Forbes - New Disney Studio Would Be Negative For Pixar

MouseRight

MouseRight

Active Member
Original Poster
From Forbes. Looks like the Dsiney/Pixar Dance Continues.

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New Disney Studio Would Be Negative For Pixar
02.02.05, 12:34 PM ET

Banc of America Securities reiterated a "neutral" rating and $76 target price on Pixar Animation Studios (nasdaq: PIXR - news - people ). The research firm said reports have surfaced that The Walt Disney Co. (nyse: DIS - news - people ) is building an animation studio to create sequels to Pixar films. "If true, we would view this as an incremental negative for Pixar," Banc of America said. The research firm said the Pixar brand could experience some erosion if the films are poorly done. In addition, the creation of such a studio would signal that Disney and Pixar are unlikely to reconcile their relationship. Banc of America estimates Pixar is entitled to receive 7% to 10% of gross revenue on all sequels produced by Disney. "We estimate that three sequels produced over a three year period beginning in 2008 would increase Pixar's value by approximately $1.50 per share," Banc of America said. The research firm said it remains skeptical that Disney will move forward with its plan for theatrical sequels of Pixar films.
 
MouseRight

MouseRight

Active Member
Original Poster
My view is a little different. I think his is all part of the dance bewteen Disney and Pixar to get back together. Think of a boxing or wrestling match. The two dance around in circles lloking for an advantage to step in and hit or make a move.

This is similar and is common in busines negotiations. They dance around, then Pixar says they are pulling out, they dance some more then Disney says they will go it alone. Tehy dance some more, Pixar announes they are lookig for a new partner. Tehy dance some more and Disney announces they are going to make sequels (Soild punch to Jobs who suppossedly hates them).

Come on, all of thsi is playing out in teh press. Jobs could have made a deal by now with any other studio. Fact is they both want each other and are waiting for the other to blink. Jobs thouht he had Disney last year when things started to look bleak. Now Disney is back on the rise and he still needs them. Disney needs Pixar, and have tagged team Iger into the ring to bring it home.

My bet. This deal will be done as soon as a new CEO is announced and everyone can save face.

Putting aside the personalities, the deal won't get done unless both sides can agree to a resaonable compromise which recognizes both sides' contributions to the success of the Pixar movies to date.
 

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