Two Articles:
PIXAR TO STAY PUT AT DISNEY, SAYS REPORT
Wednesday, July 21 2004
After holding discussions with MGM, Sony, Warner Bros. and Fox, Steve Jobs' Pixar Animation Studios has concluded that it will remain partnered with Disney, the New York Post reported today (Wednesday), citing sources familiar with the matter. The newspaper commented that such a development would represent a significant victory for Disney CEO Michael Eisner, whose relationship with Jobs was described by the Post as "acrimonious." (Jobs has told interviewers in the past that he would renew negotiations with Disney only if Eisner was forced out.) Jobs had reportedly been hoping that another studio would agree to a deal in which it would receive simply a distribution fee to handle Pixar films and would not share in their profits.
Disney and Pixar: Reunited?
July 21, 2004
Tim Arango
Hollywood is gearing up for an unlikely reunion.
Steve Jobs' Pixar Animation Studios is likely to renew a lucrative movie-making partnership with Disney, according to sources familiar with the matter.
Despite publicly backing out of talks with Disney in January and making the rounds of other Hollywood studios looking for a partner, Jobs has come to believe that the best home for Pixar is at Disney after all, sources said.
A reunion would mark a significant victory for Disney CEO Michael Eisner, who has long had an acrimonious relationship with Jobs.
Pixar's decision earlier this year to end discussions with Disney over an extension of their deal became a focal point for angry shareholders looking to oust Eisner.
But it appears Eisner called Jobs' bluff when he dug in and refused to renew the deal on the significantly less lucrative terms that Pixar had been proposing.
Under the current deal, which expires at the end of 2005, Disney and Pixar split the profits on the movies evenly; Disney also receives a 12.5 percent distribution fee. By some estimates Disney and Pixar could split some $1 billion from their most recent hit, "Finding Nemo."
Pixar had been seeking a new deal that would pay Disney only a distribution fee which some have said was as low as 10 percent. Pixar had also sought to alter the terms of the existing deal.
After bailing on Disney, Pixar held preliminary discussions with other studios, including MGM, Sony, Warner Bros. and Fox. (Both Fox and The Post are owned by News Corp.)
Now, executives at those companies have all but given up hope of striking a deal with Pixar, sources said.
Pixar had also been wooed by Comcast after the cable giant attempted a hostile takeover of Disney. Comcast had sought to bring Jobs to its side in the hopes of convincing Disney shareholders that a merger with Comcast would come with a renewed Pixar deal.
Representatives for Pixar and Disney declined comment.
In March, when Eisner's job seemed to be in jeopardy amid a backlash from dissident shareholders, Jobs told Hollywood associates that he would go back to Disney only if Eisner left.
Now he appears to be changing his tune, sources say, and is likely to stick with Disney regardless of how long Eisner remains as CEO.
If Jobs were to leave the Disney fold, he would be leaving behind a film library that includes hits such as "Toy Story" and "Monsters Inc." He would also lose the rights to make sequels.
"He'll probably give Disney a shot again because it doesn't make sense to split the library," said a source.
Still, a new deal between Pixar and Disney is not likely to be completed soon. Before the current expiration date, the companies have two more movies to make: "The Incredibles" and "Cars."
"Jobs really doesn't have to do anything today," said a source. "He can wait."
Source: Copyright 2004 NYP Holdings, Inc. All rights reserved.
PIXAR TO STAY PUT AT DISNEY, SAYS REPORT
Wednesday, July 21 2004
After holding discussions with MGM, Sony, Warner Bros. and Fox, Steve Jobs' Pixar Animation Studios has concluded that it will remain partnered with Disney, the New York Post reported today (Wednesday), citing sources familiar with the matter. The newspaper commented that such a development would represent a significant victory for Disney CEO Michael Eisner, whose relationship with Jobs was described by the Post as "acrimonious." (Jobs has told interviewers in the past that he would renew negotiations with Disney only if Eisner was forced out.) Jobs had reportedly been hoping that another studio would agree to a deal in which it would receive simply a distribution fee to handle Pixar films and would not share in their profits.
Disney and Pixar: Reunited?
July 21, 2004
Tim Arango
Hollywood is gearing up for an unlikely reunion.
Steve Jobs' Pixar Animation Studios is likely to renew a lucrative movie-making partnership with Disney, according to sources familiar with the matter.
Despite publicly backing out of talks with Disney in January and making the rounds of other Hollywood studios looking for a partner, Jobs has come to believe that the best home for Pixar is at Disney after all, sources said.
A reunion would mark a significant victory for Disney CEO Michael Eisner, who has long had an acrimonious relationship with Jobs.
Pixar's decision earlier this year to end discussions with Disney over an extension of their deal became a focal point for angry shareholders looking to oust Eisner.
But it appears Eisner called Jobs' bluff when he dug in and refused to renew the deal on the significantly less lucrative terms that Pixar had been proposing.
Under the current deal, which expires at the end of 2005, Disney and Pixar split the profits on the movies evenly; Disney also receives a 12.5 percent distribution fee. By some estimates Disney and Pixar could split some $1 billion from their most recent hit, "Finding Nemo."
Pixar had been seeking a new deal that would pay Disney only a distribution fee which some have said was as low as 10 percent. Pixar had also sought to alter the terms of the existing deal.
After bailing on Disney, Pixar held preliminary discussions with other studios, including MGM, Sony, Warner Bros. and Fox. (Both Fox and The Post are owned by News Corp.)
Now, executives at those companies have all but given up hope of striking a deal with Pixar, sources said.
Pixar had also been wooed by Comcast after the cable giant attempted a hostile takeover of Disney. Comcast had sought to bring Jobs to its side in the hopes of convincing Disney shareholders that a merger with Comcast would come with a renewed Pixar deal.
Representatives for Pixar and Disney declined comment.
In March, when Eisner's job seemed to be in jeopardy amid a backlash from dissident shareholders, Jobs told Hollywood associates that he would go back to Disney only if Eisner left.
Now he appears to be changing his tune, sources say, and is likely to stick with Disney regardless of how long Eisner remains as CEO.
If Jobs were to leave the Disney fold, he would be leaving behind a film library that includes hits such as "Toy Story" and "Monsters Inc." He would also lose the rights to make sequels.
"He'll probably give Disney a shot again because it doesn't make sense to split the library," said a source.
Still, a new deal between Pixar and Disney is not likely to be completed soon. Before the current expiration date, the companies have two more movies to make: "The Incredibles" and "Cars."
"Jobs really doesn't have to do anything today," said a source. "He can wait."
Source: Copyright 2004 NYP Holdings, Inc. All rights reserved.
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