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Post subject: Jobs to Eisner- "So long, & thanks for all the fish
LOS ANGELES (Reuters) - Pixar Animation Studios Inc. Thursday ended talks with Walt Disney Co. to renew a lucrative movie distribution deal that has resulted in such blockbusters as “Toy Story” and “Finding Nemo.”
Pixar, the pioneering computer animation house founded by Apple Computer Inc.’s Steve Jobs, said it would look for another studio partner to distribute its films starting in 2006, when its current deal with Disney expires.
Shares of both companies fell 6 percent after hours. Many observers had expected Pixar and Disney to eventually renew a partnership whose five movies since 1995 have earned more than $2.5 billion at the global box office.
The Pixar movies have accounted for a large share of Disney Studios’ operating profit in recent years. But Disney said Pixar’s final offer would have cost it hundreds of millions of dollars from its current deal which includes two more films in production — “The Incredibles,” set for release in November and “Cars,” due out in 2005.
The move was an unexpected blow to Disney, and chief executive, Michael Eisner, already under fire from an heir of founder Walt Disney. Disney’s nephew, Roy Disney, accuses Eisner of mismanaging the company that pioneered feature animation.
Analysts and investors said Pixar could be using its announcement as a negotiating tactic and observers did not rule out a resumption of talks.
“After 10 months of trying to strike a deal with Disney, we’re moving on,” said Jobs, Pixar’s chief executive.
“We’ve had a great run together — one of the most successful in Hollywood history — and it’s a shame that Disney won’t be participating in Pixar’s future successes.”
Disney Chief Executive Michael Eisner issued a statement wishing Pixar success.
“Disney management could not accept Pixar’s final offer because it would have cost Disney hundreds of millions of dollars ... under the existing agreement” without giving Disney enough return on new collaborations, the company said.
Pixar had been expected to close a new deal by the middle of this year but had said it would prefer to renew with Disney.
"It makes it look like Eisner did something wrong again, but we shouldn’t jump to conclusions. This could be a negotiating tactic by Pixar as well,” said Patrick McKeigue, an analyst at Independence Investment, which holds Disney shares.
“It’s not a happy thing when two long-time partners break apart and Disney, of course, will survive. However, psychologically, the market was hoping there would be an agreement shortly,” said Hal Vogel, a New York-based media analyst who runs Vogel Capital Management.
Other studios seen as contenders for a Pixar deal included Warner Bros., a unit of Time Warner Inc , Sony Corp , and 20th Century Fox, a unit of Fox Entertainment Group Inc.
A spokeswoman for Warner Bros. said the studio would welcome a deal with Pixar but there had been no formal talks.
Banc of America Securities analyst Michael Savner noted that by leaving Disney, Pixar would effectively give up rights to make sequels to its previous hits such as “Toy Story.”
The San Francisco Bay-area studio also runs the risk of setting itself up to compete directly at the box office with Disney’s future family-friendly offerings, Savner said.
“Disney could put out its movies at the same time as Pixar,” he said. Many investors had already assumed Pixar would get a much-improved deal, including on the two pictures in production, he added.
Staffing at Disney’s animation department has shrunk by more than 70 percent since 1997. The studio remains a major force in family entertainment and has charged into the field of computer animation on its own.
Pixar had complained that the terms of the distribution deal were tilted too heavily in Disney’s favor. Under the deal, Pixar was responsible for content, while Disney handled distribution and marketing.
In exchange, Pixar has split profits with Disney and pays the studio a distribution fee of between 10 percent to 15 percent of revenue.
Based on its blockbuster success, Pixar has argued that it should keep the profit itself and cut the fees its studio partner charges. _________________ "When I became a man, I put away childish things, including the fear of childishness and the desire to be very grown up."- C.S. Lewis
"Superman can't be emo. He can't cut himself."-CP
Thu Jan 29, 2004 9:44 pm
Daikun
Joined: Nov 02, 2002
Post subject:
This is interesting news. Now that they no longer have to depend on Disney, do you think they'll make films where Disney's standards aren't necessary?
Fri Jan 30, 2004 3:02 am
dougisfunny
Joined: Oct 29, 2002
Post subject:
nope
Fri Jan 30, 2004 12:09 pm
Zechs
Joined: Nov 07, 2002
Post subject:
Wow, well I hate to say it but without Pixar Disney is going to lose an exhorbant amount of revenue.
Correct me if I'm wrong, but Pixar's Finding Nemo made more money at the box office than Disney's last two traidiotnally animated films combined.
Disney's new strength seems to be their more recent live-action films. Their releases have been given more press coverage and generaly higher praise. _________________ Bang.
Fri Jan 30, 2004 4:45 pm
wildarmsheero
Joined: Jun 27, 2003
Post subject:
I think Pixar will now have more creative freedom with this move, I can just see it now....
