Iger ready to rebuild partnerships
His diplomatic skills could bring back Pixar
By Richard Verrier, Claudia Eller and Sallie Hofmeister | Orlando Sentinel and Los Angeles Times
Posted March 15, 2005
Robert Iger has a message for Steve Jobs: Let's talk.
On Monday, the day after he was named the next chief executive of Walt Disney Co., Iger said a top priority was to reach out to the Pixar Animation Studios chief in hopes of repairing a fractured partnership that over the years produced such blockbusters as The Incredibles, Finding Nemo and the Toy Story films.
"I will certainly make an attempt and look forward to some dialogue provided he's willing," Iger, now Disney's president, said in an interview. "I've always valued creative partnerships. This one has been incredibly successful for both companies."
When Iger takes over for outgoing CEO Michael Eisner Oct. 1, it will fall to the diplomatic and low-key former network television executive to mend frayed relationships with key alllies who clashed with the mercurial Eisner.
Analyst agreed that it was too late to prevent Disney's pending breakup with Harvey and Bob Weinstein, the co-founders of its Miramax Films division and the men behind such films as Chicago and Shakespeare in Love. A settlement ending their union is expected within the month.
But Iger has an opportunity, analysts said, to breathe new life into Disney's relationships with Pixar as well as the National Football League, whose games Disney airs on its ABC and ESPN networks.
Iger's conciliatory style is expected to serve him well. "To know Bob is to like him," said Jessica Reif Cohen, a media analyst with Merrill Lynch. "But he's got his challenges."
Chief among them, analysts said, will be luring Jobs back to the bargaining table.
In the interview, Iger said that as much as he valued Pixar, salvaging the relationship required striking "the right deal" for Disney shareholders.
Over the years, Pixar's movies have contributed more than half of Disney's profit from films. Pixar and Disney currently split profits and production costs under a multi-picture deal that expires in 2006 with the release of Cars.
Jobs wants to change that and is using Pixar's success to leverage a better deal. He has proposed paying Disney a straight distribution fee, much like director George Lucas does with Twentieth Century Fox for releasing his Star Wars movies.
After repeatedly battling with Eisner, Jobs a year ago halted talks that could have extended the alliance with Disney. While haggling over business terms, Jobs and Eisner have repeatedly traded barbs in public
Underscoring how personal the feud has become, Jobs has made it clear to people inside and outside of Pixar that he would be willing to resume negotiations once Eisner is gone. Now that Eisner has a departure date, the likelihood of talks resuming is "definitely more possible," said a source close to Jobs.
Jobs would not comment Monday.
For his part, Iger has publicly given mixed signals on whether the Pixar deal can be saved. Last fall, he told a conference in London: "It would be nice to continue the relationship to infinity, but I think we've outgrown each other."
Some analysts say the two sides are so far apart on basic financial terms that goodwill alone won't be enough to bring the parties together.
"The chance that Pixar will go with Disney is still relatively slim," said Tuna Amobi, a media analyst with Standard & Poor's.
Responding to speculation of resumed talks, investors pushed Pixar's stock price up nearly $2 to $90.96. Disney shares only inched up 43 cents on the New York Stock Exchange to $28.02.
In the case of the NFL, Disney has exclusive rights through October. The NFL's three other major television partners -- Fox, CBS and DirecTV -- all renewed their contracts with the league late last year, agreeing to stiff rate increases of an average of more than 25 percent a year over the six-year contract.
Analysts and industry insiders say the NFL's rate will only increase as the expiration date of the current contract at the end of the 2005-2006 season, draws near.
Disney has said that it would not begin serious talks with the NFL until after the Super Bowl in February. Iger would not comment on the talks.
Richard Verrier can be reached at 1-800-528-4637, Ext. 77936, or richard.verrier @latimes.com. Claudia Eller and Sallie Hofmeister are reporters for the Los Angeles Times, a Tribune Publishing newspaper.
