Disney's Iger says Pixar deal unlikely

[cherrynegra]

Disney's Iger says Pixar deal unlikely
By Jon Friedman, CBS.MarketWatch.com
Last Update: 9:53 AM ET Sept. 29, 2004

NEW YORK (CBS.MW) -- Walt Disney Co. President Robert Iger said Wednesday that there probably will not be a new deal between his company and Pixar Animation Studios.

Iger was quoted by Reuters as saying in London that partnerships, like the Disney-Pixar arrangement, "outgrow one another."

When negotiations between Disney (DIS: news, chart, profile) and Pixar (PIXR: news, chart, profile) collapsed about a year ago, Disney CEO Michael Eisner was criticized by dissident shareholders for letting the deal die. Pixar contributed to Disney's reputation with such blockbusters as the "Toy Story" film franchise. Disney distributed the movies.

For Iger, the declaration comes at a momentous time.

Eisner, who has headed the entertainment behemoth since 1984, said earlier this month that he'll step down as CEO in 2006.

Iger has made no secret of the fact that he wants to succeed his boss, but his tenure as the head of ABC, Disney's most troublesome subsidiary, has drawn criticism from Wall Street.

Disney, a Dow Jones Industrial Average component, saw its stock rise 2 cents to $22.62 in Wednesday morning trading.

 

[DisneyFan 2000]

Well, his announcement sure didn't make things any better...

 

[cherrynegra]

Well, for someone who wants the top post, you'd think he'd say something positive or reconcilatory. Sigh, looks like it's going to be more of the same old crap if he gets the job.

 

[wannab@dis]

I just don't get it. What are they thinking?

"Outgrow one another"

I can't believe that he could say that. Even if Disney doesn't get any of the movie earnings, they would still make more on merchandising of a Pixar movie than on the combined box office and merchandise of their recent attempts.

His attitude is very revealing on this topic. I assume they could "outgrow" theme parks as well? Golden idea... Maybe they should buy another network!

Geez. :fork:

 

[GaryT977]

Just another reason not to let him replace Eisner. I remember reading an article a couple of weeks back that Jobs would look at renewing the Disney/Pixar deal once Eisner was gone.

BTW - I don't understand why this guy is under consideration, considering the miserable job he's done with ABC.

 

[General Grizz]

Iger and Eisner need to join Mr. Toad in Disney Mania Jail. . .

 

[MouseRight]

There are a couple of dynamics going on here.

One - if the deal is dead and it may well be (Forget about who caused it to die) Disney has to tell Wall St, teh Cast Members and the public. This takes care of that.

Two - These types of coporate negotiations sometimes need some publicity and public disclosure to push buttons on the other side. Since all of you have no idea what is going on in these negotiations, it is entirely possible that Pixar is being the jerk here and Iger is trying to put some public pressure on them.

I am not in agreement with all of you that Disney is teh only bad guy here. Much of what I have read about this supports the theory that Jobs' ego and desire to take his characters and run is as much a part of the situtaion as Disney's desire to get a better deal out of Pixar. I personnaly believe that Disney needs to make this break and do it the way Disney can and become the animation powerhouse that it can and should be. The Pixar deal caused and will continue to cause the Mouse to lose focus on its own anaimation efforts. Teh Mouse should do its own and will do it once they go cold turkey from Pixar.

 

[cherrynegra]

Disney and Pixar break off engagement

Staff and agencies
Thursday September 30, 2004

The Walt Disney president, Robert Iger, has said it is "unlikely" his studio will renew its distribution deal with the Pixar animation studio.

The current deal between the two companies - which has borne such acclaimed and profitable fruit as the Toy Story movies, Monsters Inc and Finding Nemo - is due to expire at the end of next year.

Many industry commentators have felt the company owed a great deal to Pixar for bringing it a series of commercially successful and critically acclaimed films at a time when its studio arm has appeared somewhat beleagured. However talks between the two companies over a new deal broke off earlier this year and the animators are currently believed to be meeting with other studios.

Now Iger appears to have all but confirmed the impending split. Speaking at the Royal Television Society annual conference in London, the Disney president told his audience that the partnership between the two companies seemed to be winding down.

"It would be nice to continue the relationship to infinity," he said. "But I think we've outgrown one another in a sense."

Pixar's last film under the distribution deal with Disney is Cars, which will be delivered next year. Iger is one of the frontrunners to succeed Disney chief executive Michael Eisner when he retires in 2006.

 

[GaryT977]

it is entirely possible that Pixar is being the jerk here and Iger is trying to put some public pressure on them.

I am not in agreement with all of you that Disney is teh only bad guy here. Much of what I have read about this supports the theory that Jobs' ego and desire to take his characters and run is as much a part of the situtaion as Disney's desire to get a better deal out of Pixar.

You're entitled to your opinion, obviously, and I know there's alot of anti-Jobs sentiment out there, but IMHO Disney is the heavy on this one. Pixar signed their deal with Disney when they were an unknown, and as such Disney got a sweetheart of a deal. Now that Pixar is a known quantity and the original deal is ending, Disney wants the same type of deal as before, Pixar doesn't. Just as one example, in the original deal, Disney has the rights to make sequels to Pixar movies.

When you think of all that Disney has gotten from their deal with Pixar; The money from the distribution of their movies, DVD sales, character merchandising, theme park attractions, etc, you would think they would try harder to save this deal. Especially when you contrast the performance of the Disney Animation Studios vs Pixar over their lifespan.

You say it's Jobs' ego, but IMHO, this one falls on Eisner.

 

[MouseRight]

You're entitled to your opinion, obviously,....... You say it's Jobs' ego, but IMHO, this one falls on Eisner.

As in any relationship and divorce, there are two sides to every story. Your posts shows only the Pixar side. I have read some accounts that point out that both sides are being stubborn in these negiatiations. Jobs wants a simple distribution deal that he can get from any distributor. Disney wants more than that. On top of this, both egos are playing into the equation.

Why shouldn't Disney demand and get a little more than Jobs wants them to in this deal. After all this is business and since Disney took enormous risks in the beginnig of and during this deal, it should get a little more than others would. There is no argument from me that Disney has benefited from Pixar. However, your post forgets the other side. No other distributor could have done for Pixar what Disney did. Pixar would be no where without Disney's distribution, marketing (which includes character merchandising and theme park attractions), and other support (I still believe that Disney played more of a role in story lines and development of the characters than Pixar wants to admit) they got from Disney.

More importantly and maybe because I am "Disney" fan, I don't think Disney needs this deal. Everyone agrees that Disney has to rebuild its animation efforts. Making a deal with Pixar will only allocate resources (money, time, marketing efforts, and motivation) away from that effort. They should go it alone and do what Disney has always done best. If they do this, they will leave Pixar in its dust.

Finally, Jobs and everyone else should get over this sequel thing. Sequels are part of the entertainment business and, when done right, are an effective strategy to build an audience, market characters and (dare I say it) - Make Money. Jobs didn't mind raking in the cash from Toy Story II when he needed the money to build his business. My prediction - Pixar will make sequels to their movies after the Disney deal is done because their new distributor (Note I didn't say Partner) and their stockholders will demand them.

 

[GaryT977]

Well, we're just going to have to agree to disagree on this one. I know Jobs is one of those polarizing figures, and engenders passionate responses from both sides of any argument. I really think that allowing this deal to fall through is a mistake for both companies, and that's a real shame.