Disney Rumored To Be In Talks To Buy Part Or All Of Pixar

[safetymom]

Disney Rumored To Be In Talks To Buy Part Or All Of Pixar

POSTED: 11:36 am EST January 6, 2006

ORLANDO, Fla. -- Entertainment giant Disney may be on the verge of becoming the king of animation again. The company is rumored to be in talks to buy part or all of Pixar Animation Studios, the company behind blockbuster hits like Finding Nemo and The Incredibles.



The two companies already have a lucrative partnership. Pixar produces the movies and Disney markets and distributes them around the world with the companies splitting the costs and profits.

But while Disney has been struggling to regain its title as king of animation, Pixar has a string of six blockbuster successes, including Monsters Inc., A Bug's Life and Finding Nemo.

Because Pixar is so successful, CEO Steve Jobs said he wants another deal, with Disney or another studio, that would allow Pixar to keep all of its profits from its films and instead pay its partner a distribution fee.

But talks between the two companies are rumored to include the possibility of Disney buying Pixar outright. It would be pricey, even for a media conglomerate like Disney. Pixar's market value is nearly $7 billion.

If the sale goes through, Pixar's CEO Steve Jobs, who's also CEO of Apple Computer, would become a major Disney shareholder and possibly chairman of the company.

 

[DemoBri1]

Where did this article come from?

 

[safetymom]

http://www.orlandosentinel.com/business/custom/tourism/orl-bk-pixar010506,0,5485776.story

http://www.wftv.com/news/5886402/detail.html

 

[Sarangel]

Do a google search, there are a bunch of them out there...

Sarangel

 

[All Aboard]

Let us all join hands and pray this doesn't happen.

 

[dbm20th]

I've read alot of the rumors as well. This particular one seems to be a bit of an exaggeration of the others

 

[Bstanley]

Hmm, I know what you mean - but if Stevie J became Chairman - slim chance IMHO - it just might work out.

How much treasury stock does Disney have I wonder?

 

[DisOrBust]

I can't help but think about DisneyWar. What was the price when Roy wanted
Disney to buy it 15 mil???

Talk about kicking yourself in the A**.

 

[coby421]

I can't help but think about DisneyWar. What was the price when Roy wanted
Disney to buy it 15 mil???

Talk about kicking yourself in the A**.

^^ Seriously!!

 

[yaytezIOA]

I thought that deal was squashed months ago. Guess Disney doesnt want the competition with its DCA department.

 

[Galahad]

Perhaps Eisner was the problem with the old deal.

 

[DancingBear]

Hello, Sir Galahad, nice to have you back in these parts.

 

[Galahad]

Hello, Sir Galahad, nice to have you back in these parts.

Thank you. I should have been back over here sooner I suppose! My Disney interest had waned for a bit I guess.

 

[YoHo]

I thought that deal was squashed months ago. Guess Disney doesnt want the competition with its DCA department.

No Disney wants Money. Who makes the films really doesn't matter to anyone in managment. And to reiterate, the Deal was squashed a couple months ago, because Steve Jobs has a lower opinion of Micheal Eisner then I do. He refused to work with him.

Iger on the other hand....

 

[Servants of Evan]

Many have reported that one of Iger's high priorities is/was to mend fences with Pixar and work out a new distribution contract. Maybe it'll be possible as Mr. Iger's head will still fit through the door. If it comes to buying Pixar, as a shareholder I'll support it. They have a good product, and have been proven to make money... Besides, if it gets a Buzz & Woody or The Incredibles Character meal at MGM for my son I'll supprt it even more!!!

 

[Mickmse2002]

Let us all join hands and pray this doesn't happen.

Why would this be a bad thing?

 

[YoHo]

Remember a year or two ago when everyone on this board was talking about how renewing with Pixar was a bad idea. Disney could just do it themselves?




Disney would destroy everything good and right about Pixar.

 

[Mickmse2002]

Remember a year or two ago when everyone on this board was talking about how renewing with Pixar was a bad idea. Disney could just do it themselves?




Disney would destroy everything good and right about Pixar.

I'm not sure everyone was saying it was a bad idea. I think the possible terms of renewal was certainly debated. But buying the company is certainly different from renewing a distribution agreement.

 

[raidermatt]

Why would this be a bad thing?

Here's why it could, from Michael Savner, an analyst from Bank of America (not that I'm all that trusting of the judgement of analysts, but in this case, I agree):

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."

In addition to the culture issue, apparently there are others besides just us loons on this board that think Pixar's focus on quality is not shared by Disney at this point in time.

I'm not sure everyone was saying it was a bad idea. I think the possible terms of renewal was certainly debated. But buying the company is certainly different from renewing a distribution agreement.

Basically, what its come down to for some is that if Disney is doing the deal, its a good deal. If they aren't, it was a bad deal.

The problem with this is that its not that simple. Disney NEEDS the content. What many said was that if the distribution deal wasn't favorable enough, no problem, Disney could move forward on their own with their internal operation and do just fine without Pixar.

If Disney is considering paying what they will have to pay for Pixar, then perhaps Disney does not believe moving forward without Pixar is truly a viable option.

 

[Cobra B.]

Remember a year or two ago when everyone on this board was talking about how renewing with Pixar was a bad idea. Disney could just do it themselves?




Disney would destroy everything good and right about Pixar.

If Jobs cared after the sale he wouldn't allow it. At least we wouldn't be force fed Chicken Little and told it's every bit as good as anything Pixar can do. Nice try, but not in the same ballpark (proverbial IMHO insert).