Eisner says animation studio may still sign a new film deal, despite fact sides are not in talks.
June 2, 2004: 6:44 PM EDT
LOS ANGELES (Reuters) - Walt Disney Co. Chief Executive Michael Eisner Wednesday said there was still a chance for a new film distribution deal with "Finding Nemo" creator Pixar Animation Studios Inc., but noted that the companies were not in talks.
"I will not believe it is over until it is over," he told investors at a conference hosted by Sanford Bernstein and monitored by Webcast.
He said that discussions, broken off in January by computer-animation king Pixar, had not reopened. "No," he said, when asked if talks had resumed.
"We can only make half the deal. I am just an eternal optimist," Eisner said.
Pixar would benefit from Disney's marketing machine, Eisner argued, adding that the two companies would do well to work together to make sequels of previous hits, like "Monsters, Inc." and last year's "Finding Nemo."
Disney distributes and owns rights to films Pixar creates under the current contract, which has two more movies, "The Incredibles" due out late this year and "Cars" next year.
Critics who want to oust Eisner have pointed to the end of the Pixar deal as evidence of Eisner's mismanagement, since Disney stands to lose a partner with an unparalleled box office track record at a time when its own animation department is languishing.
However, Eisner said that Pixar's offer was too expensive.
Pixar Chief Executive Steve Jobs in February said it was very unlikely that talks would resume with Disney, but Pixar also is not hurrying to find a new partner. Jobs said last month that the companies were working together productively on the launch of "The Incredibles" in November.
End of traditional animation
Eisner painted a grim future for traditional, hand-drawn animated fare, known as two dimensional, or 2-D, saying Disney would focus by itself and with others on computer animation, or 3-D.
"The 2-D business is coming to an end, just like black and white came to an end," Eisner said.
The chief executive gave an upbeat report on most Disney businesses, saying sales of advertising for the fall season was "strong" for money-losing network ABC, which aims to make a profit next year, despite some Wall Street skepticism.
Attendance at theme parks had also rebounded as travel anxiety has faded, Eisner said, pointing in particular to international travelers, such as Europeans who were benefiting from the strength of the euro.
Eisner also reveled in Disney's successful rejection of a takeover bid by cable operator Comcast Corp. The fight showed investors the importance of content providers, such as Disney, compared with distributors, like Comcast.
"I don't think we learned any lessons," he said. "The supply and demand side is confirming what we've always known."
He also brushed away a question about whether Mel Karmazin, who is stepping down as president of Viacom Inc. could 'fit in' at Disney.
"If he's a 42-long, extra long, possibly," Eisner told his questioner, quickly adding, "I think we should move on."
June 2, 2004: 6:44 PM EDT
LOS ANGELES (Reuters) - Walt Disney Co. Chief Executive Michael Eisner Wednesday said there was still a chance for a new film distribution deal with "Finding Nemo" creator Pixar Animation Studios Inc., but noted that the companies were not in talks.
"I will not believe it is over until it is over," he told investors at a conference hosted by Sanford Bernstein and monitored by Webcast.
He said that discussions, broken off in January by computer-animation king Pixar, had not reopened. "No," he said, when asked if talks had resumed.
"We can only make half the deal. I am just an eternal optimist," Eisner said.
Pixar would benefit from Disney's marketing machine, Eisner argued, adding that the two companies would do well to work together to make sequels of previous hits, like "Monsters, Inc." and last year's "Finding Nemo."
Disney distributes and owns rights to films Pixar creates under the current contract, which has two more movies, "The Incredibles" due out late this year and "Cars" next year.
Critics who want to oust Eisner have pointed to the end of the Pixar deal as evidence of Eisner's mismanagement, since Disney stands to lose a partner with an unparalleled box office track record at a time when its own animation department is languishing.
However, Eisner said that Pixar's offer was too expensive.
Pixar Chief Executive Steve Jobs in February said it was very unlikely that talks would resume with Disney, but Pixar also is not hurrying to find a new partner. Jobs said last month that the companies were working together productively on the launch of "The Incredibles" in November.
End of traditional animation
Eisner painted a grim future for traditional, hand-drawn animated fare, known as two dimensional, or 2-D, saying Disney would focus by itself and with others on computer animation, or 3-D.
"The 2-D business is coming to an end, just like black and white came to an end," Eisner said.
The chief executive gave an upbeat report on most Disney businesses, saying sales of advertising for the fall season was "strong" for money-losing network ABC, which aims to make a profit next year, despite some Wall Street skepticism.
Attendance at theme parks had also rebounded as travel anxiety has faded, Eisner said, pointing in particular to international travelers, such as Europeans who were benefiting from the strength of the euro.
Eisner also reveled in Disney's successful rejection of a takeover bid by cable operator Comcast Corp. The fight showed investors the importance of content providers, such as Disney, compared with distributors, like Comcast.
"I don't think we learned any lessons," he said. "The supply and demand side is confirming what we've always known."
He also brushed away a question about whether Mel Karmazin, who is stepping down as president of Viacom Inc. could 'fit in' at Disney.
"If he's a 42-long, extra long, possibly," Eisner told his questioner, quickly adding, "I think we should move on."
