be made available in a format that could be downloaded and played on iPods.

There has been weeks of speculation that Disney might try to take a stake in Pixar or buy it outright.

The Journal said the companies are still haggling over a price, and any major moves in Pixar's stock price could disrupt negotiations. The newspaper said the two sides could decide on a less-ambitious plan, including an agreement for Disney to distribute movies that Pixar finances and makes.

 

[CathrynRose]

Hopefully they wont rip it to shreds, like they did to their own animation dept.

I hope it works out - could be a sweet deal, and I wouldnt mind Steve Jobs having some say in all things Disney, actually. he's just wacky enough to be brilliant.

 

[Kim&Chris]

I had my heart set on Iger reconciling with Pixar, but I'm not sure how I feel about Disney buying them. I guess as long as they change NOTHING about the way Pixar operates, then it would be a wonderful thing. But if they get in there and screw things up (ala Michael Eisner), then I'd start worrying.

 

[jocon]

If Jobs becomes the largest individual shareholder in Disney, doesn't that make the purchase: Pixar buys Disney instead of Disney buys Pixar? Individual might be the key word. Who is largest shareholder for Disney now, both individual and not?

 

[Poohnatic]

God, I hope not. The consistantly good/great movies at Pixar are because they aren't under the Disney umbrella. If Disney acquires Pixar, it's only a matter of time before we get sequeled to death.

Every '2' movie that comes out of Disney Animation reminds me of Walt's quote "You don't follow pigs with pigs', and yet, that's what feature animation is wont to do.

Suzanne

 

[SPAM]

i hope it happens. disney and pixar have made some great movies together and i would like to see what they could make in the future.

 

[pogopossum]

i heard the blurb on paul harvey today and wasn't surprised at all, having read disney wars and seeing the spat that went on between the two companies in the middle of the relationship that they had, it seemed like the kind of thing that destined-to-be spouses go through, and with eisner now out of the mix jobs will probably come back to the fold.

roy had a jones for pixar from the very beginning, and at one point when lucas divorced and had to sell out they could've bought his half for about $15 mil, but eisner wouldn't approve the deal, and roy was pretty upset. they had another chance later to buy the whole thing at a fraction of what it will cost now.

speaking of sequels, toy story 3 was slated to be the next movie, and this was one of the things that upset jobs and others at pixar as well as merchandising people at disney, eisner was adamant that they do something fresh, so i wouldn't say that disney will be the ones demanding sequels, it looks like pixar already has the idea to do the same idea til it is run into the ground. but if they can write a fresh story for familiar characters, i am not opposed to that, can see more adventures from the incredibles?

 

[pogopossum]

obtw, dd will be so happy, she was almost crushed when talks broke off before, i told her we needed to watch the success of the incredibles and valiant and chicken little if disney feels that they can compete with everyone elses cg movies w/o pixar, or pixar feels that they get distributed w/o disney then they won't hook back up, and i guess we see who feels they can do w/o the other. although pixar tried to get hooked up with others, nothing ever really materialized, and i am happy about that.

 

[Ziva]

I love Steve Jobs......

he's just wacky enough to be brilliant.

I really hope it goes through but only if they let all the Pixar people responsible for all the hits stay. As far as sequels go I loved Toy Story 2 and I'd love to see a 3rd one done, not to mention an Incredibles 2 would be way cool as well.

 

[Poohnatic]

Toy Story 2 was incredible BECAUSE Pixar made it, without Feature Animation's involvement. The great minds there can keep stuff fresh.

Do you feel the same about:
Tarzan 2
Cinderella 2
Pocahontas 2
Beauty and the Beast:Belle's Enchanted Christmas
Lilo and Stitch 2 (probably the only one with a decent storyline, IMO)

What I'm saying is that Pixar really thinks out what they intend to do. It seems like every movie throws down a gauntlet to them to push the envelope. Prior to Nemo, they said "Nobody knows how to do CG water ", so they spent the money to go to the great barrier reef and study how to do it. "Nobody does CG people", and the focus resulted in "the Incredibles".

That hasn't been Disney Feature Animations approach to anything for years. It really feels like their mantra is "How little can we do to make the biggest return".

Maybe I'm being a pessimist (and that's not a normal position for me, lol), but I think that Pixar being absorbed by Disney will result in all the awesome ideas they come up with being shot down for "too expensive" or "too time consuming".

Suzanne

 

[pogopossum]

i think that that opinion is definitely valid, as i said i read disney wars and michael's philosophy was definitely to swing for singles and doubles, witness the birth of touchstone pictures and the continual forgetable formula films that they turned out in the 80's to 90's. michael also turned down several projects in the last few years as too expensive for the return (CSI, lord of the rings ), but there are indications that a new sheriff may be in town with the advent of lost and narnia . neither of these projects were inexpensive to make and seem to be both hit out of the park.

i do agree that pixar will need to be left independent to a certain degree, and jobs plans to retain control, so i guess we have some hope that that will be the case. i haven't gotten a read on iger's management philosophy or style. we can keep our fingers crossed.

 

[Honu]

Oh, that would be such a culture shock for the Pixar employees. Pixar Studios is a truly special work environment. I work in a perk packed Silicon Valley office, but it's a sweat factory compared to Pixar. Disney is a corporation and they are going to do things the Disney way. While they may concede on creative issues, the change in administrative procedures and benefits will send those Pixar employees running. Takeovers and mergers are a PITA for employees.

 

[pogopossum]

one thing that the journal article mentioned that might be the best way to go would "other options". maybe they can strike another distribution deal and keep it on the same level that it is now.

 

[rtphokie]

First articles stating that the Pixar purchase is a done deal are starting to roll in:

http://applexnet.com/index.php?name=News&file=article&sid=1712

 

[Ronda93]

This hit the Wall Street Journal Wednesday (I think, maybe Thursday). They said most suspected the talks were continuing as Pixar had made no moves to getting another distribution deal.

Jobs becomes a huge shareholder and will undoubtably get a seat on Disney's board. That would be fun to watch. I also expect that Pixar would be treated as a subsidiary and would retain its culture. If anything this will help Feature Animation.

 

[Galahad]

I love Steve Jobs......

If this goes through and Jobs has a big role at Disney, he will be as hated as Eisner in a few years. He's more of a nut job that a genius IMO.