His diplomatic skills could bring back Pixar
By Richard Verrier, Claudia Eller and Sallie Hofmeister | Orlando Sentinel and Los Angeles Times
Posted March 15, 2005
Robert Iger has a message for Steve Jobs: Let's talk.
On Monday, the day after he was named the next chief executive of Walt Disney Co., Iger said a top priority was to reach out to the Pixar Animation Studios chief in hopes of repairing a fractured partnership that over the years produced such blockbusters as The Incredibles, Finding Nemo and the Toy Story films.
"I will certainly make an attempt and look forward to some dialogue provided he's willing," Iger, now Disney's president, said in an interview. "I've always valued creative partnerships. This one has been incredibly successful for both companies."
When Iger takes over for outgoing CEO Michael Eisner Oct. 1, it will fall to the diplomatic and low-key former network television executive to mend frayed relationships with key alllies who clashed with the mercurial Eisner.
Analyst agreed that it was too late to prevent Disney's pending breakup with Harvey and Bob Weinstein, the co-founders of its Miramax Films division and the men behind such films as Chicago and Shakespeare in Love. A settlement ending their union is expected within the month.
But Iger has an opportunity, analysts said, to breathe new life into Disney's relationships with Pixar as well as the National Football League, whose games Disney airs on its ABC and ESPN networks.
Iger's conciliatory style is expected to serve him well. "To know Bob is to like him," said Jessica Reif Cohen, a media analyst with Merrill Lynch. "But he's got his challenges."
Chief among them, analysts said, will be luring Jobs back to the bargaining table.
In the interview, Iger said that as much as he valued Pixar, salvaging the relationship required striking "the right deal" for Disney shareholders.
Over the years, Pixar's movies have contributed more than half of Disney's profit from films. Pixar and Disney currently split profits and production costs under a multi-picture deal that expires in 2006 with the release of Cars.
Jobs wants to change that and is using Pixar's success to leverage a better deal. He has proposed paying Disney a straight distribution fee, much like director George Lucas does with Twentieth Century Fox for releasing his Star Wars movies.
After repeatedly battling with Eisner, Jobs a year ago halted talks that could have extended the alliance with Disney. While haggling over business terms, Jobs and Eisner have repeatedly traded barbs in public
Underscoring how personal the feud has become, Jobs has made it clear to people inside and outside of Pixar that he would be willing to resume negotiations once Eisner is gone. Now that Eisner has a departure date, the likelihood of talks resuming is "definitely more possible," said a source close to Jobs.
Jobs would not comment Monday.
For his part, Iger has publicly given mixed signals on whether the Pixar deal can be saved. Last fall, he told a conference in London: "It would be nice to continue the relationship to infinity, but I think we've outgrown each other."
Some analysts say the two sides are so far apart on basic financial terms that goodwill alone won't be enough to bring the parties together.
"The chance that Pixar will go with Disney is still relatively slim," said Tuna Amobi, a media analyst with Standard & Poor's.
Responding to speculation of resumed talks, investors pushed Pixar's stock price up nearly $2 to $90.96. Disney shares only inched up 43 cents on the New York Stock Exchange to $28.02.
In the case of the NFL, Disney has exclusive rights through October. The NFL's three other major television partners -- Fox, CBS and DirecTV -- all renewed their contracts with the league late last year, agreeing to stiff rate increases of an average of more than 25 percent a year over the six-year contract.
Analysts and industry insiders say the NFL's rate will only increase as the expiration date of the current contract at the end of the 2005-2006 season, draws near.
Disney has said that it would not begin serious talks with the NFL until after the Super Bowl in February. Iger would not comment on the talks.
Richard Verrier can be reached at 1-800-528-4637, Ext. 77936, or richard.verrier @latimes.com. Claudia Eller and Sallie Hofmeister are reporters for the Los Angeles Times, a Tribune Publishing newspaper.
Anything to keep his ego in the spotlight, and people under his thumb. 
:hurl: :brick:
