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CEO Jobs says Pixar in demand, jabs Disney over breakup
Thu Feb 5, 7:53 AM ET
By Michael McCarthy, USA TODAY
Steve Jobs (news - web sites), chairman and chief executive of Pixar Animation Studios, said Wednesday that at least four studios are seeking to replace Walt Disney as Pixar's distribution partner. Jobs last week broke off talks to extend their current deal, which runs to 2006.
Jobs said the maker of animated films such as 2003 box office champ Finding Nemo is in demand because, in his view, it has supplanted Disney as the No. 1 name in animation. And he said it's "very unlikely" Pixar and Disney will resume talks.
Pixar will begin talks with suitors in March and hopes to have a deal in place by fall. He would not name the interested studios.
Pixar is Hollywood's most-wanted free agent, said Paul Kim, media analyst at Tradition Asiel Securities. "Every major studio is dying for this business."
During the call with analysts, Jobs went out of his way to tweak Disney and its chairman and chief executive officer, Michael Eisner:
Jobs described Disney's last few animated efforts as "bombs." He downplayed Disney's vaunted marketing expertise, saying no amount of skillful marketing can "turn a dud into a hit."
With Disney controlling the rights to make sequels for the five films they made together and two still to come, Jobs said he's "sick" about the prospect. The quality of Disney sequels, such as for its blockbuster The Lion King is "pretty embarrassing," Jobs said.
Jobs said Pixar is now the "most powerful and trusted brand in animation." For evidence, he said to compare Pixar's last three films with recent Disney films.
As one reason for the breakup, Jobs quoted a press article in which Eisner allegedly predicted Nemo would flop and that the failure would give him leverage over Jobs in renegotiating their deal.
Jobs seemed to side with former Disney board members Roy Disney and Stanley Gold, saying that he and Pixar creative chief John Lasseter, a former Disney animator, admire the "original" spirit of Disney rather than its current spirit. Gold said Wednesday: "The creativity that Steve Jobs and John Lasseter have produced at Pixar is clearly what is missing and needed at Disney."
In a statement, Zenia Mucha, Disney senior vice president, took exception to Jobs' remarks. "It is unfortunate that Steve Jobs has grossly mischaracterized good faith negotiations to reach agreement on an extension of the present, successful partnership that has been beneficial to shareholders of both Pixar and Disney. It's also sad and unfortunate that he has resorted to insults and name-calling in the wake of the disagreement. We expected better of him."
Jobs made his remarks in a conference call following Pixar's earnings release after the market close. Fueled by DVD sales of Nemo, net income in the fourth quarter rose to $83.9 million, or $1.44 per share, from $17 million, or 31 cents, in the period a year ago.
After dropping 66 cents to close at $63.54, Pixar shares rose $1.20 to $64.74 in after-hours trading.
Thu Feb 5, 7:53 AM ET
By Michael McCarthy, USA TODAY
Steve Jobs (news - web sites), chairman and chief executive of Pixar Animation Studios, said Wednesday that at least four studios are seeking to replace Walt Disney as Pixar's distribution partner. Jobs last week broke off talks to extend their current deal, which runs to 2006.
Jobs said the maker of animated films such as 2003 box office champ Finding Nemo is in demand because, in his view, it has supplanted Disney as the No. 1 name in animation. And he said it's "very unlikely" Pixar and Disney will resume talks.
Pixar will begin talks with suitors in March and hopes to have a deal in place by fall. He would not name the interested studios.
Pixar is Hollywood's most-wanted free agent, said Paul Kim, media analyst at Tradition Asiel Securities. "Every major studio is dying for this business."
During the call with analysts, Jobs went out of his way to tweak Disney and its chairman and chief executive officer, Michael Eisner:
Jobs described Disney's last few animated efforts as "bombs." He downplayed Disney's vaunted marketing expertise, saying no amount of skillful marketing can "turn a dud into a hit."
With Disney controlling the rights to make sequels for the five films they made together and two still to come, Jobs said he's "sick" about the prospect. The quality of Disney sequels, such as for its blockbuster The Lion King is "pretty embarrassing," Jobs said.
Jobs said Pixar is now the "most powerful and trusted brand in animation." For evidence, he said to compare Pixar's last three films with recent Disney films.
As one reason for the breakup, Jobs quoted a press article in which Eisner allegedly predicted Nemo would flop and that the failure would give him leverage over Jobs in renegotiating their deal.
Jobs seemed to side with former Disney board members Roy Disney and Stanley Gold, saying that he and Pixar creative chief John Lasseter, a former Disney animator, admire the "original" spirit of Disney rather than its current spirit. Gold said Wednesday: "The creativity that Steve Jobs and John Lasseter have produced at Pixar is clearly what is missing and needed at Disney."
In a statement, Zenia Mucha, Disney senior vice president, took exception to Jobs' remarks. "It is unfortunate that Steve Jobs has grossly mischaracterized good faith negotiations to reach agreement on an extension of the present, successful partnership that has been beneficial to shareholders of both Pixar and Disney. It's also sad and unfortunate that he has resorted to insults and name-calling in the wake of the disagreement. We expected better of him."
Jobs made his remarks in a conference call following Pixar's earnings release after the market close. Fueled by DVD sales of Nemo, net income in the fourth quarter rose to $83.9 million, or $1.44 per share, from $17 million, or 31 cents, in the period a year ago.
After dropping 66 cents to close at $63.54, Pixar shares rose $1.20 to $64.74 in after-hours trading.
