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Report: Disney in Talks to Buy Pixar

By Nate Mook, BetaNews

January 19, 2006, 12:46 PM

Walt Disney Co. and Pixar Animation Studios are in "serious" discussions about a potential acquisition, according to a report Thursday in the Wall Street Journal. Disney has offered a stock deal of over Pixar's current $6.7 billion market value, which would make CEO Steve Jobs the largest individual Disney shareholder.

Disney and Pixar have long been distribution partners since the debut of "Toy Story" in 1995. The two companies have since worked together in releasing a number of Pixar blockbusters, including "Finding Nemo," "Monsters, Inc." and "The Incredibles."

However, as Pixar's power in Hollywood soared, Disney's faded, and Steve Jobs threatened to end the relationship when the current agreement expires later this year. The companies have since been in months of on-again, off-again discussions, which have led to talks of a full acquisition of Pixar.

New Disney CEO Robert Iger has pushed for improved relations with Jobs, inking a deal to distribute the company's ABC television shows on Apple's iTunes Music Store. Still, Pixar holds the upper hand with Disney struggling to reclaim its former animation glory.

The Journal notes, however, that discussions are in a sensitive stage and could go either way. A more conservative distribution deal may be signed instead if an agreement over a buyout price cannot be reached.

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By dafunkk12

posted Jan 22, 2006 - 8:54 PM

Disney should definitely be on their way up now that they've ousted Eisner. The improved relationships with Apple/Pixar are the first signs of that.

Score: 0

By fewt

posted Jan 21, 2006 - 7:52 AM

Hmm, my initial reaction was NOOOOOOOOOOOOOOOOOOOO!

BUT then Steve being the largest individual share holder is very powerful and he is a very creative person.

HMMMM

Score: 0

By ds0934

posted Jan 20, 2006 - 9:19 PM

If Disney has "run out of ideas" (as many are suggesting) and acquires Pixar, that would put Pixar in a position of not being to shape bad ideas foist upon them by the new "boss". That's bad. If they allow Pixar to have some autonomy it might work, but I seriously doubt that would happen. I see it as the beginning of a slow disintegration of Pixar, where the talent will leave for opportunities with greater creative flexibility and less control.

Score: 0

By googun

edited Jan 20, 2006 - 5:29 AM

Disney has been under heavy fire from Pixar and Dreamworks in recent years, and has not been able to produce a convincing defence or attack. Its last effort, Chicken Little, was rightly trounced as garbage, as were many of its movies before that. Nevertheless, Disney has a catalogue of over 1000 productions to soften the impact of competition, and has its holiday resorts and vast merchandise interests too for revenue.

If Disney's only remaining attack is to do a deal that gives its rival Jobs power over Disney, then it really has run out of ideas. Even so, bringing Jobs onboard may be the best way to reverse Disney's fortunes.

Score: 0

By guitardave78

edited Jan 20, 2006 - 5:21 AM

Pixar is great. Disney is great. Together they have done fantastic work. Disney are good at promoting companies to produce good work. Their animation flix have been going off the boil a bit, so why not just absorb pixar. Their best work has been with disney, so it makes sense. All disney have to do is keep pixar as it is once it has been bought!!

Score: 0

By drumcat

posted Jan 19, 2006 - 2:57 PM

Props to Pixar. They were giving Disney their best product in decades, and when Disney didn't share in the wealth, they kicked 'em out the door. If they get acquired, it will be at an excellent premium.

Well played, Pixar.

Score: 0

By KSzostek

edited Jan 19, 2006 - 8:05 PM

Not exactly true Pixar was under a contract at that time, Disney didn't screw them.

Keep in mind Disney thru those contracts made Pixar.
Contracts are up now and it's time to renegotiate.

Pixar probably wouldn't be here today if not for those first contracts.

Don't make Disney the bad guy they did nothing wrong.

Score: 0

By fewt

posted Jan 21, 2006 - 7:55 AM

"Don't make Disney the bad guy they did nothing wrong."

In that case.

They were too busy laying off their talent and running their own company into the ground to worry with Pixar.

LOL

Score: 0

By drumcat

posted Jan 19, 2006 - 8:43 PM

Oh, and the negotiating leverage came from their last few animated blockbusters... funny; they don't come to mind!

Score: 0

By kashin

edited Jan 19, 2006 - 2:43 PM

Disney reminds me of companies like AOL, Symantec, Corel, etc. They all had their glory days in a certain market. When they start to fade from the spotlight, they panic and start buying similar, smaller companies with much better products or services. Then they proceed to run them into the ground, reducing them to the same level or lower than the parent company. I'll give you a couple of prime examples, off the top of my head; AOL buying Nullsoft Winamp, Corel buying Jasc Paint Shop Pro. If I were Steve Jobs, I would vehemently oppose any buy out offers.

Score: 0

By KSzostek

edited Jan 19, 2006 - 8:14 PM

It's called business in this case a great match up.

Why oppose it disney is offering more than the company is worth did you read this article or just want to bash it?

Score: 0

By Banquo

posted Jan 19, 2006 - 2:24 PM

Of course, everything Disney produces now is crap so they have to go out and buy out a company that's actually creative to make stuff for them. They'll only end up destroying Pixar though, just like everything else this horrible excuse for a company touches.

Score: 0

By athome

edited Jan 19, 2006 - 1:14 PM

Pixar has been doing some real great stuff these past years, and it is about time for Disney to wake up. I not ashamed to say that I love all the flixs that Disney put out, but they seem to be doing a lot less these days(only rereleasing). A Pixar/Disney combination would be super.
Had no idea that Jobs was the major stock holder. He is in the right place at the right time.

Score: 0

By M1M2Z1

posted Jan 19, 2006 - 1:53 PM

"Had no idea that Jobs was the major stock holder."

Where have you been since Toy Story 2?

Score: 0

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