Does Disney Buy Pixar?

[Woody13]

Friday, Jan 20
LAT: Disney board's decision on Pixar buy to come on Monday

Having sort of broken the Pixar sale to Disney story, then missed the follow-up, the Los Angeles Times today insists we'll have an answer by Monday.


The LAT also takes care to note they got there first, while still giving the Journal its due:

"The Times reported Jan. 5, however, that recent negotiations had expanded to include the possibility of Disney's acquiring part or all of Pixar, with Jobs taking a seat on the Burbank company's board and becoming a major shareholder. A report in Thursday's Wall Street Journal that the talks had intensified further fueled speculation that a deal was imminent, sending Disney's stock higher, up $1.04 to $26.24. Pixar shares rose $1.61 to $58.87."
​

Personally, I can't wait to see what happens when "Cars" comes out and does so badly, it makes "Treasure Planet" seem like "The Incredibles."

 

[Connor002]

Personally, I can't wait to see what happens when "Cars" comes out and does so badly, it makes "Treasure Planet" seem like "The Incredibles."

I'm not looking foreword to that, I have a bad feeling PIXAR is going to understand what it feels like to have a complete flop soon...

 

[Rayray]

You find this to be a problem? I don't. Apple has always prided itself on high quality products and presentation. That is why they have done so well in the last 8 years. The same way people used to consider Disney. Rayray, my friend, this would be nothing but good for Disney. Get them back to their roots of what got them there and not worry about the nickle and diming everything to death.

As for marketing Apple, nothing wrong with marketing a high quality product. I can see when they convert SSE to Time Racers that a bite will be taken out of the ball to reflect Apple's sponsorship of the ride.

I don't question the quality of Apple or Steve Job's work. I only wonder if this is a compatible merger. I worry that Disney parks could become iPod this and Macintosh that. Another worry that I have is that Steve Jobs would be too busy. He already is the CEO of a large company. Is he versitile enough to handle Apple, a position on the Board of Dir., and try to keep his eye on Pixar?

The deal could work. I just don't know if it would maximize Disney's potential for quality.

 

[Woody13]

Pixar Board Will Aprove Disney Takeover

Jobs to scoop $3.5bn as Pixar board approves Disney takeover

By Andrew Murray-Watson (Filed: 22/01/2006)

The board of Pixar Animation Studios, the digital animations company, is set to meet tomorrow to approve the company's $7bn (£3.9bn) takeover by Disney.

The all-share deal will make Steve Jobs, the chief executive of Apple, around $3.5bn and the single largest shareholder in Disney. Jobs created Pixar in 1986 when he paid $10m for the computer animations division of Lucasfilm, owned by Stars Wars creator George Lucas.

Disney has struggled to compete with its rival's cutting-edge computer animated films, which have become increasingly sophisticated over the past few years.

Disney already has a distribution agreement with Pixar, which is due to expire in June. Pixar's summer blockbuster is a film called Cars, while its previous hits include A Bug's Life, Finding Nemo, Monsters, Inc, Toy Story and The Incredibles.

Disney's first computer--generated film, Chicken Little, was released in the US in November and currently has worldwide box office sales of $279m.
But the giant entertainment company has failed to produce a hit animated film of its own in years. By contrast, the six films that Pixar and Disney have made together since the 1995 release of Toy Story have grossed more than $3.2bn.

Despite the impending takeover of Pixar, Robert Iger, the chief executive of Disney, pledged in November that "animation is, and will remain, at the heart and soul of Disney".

 

[Connor002]

Wow... I can't believe this is actually coming to be.

 

[Computer Magic]

I think I will muddy the waters here and say this has been a long term plan.

Now I know Woody won't like this, but I'll throw out a Oliver Stone Kennedy theory :lookaroun

Wasn't Steve a top pick of Roy Disney to replace Eisner? So isn't some way this is a win for Roy? Maybe it has been in the works for some time. Maybe that is why Roy called a truce?

Roy in some way is getting what he wanted....First Eisner now Jobs.

Comon is it that fair streeched?

:wave:

 

[Woody13]

Actually, I welcome the deal. Jobs will be on the board (perhaps the chairman) and he will be the biggest single shareholder. However, he won't be involved in operations. Just as Sid Bass allowed Eisner to build Disney, I think that Jobs will encourage Iger to do the same.

Jobs will only be involved in governance issues. John Lasseter will be head of Disney Animation (in operations). So this is a very good deal IMO.

Now, Roy wanted to make Jobs the Disney CEO! That was a bad idea. Let Jobs play with his computers and iPods in Cupertino.

 

[Computer Magic]

Actually, I welcome the deal. Jobs will be on the board (perhaps the chairman) and he will be the biggest single shareholder. However, he won't be involved in operations. Just as Sid Bass allowed Eisner to build Disney, I think that Jobs will encourage Iger to do the same.

Jobs will only be involved in governance issues. John Lasseter will be head of Disney Animation (in operations). So this is a very good deal IMO.

Now, Roy wanted to make Jobs the Disney CEO! That was a bad idea. Let Jobs play with his computers and iPods in Cupertino.

My comment was more towards I didn't think you were a Roy Disney fan. :wave:

I welcome the deal as well. I think Roy wanted two people to run Disney like Eisner and Wells did so well in the 90's.

It's too soon to tell, but just maybe we will have a duo again. :sohappy:

 

[jakeman]

...Or we'll have to destroy our copy of Windows and swear allegiance to the iPod before entering the Magic Kingdom from now on....:lol:

 

[Woody13]

January 24, 2006

<NYT_HEADLINE version="1.0" type=" ">Disney Bid for Pixar Is Imminent </NYT_HEADLINE>

<NYT_BYLINE version="1.0" type=" ">By LAURA M. HOLSON and ANDREW ROSS SORKIN

</NYT_BYLINE><NYT_TEXT>LOS ANGELES, Jan. 23 - The Walt Disney Company is planning to announce as early as Tuesday the acquisition of Pixar Animation Studios in a stock transaction valued at about $7 billion, people briefed on the negotiations said Monday night.

