Disney plans sequels to Pixar films
Walt Disney Co. plans to produce sequels to hit movies made by Pixar Animation Studios Inc., even though the Emeryville company has characterized Disney's earlier work in this area as "embarrassing."
Disney outlined its plans during a two-day meeting with investors and Wall Street analysts at Walt Disney World in Orlando, Florida. In a presentation, Walt Disney Studios Chairman D ick Cook said the company will evaluate the library of Pixar films, including the "Toy Story" movies as well as "A Bug's Life," Monsters Inc." and " Finding Nemo," all of which were enormous box-office successes.
First up will be a third theatrical sequel to "Toy Story." Cook did not disclose plans for the others, although he did not rule out producing direct-to-video sequels. These are typically more profitable but considered lower-quality compared theatrical releases.
"We will nurture and grow these franchises with new stories," Cook said in his presentation.
This move is unlikely to please the folks at Pixar, which still has two more films to complete under its current distribution deal with Disney. Pixar announced on Jan. 29 that it broke of talks with Disney for a new deal after being unable to come to agreement on terms for ownership and profit-sharing for future films.
In an earnings call the following week, Pixar CEO Steve Jobs said it offered Disney a deal less valuable than it could have received from other Hollywood studios, but the company refused. Pixar also said it ruled out doing a "Toy Story 3" - under the companies' current arrangement, sequels to movies covered in the deal do not count towards Pixar fulfilling its end of the deal.
"We have not said no to anything else yet, and we will be discussing that amongst ourselves and with Disney over the next several months," Jobs said during the call. "And we feel sick about Disney doing sequels because if you look at the quality of their sequels, like the Lion King 1.5 and their Peter Pan sequels and stuff, it's pretty embarrassing."
For its part, Cook said Disney refused Pixar's offer because such a deal would not have been good for Disney shareholders. He added that Pixar's offer "didn't recognize the value we brought to the partnership."
© 2004 American City Business Journals Inc.
Walt Disney Co. plans to produce sequels to hit movies made by Pixar Animation Studios Inc., even though the Emeryville company has characterized Disney's earlier work in this area as "embarrassing."
Disney outlined its plans during a two-day meeting with investors and Wall Street analysts at Walt Disney World in Orlando, Florida. In a presentation, Walt Disney Studios Chairman D ick Cook said the company will evaluate the library of Pixar films, including the "Toy Story" movies as well as "A Bug's Life," Monsters Inc." and " Finding Nemo," all of which were enormous box-office successes.
First up will be a third theatrical sequel to "Toy Story." Cook did not disclose plans for the others, although he did not rule out producing direct-to-video sequels. These are typically more profitable but considered lower-quality compared theatrical releases.
"We will nurture and grow these franchises with new stories," Cook said in his presentation.
This move is unlikely to please the folks at Pixar, which still has two more films to complete under its current distribution deal with Disney. Pixar announced on Jan. 29 that it broke of talks with Disney for a new deal after being unable to come to agreement on terms for ownership and profit-sharing for future films.
In an earnings call the following week, Pixar CEO Steve Jobs said it offered Disney a deal less valuable than it could have received from other Hollywood studios, but the company refused. Pixar also said it ruled out doing a "Toy Story 3" - under the companies' current arrangement, sequels to movies covered in the deal do not count towards Pixar fulfilling its end of the deal.
"We have not said no to anything else yet, and we will be discussing that amongst ourselves and with Disney over the next several months," Jobs said during the call. "And we feel sick about Disney doing sequels because if you look at the quality of their sequels, like the Lion King 1.5 and their Peter Pan sequels and stuff, it's pretty embarrassing."
For its part, Cook said Disney refused Pixar's offer because such a deal would not have been good for Disney shareholders. He added that Pixar's offer "didn't recognize the value we brought to the partnership."
© 2004 American City Business Journals Inc.
