Disney's Iger Says Pixar Deal Unlikely

BRERALEX

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LONDON (Reuters) - Walt Disney Co. President Bob Iger said on Wednesday that a new deal with Pixar Animation Studios was "unlikely," and that the media conglomerate had been approached to buy UK media assets.



Iger said partnerships such as the one Disney had with Pixar to distribute its films often "outgrow one another."


"If it's not Pixar, it will be someone else," Iger told an audience at the Royal Television Society's international conference in London. He said he would not rule out some kind of continuing relationship with Pixar, however.


Earlier this year, Pixar called off talks with Disney to extend its distribution deal, although there has been widespread speculation that the two sides might return to the bargaining table.


"We are not in any discussions with Pixar right now," Iger told Reuters on the sidelines of the conference.


Iger, who has been tagged as a possible successor to Chief Executive Michael Eisner when he steps down in two years, said Disney had been approached to buy UK television channel ITV as well as some assets of the BBC .


He did not specify when the requests were made or if they came from the companies themselves or investment bankers.


The BBC said earlier this month that it had held talks with media companies about its commercial subsidiary BBC Worldwide, but said it had not yet solicited bids for the unit.


"We're professional tire-kickers, we look at everything," Iger told the conference.


Iger said Disney, which historically has extended its brand into Europe rather than buy assets there, did not pursue a possible acquisition of Germany's ProSieben because the deal came up at the wrong time.


He said he thought ProSieben was a strong asset but that Disney at the time was still absorbing its $3 billion acquisition of Fox Family Worldwide.


Disney earlier this week launched its female-targeted, daytime channel ABC1 on UK's Freeview, a digital television service without subscription fees. Iger said there would be no advertising on ABC1 for the first six months as it runs from 6 a.m. to 6 p.m.


The channel is broadcasting older ABC shows such as "Moonlighting," "Home Improvement" and "Sports Night," as well as more recent programs such as the long-running soap opera "General Hospital" and the sit-com "8 Simple Rules."
 
I wonder what affect "The Incredibles" will have on negotiations ? From the little bits & pieces I've heard about the movie I don't think it will do anything close to Nemo numbers.

If TI flops.. or at least flops by Pixar standards does that strengthen Disney's position because it shows Pixar is "human" too ?

If it does Nemo numbers will Disney buckle for any deal Pixar offers ?

I'm curious to know what kind of gamesmanship will be played out with this movie. Is Disney hoping it bombs ? If it does, will Pixar blame Disney for not marketing it properly ? Just Curious.
 
Sounds like more gamesmanship to me. Jobs cut off negotiations, found out the other opportunities weren't so golden, made noises that Pixar might continue with Disney. Now Disney acts like they aren't desparate to renew talks with Pixar. Eisner may be placing his bet against The Incredibles here---but he made that mistake before with Nemo.
 
I'm pretty sure The Incredibles isn't going to flop, even by Pixar standards. But it is interesting to think about what might happen if it does.
 

I'm sure Pixar would love to get Nemo #'s for Incredibles, but it would still have to be considered an undisputed success if it busts $250 million. Anything over that would solidifiy their position as the best in the biz.

$200-$250 million: Still a success. Wouldn't really enhance Pixar's bargaining power, but wouldn't hurt it either.

$150-$200 million: Still a literal financial success, but clearly it would tarnish Pixar's rep. It wouldn't kill their bargaining power, but definitely would take it down a notch.

$100-$150 million: Big disappointment. Big chink in Pixar's armour. Of course, at the same time, it blows holes in the theory that Disney's name is that big a reason for Pixar's success NOW. But clearly Disney, or whoever, would be able to negotiate somewhat more favorable terms. Not anything like the original deal, but still better than what they would have to signup for today.

Under $100 million: Frankly, this movie would have to be complete garbage for this to happen, given the strong opening its practically assured of. Similar to how Disney's follow-up to The Lion King had $100 mil in its pocket before it ever opened. Also very similar to sequels to blockbusters. But still, should it fail to even reach $100 mil, Pixar will be kicking itself for not signing with someone already. (assuming they don't) They'll definitely be poorer for it.
 
I don't disagree Matt, but what does it say if a flick that makes 150-200M tarnishes their reputation? (about the industry at its peripherals in general).
pirate:
 
It can be screwy, to say the least.

But in this case, its just a matter of relativity. Sort of like a baseball player who usually hits 50 hr a year, then hits 30. He's still a heckuva hitter, but relative to everyone else, he doesn't stand out as much.

If he could have signed a contract for $15 mil per year, now it'll be $13. Like Pixar, he wouldn't be hurting, just not quite as well off as he would have been.

The analogy isn't perfect because in baseball, you KNOW that eventually every player's abilities will slide. With filmmaking, nothing is a given. But still, the relativity piece is true enough.
 












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