Pixar Ready to Talk

[Sarangel]

This will be Iger's first real challenge:

Pixar Animation Studios Inc is ready to resume talks about a distribution deal with Walt Disney but also with other firms, its co-founder and president, Ed Catmull, was reported saying in a newspaper interview published on Thursday.
The two companies have been expected to reopen talks now that Disney CEO Michael Eisner is set to depart in September.

Eisner, who will be replaced by Disney President Robert Iger, was seen as the main stumbling block for Disney to renew its partnership with Pixar because of his turbulent relationship with Pixar Chief Executive Steve Jobs.

"We have always said that we were waiting for the changes at the helm of the (Disney) group before taking a decision," Catmull told French daily Les Echos.

"Now that it's done and that there will be a new CEO in September, we will resume negotiations with Walt Disney, but also with other market players," he said.

Pixar produced such blockbuster films as "Toy Story," "Finding Nemo" and "The Incredibles" in its partnership with Disney.

Pixar's partnership with Disney expires with the June 9, 2006, release of its seventh film, "Cars," and it must have a new distributor in place before its eighth film is released in summer of 2007.

 

[raidermatt]

Two things:

1- It seems pretty clear that Eisner really was a big enough problem to potentially kill the relationship.

2- The "other firms" comment is probably mostly an attempt to gain leverage. It seems pretty clear Pixar WANTS to stay with Disney. That's not to say its "in the bag", but it looks like Iger has a golden opportunity to gain some Street cred.

 

[Plus4206]

While I'd like to see an agreement worked out between Pix & Dis, I don't want Dis to give away the farm in order to do the deal & I don't want them to abandon their own in-house program.

 

[raidermatt]

Its a tough situation.

If Disney had maintained its position as the industry's leader, or at least co-leader, it wouldn't be such a quandry.

But they're so far gone right now, its hard to say what they should do.

Actually, its easy to say they should continue in-house animation and make it the best out there. But that's what's been said for years now, and it hasn't happened. In fact, things have gotten worse. The unit most capable of telling a decent story was shuttered, and the company has blamed the medium (2D) for its overall woes.

Meanwhile, Pixar had gained significant leverage, meaning that if Disney wants to re-sign, they're going to at least have to give up some real acreage, if not the whole farm.

Disney needs to be a creative force to really be the Disney that brought us together on boards like this. If they are not, then we are left to discuss what kind of distributorship deal they should sign with the real creative companies. While that's important to the company financially, it isn't exactly the kind of "Magic" we really want to key on, is it?

 

[Plus4206]

Building a new theme park can take years to complete. Rebuilding FA seems as if it could be done almost overnight. I know that sounds ridiculess and honestly I know I'm oversimplfying the process but FA comes down to having talented people and the right equipment. Equipment is easy. They probably still have all they need and can easily purchase whatever is needed. Pixar does not have a technological advantage any longer. The talent is also out there. Find the right people and let them create. If the talent stayed away from DFA because of ME, hopefully Iger can mend those fences. Let's face it, if Lassiter walked into Igers office and said " I'm Baa-ack" , I think we'd all be pretty confident DFA would also be on top again with its next release. Bottom line is, I think DFA could be turned around very quickly.

 

[DancingBear]

Lasseter's under contract. Hire Brad Bird.

 

[raidermatt]

Yes, Lasseter is definitely under contract. Not sure what Bird's status is.

Plus4206, I know it sounds simple, but if it were, everybody would do it. Its not just a matter of mending fences. Eisner's personality was more the icing on the cake. The real problem has been the business methods, the philosphy, if you will.

Find the right people and let them create is the basic plan, but is Iger really planning to follow that plan? Or will he be content to "capitalize on the brand" by outsourcing?

Committing to FA is risky in the short term. Why spend millions re-building and recruiting when you can let companies like Pixar do most of the work, and then charge them to use the Disney name?

Obviously you know I don't believe that's the right way to go, but I haven't heard of anything that indicates Iger feels that way.

Yes, we've heard Iger is better at letting people do their jobs, but that doesn't mean he wants Disney to really commit to the business of being the best animated studio in the world.

In other words, its nice that he is (apparently) easier to work with than Eisner, but what is his strategic vision? Does he REALLY believe its in Disney's best interests to invest in homegrown animation to the extent necessary to at least equal what Pixar has done?

 

[dturner]

I think it's time to buy some Pixar stock --- just think IF they successfully stay with Disney their stock will go up - at least I'm hoping so, I'm buying some today.

 

[mickeyfantroy]

I've heard from an inside source that what Pixar wants is a 'sweetheart' distribution deal. Something like George Lucas has with Fox whereas all Fox does for Star Wars is handle the distribution. But George retains all ownership and copyrights. It will be interesting to see if anyone gives them such a deal now that Pixar is well known and popular. When George made his deal who would have imagined what Star Wars would become? I have heard that sales reps for Fox hate Star Wars because they have to sell and maintain displays in stores but make little or no commission.