Disney's directors voted to give the chief executive, Robert A. Iger, the authority to offer the chief executive of Pixar, Steven P. Jobs, about $59 a share to acquire the company, these people said.

Disney's negotiators were then expected to approach their counterparts at Pixar on Tuesday to try to determine the price. Pixar's board is to vote on the acquisition soon after that, these people said.

A Disney spokeswoman declined to comment; calls to Pixar were not returned.

All of the people briefed on the negotiations cautioned that the deal could fall apart at any time.

"This is tricky," one said. "All of the things have to be just right."

Several crucial details were still being hammered out Monday, including the employment contracts for certain Pixar executives, among them John Lasseter, Pixar's chief creative officer and a former animator at Disney, one person said. He is expected to oversee the animation unit that would become part of Disney's filmed animation division.

The deal would combine Pixar with Disney's animation unit and give Mr. Jobs a seat on Disney's board.

Two years ago Disney and Pixar began renegotiating a distribution agreement that would have given Disney the right to distribute Pixar's films after the release of the forthcoming "Cars." (The two jointly produce Pixar movies although Disney owns the rights. The agreement ends after "Cars.")

At that time, as with these talks, price was an issue. In 2004, Mr. Jobs was demanding that Disney share rights to the movies that Pixar had yet to make, including "The Incredibles," which was released in 2005, as well as "Cars." But Disney, which owned all of the rights to these movies, did not want to give them up.

Pixar, based in Emeryville, Calif. has grown to hundreds of employees from about 44 in 1986, two years after Mr. Jobs acquired the company from the director George Lucas for $10 million. Pixar and DreamWorks Animation have led the way in computer animation for films.

Last year, talks about renewing the distribution deal with Pixar arose again after Mr. Iger was named chief executive of Disney. Mr. Iger began thinking about the acquisition last fall when it became clear to him that distribution alone would not add much value to Disney over all, said a person who discussed the matter with the Disney chief.

Disney's own animation division lagged behind its peers, and Mr. Iger made it a priority to improve its operation.

Animation is essential to Disney's success because it provides the characters that drive the company's theme parks, consumer products and cable television programs. In recent years, Pixar has become a steady supplier of such characters.

 

[Dizparks]

I just saw that article on Google, I'm getting so excited. :sohappy:

 

[Shaman]

Disney board OKs Pixar offer: source
Pixar's board will consider the offer on Tuesday, Reuters reports.
January 24, 2006: 3:05 AM EST

<!--startclickprintexclude-->
<!-- CONTENT --><!--endclickprintexclude--><!--startclickprintexclude--><!--endclickprintexclude-->NEW YORK (REUTERS) - The board of Walt Disney Co. has authorized Chief Executive Robert Iger to make an offer to buy Pixar Animation Studios Inc. and is expected to do so by Tuesday, a source familiar with the matter said late on Monday.

<!--startclickprintexclude--><!--endclickprintexclude--><SCRIPT language=JavaScript><!--var clickExpire = "02/23/2006";//--></SCRIPT>Pixar's board is expected to consider the offer on Tuesday as well, said the source, who did not disclose financial terms.
<!--startclickprintexclude--><TABLE style="PADDING-LEFT: 10px" cellSpacing=0 cellPadding=0 width=220 align=right border=0><TBODY></TBODY></TABLE><!--endclickprintexclude-->Pixar (Research) shares closed at $58.27 on Monday on Nasdaq, putting its market value at just under $7 billion. The shares have risen about 12 percent in the last month, partly on speculation that Disney (Research) would buy the computer animation company behind such hits as "Toy Story," "Finding Nemo" and "The Incredibles."

<!--startclickprintexclude--><!--endclickprintexclude-->The Wall Street Journal has reported that Disney is considering an all-stock offer, which would make Pixar Chief Executive Steve Jobs its largest individual shareholder.

<!--startclickprintexclude--><!--endclickprintexclude-->The Journal reported late on Monday that the offer under consideration would give Jobs, who has a controlling stake in Pixar, a set on the Disney board.

<!--startclickprintexclude--><!--endclickprintexclude-->Disney shares closed 0.78 percent lower at $25.52.

 

[swordsman_24]

Business Week Article Link

This should be a fun ride. As a Pixar shareholder I'm hoping that this means more access to Disney properties that will allow the animators to give us even more exciting story driven beauty. As Walt knew and many Disney movies as of late seem to have forgotten "Its the story stupid." Good luck to all and it should be a fun day in the market. http://yahoo.businessweek.com/technology/content/jan2006/tc20060124_959402.htm

 

[Computer Magic]

Here is my only concern about the purchase:

But other analysts warned of a possible culture clash between the famously inclusive culture at Pixar, where even junior animators can have their say in how scenes are created, and Disney's hierarchical management structure. "Integration could be the largest risk for Disney in acquiring Pixar," SG Cowen & Co analyst Lowell Singer wrote in a note last week.

 

[GrimGhost]

Here is my only concern about the purchase:

I don't think you should worry. Lasseter will run the Animation Division of the Disney-Pixar combination.

All articles I have read out there point to that being a critical component

 

[Computer Magic]

I don't think you should worry. Lasseter will run the Animation Division of the Disney-Pixar combination.

All articles I have read out there point to that being a critical component

As long as there is a contract. Remember Lasseter left Disney because of Disney micro management.

Don't get me wrong, I love this idea. But for it to work Disney needs to allow the animation division to be creative.

Don't try to force the profits, profits will come natually by creative ideas.