As The Incredibles opens Nov. 5, there's hope for a post-Eisner reconciliation.
By Claudia Eller | Los Angeles Times
Posted October 17, 2004
HOLLYWOOD -- In The Incredibles, next month's computer-animated offering from Pixar Animation Studios and Walt Disney Co., a bored superhero with a bulging waistline springs back from retirement to save the world.
For the two companies, rescuing a planet seems a snap compared with saving a relationship that began imploding in January when talks over renewing their partnership collapsed. But with that deal nearing doomsday, there are flickers of optimism that one of Hollywood's most successful collaborations may be salvaged.
Opening Nov. 5, The Incredibles marks the next-to-last film under the Pixar-Disney partnership that is set to end with the release of its next movie, Cars, in November 2005.
To date, the two companies have joined forces on five consecutive digitally animated hits: two Toy Story films, Monsters, Inc., A Bug's Life and Finding Nemo. Those movies are expected by analysts to ultimately generate more than $3 billion in total profit, split between the two sides.
Despite those successes, Pixar chief executive Steve Jobs walked away in frustration from negotiations that would have extended the 13-year relationship. The talks had dragged on for nearly a year as Disney CEO Michael Eisner refused to agree to some of Jobs' more aggressive demands -- notably that Pixar would retroactively own all the movies and control sequels, if they were made.
The personal animus between Jobs and Eisner is widely thought to have played a central role in the dissolution of the partnership.
However, the Disney chief has announced that he would leave the company when his contract expires in 2006.
Although many on Wall Street remain convinced that reconciliation is a lost cause, others close to both parties hold out a glimmer of hope now that Eisner is leaving. Disney's board is expected to identify a successor by June.
People close to Jobs say he would be open to resuming talks with Eisner's successor.
"It's fair to say that given the successful partnership, investors would be happy if these two companies came together," said Lowell Singer of SG Cowen & Co. "I think Eisner's impending departure keeps the door open for that possibility."
In an interview, Jobs would not answer questions about the Disney-Pixar disagreements. He said the companies were focused for now on making The Incredibles a success. He did, however, note that yet another Pixar hit would open up even more opportunities for the Emeryville, Calif.-based company.
"Pixar is lucky enough to be five-for-five," Jobs said. "If Incredibles makes that six-for-six . . . it gives us wonderful options to work with all sorts of people."
With $755 million in cash and no debt, Pixar is poised to finance its own movies and reap the profits, paying a studio a fee to distribute the movies in theaters and on DVD. Another hit would give Jobs even more leverage with Disney or any replacement studio.
At Disney, some executives aren't ready to concede defeat.
"I would love to think it's never over until it's over," Disney studio Chairman ________ Cook said.
Disney President Robert Iger, however, recently sounded resigned when asked about Disney's future with Pixar.
"It would be nice to continue that relationship into infinity, but . . . I think we outgrow one another in a sense," Iger said. "And while I'm not ruling out some continuation, it's unlikely that there will be one."
Iger suggested that Pixar had "weaned itself from its need for Disney."
But people close to the Disney president said he had privately expressed regret for coming across as too pessimistic. They said Jobs liked Iger and would be open to resuming talks if he replaced Eisner.
Claudia Eller is a reporter for the Los Angeles Times, a Tribune Publishing newspaper.
By Claudia Eller | Los Angeles Times
Posted October 17, 2004
HOLLYWOOD -- In The Incredibles, next month's computer-animated offering from Pixar Animation Studios and Walt Disney Co., a bored superhero with a bulging waistline springs back from retirement to save the world.
For the two companies, rescuing a planet seems a snap compared with saving a relationship that began imploding in January when talks over renewing their partnership collapsed. But with that deal nearing doomsday, there are flickers of optimism that one of Hollywood's most successful collaborations may be salvaged.
Opening Nov. 5, The Incredibles marks the next-to-last film under the Pixar-Disney partnership that is set to end with the release of its next movie, Cars, in November 2005.
To date, the two companies have joined forces on five consecutive digitally animated hits: two Toy Story films, Monsters, Inc., A Bug's Life and Finding Nemo. Those movies are expected by analysts to ultimately generate more than $3 billion in total profit, split between the two sides.
Despite those successes, Pixar chief executive Steve Jobs walked away in frustration from negotiations that would have extended the 13-year relationship. The talks had dragged on for nearly a year as Disney CEO Michael Eisner refused to agree to some of Jobs' more aggressive demands -- notably that Pixar would retroactively own all the movies and control sequels, if they were made.
The personal animus between Jobs and Eisner is widely thought to have played a central role in the dissolution of the partnership.
However, the Disney chief has announced that he would leave the company when his contract expires in 2006.
Although many on Wall Street remain convinced that reconciliation is a lost cause, others close to both parties hold out a glimmer of hope now that Eisner is leaving. Disney's board is expected to identify a successor by June.
People close to Jobs say he would be open to resuming talks with Eisner's successor.
"It's fair to say that given the successful partnership, investors would be happy if these two companies came together," said Lowell Singer of SG Cowen & Co. "I think Eisner's impending departure keeps the door open for that possibility."
In an interview, Jobs would not answer questions about the Disney-Pixar disagreements. He said the companies were focused for now on making The Incredibles a success. He did, however, note that yet another Pixar hit would open up even more opportunities for the Emeryville, Calif.-based company.
"Pixar is lucky enough to be five-for-five," Jobs said. "If Incredibles makes that six-for-six . . . it gives us wonderful options to work with all sorts of people."
With $755 million in cash and no debt, Pixar is poised to finance its own movies and reap the profits, paying a studio a fee to distribute the movies in theaters and on DVD. Another hit would give Jobs even more leverage with Disney or any replacement studio.
At Disney, some executives aren't ready to concede defeat.
"I would love to think it's never over until it's over," Disney studio Chairman ________ Cook said.
Disney President Robert Iger, however, recently sounded resigned when asked about Disney's future with Pixar.
"It would be nice to continue that relationship into infinity, but . . . I think we outgrow one another in a sense," Iger said. "And while I'm not ruling out some continuation, it's unlikely that there will be one."
Iger suggested that Pixar had "weaned itself from its need for Disney."
But people close to the Disney president said he had privately expressed regret for coming across as too pessimistic. They said Jobs liked Iger and would be open to resuming talks if he replaced Eisner.
Claudia Eller is a reporter for the Los Angeles Times, a Tribune Publishing newspaper.