"OMG! Mommy! Did the cartoon person just say FUCK?" _________________ Comic | Wallpapers | Art | Music
Fri Jan 30, 2004 5:32 pm
Andromaton
Joined: Nov 17, 2003
Post subject:
I have to reserve judgment on how Disney is going to do after the split. They just went 3d remember, we have yet to see anything that they can do. Pixar might be good but they don't have Glen Keane calling the shots and that my friends is a big deal.
Fri Jan 30, 2004 6:51 pm
Fodder
Joined: Apr 02, 2003
Post subject:
Well remember that Disney has two more movies with Pixar. "The Incredibles" and "Cars". So they arent going broke yet. Now add that this could just be a negotiation ploy as well. Sure Pixar doesnt really need Disney. But it doesnt hurt to have them.
Also look at it from Disneys side. They decided last year to go 3D. They probaly hired some Pixar people and made sure they learned a lot from their "relationship". This would be to prepare them for the split. It should be interesting to see how this pans out. Steve Jobs isnt a stupid person. Im sure he has this all planned out in advance.
Fri Jan 30, 2004 7:51 pm
counterparadox
Joined: Nov 07, 2002
Post subject:
a) Glen Keane?
b) What EXACTLY does Disney DO for Pixar? I honestly haven't the faintest idea.
c) Sadly, Disney will live on WITH EISNER (since stock holders think he makes htem money). The, what is it, 70, 80 year long tradition of quality Disney Animation is officially over. It won't return. Unless someone comes in withint hte next month and says "Ok, we're undoing what we did," all the artists are going to move on, and thats it, it's over. _________________ anime is teh s uck
Play City of Heroes/Villians? Look me up, Pinnacle server, @C Paradox
Sat Jan 31, 2004 12:21 am
Nobuyuki
Joined: Nov 07, 2002
Post subject:
counterparadox wrote:
a) Glen Keane?
b) What EXACTLY does Disney DO for Pixar? I honestly haven't the faintest idea.
c) Sadly, Disney will live on WITH EISNER (since stock holders think he makes htem money). The, what is it, 70, 80 year long tradition of quality Disney Animation is officially over. It won't return. Unless someone comes in withint hte next month and says "Ok, we're undoing what we did," all the artists are going to move on, and thats it, it's over.
b) Distribution and marketing of Pixar's fillms, in exchange for copyrights, licensing and sequel rights.
c) Too true, but we'll have to wait and see how their 3DCG features turn out. _________________ "When I became a man, I put away childish things, including the fear of childishness and the desire to be very grown up."- C.S. Lewis
"Superman can't be emo. He can't cut himself."-CP
Sat Jan 31, 2004 12:54 am
Andromaton
Joined: Nov 17, 2003
Post subject:
Glen is also the one who disigned and animated Tarzan and Silver from Treasure Planet (they had their best 2s and best 3d guys work on him, the 3d guy was one of the team that created the deep canvas technology)
He's also the son of Family Circle creator guy. Billy IS Glen.
As I briefly mentioned before Glen is basicly in charge of the 3d productions. For his learning 3d he demanded the right to send any scene back that does not meet his 2D standards. That my friends is one thing pixars guys don't have. They don't do 2d, to trully understand motion in 3d you MUST understand it in 2d. Pixars guys are good, but there are things they just don't get right.
Sat Jan 31, 2004 1:47 am
counterparadox
Joined: Nov 07, 2002
Post subject:
Why, exactly, can't Pixar 'market and distribute' it's own films? I really don't understand here. Pixar is such a consitent blockbuster success, why do they need someone ELSE to market and distribute. Am I missing something here?
Oh, and d) Just because Pixar COULD make more adult movies, doesn't mean they should. CG movies live by catering to a WIDE audience. Why mess with a formula that works really really well? There are some damn good movies that are G or PG. It doesn't have to say "fuck" every 5 seconds to be a good movie, people. _________________ anime is teh s uck
Play City of Heroes/Villians? Look me up, Pinnacle server, @C Paradox
Sat Jan 31, 2004 12:02 pm
Nobuyuki
Joined: Nov 07, 2002
Post subject:
counterparadox wrote:
Why, exactly, can't Pixar 'market and distribute' it's own films? I really don't understand here. Pixar is such a consitent blockbuster success, why do they need someone ELSE to market and distribute. Am I missing something here?
In the beginning, they didn't have the resources, experience or clout of mass popularity they enjoy now. They needed someone like Disney to give them a boost.
Now, as we've seen, they can call their own shots. I believe their goal is to emulate Lucasfilm eventually. _________________ "When I became a man, I put away childish things, including the fear of childishness and the desire to be very grown up."- C.S. Lewis
"Superman can't be emo. He can't cut himself."-CP
Sat Jan 31, 2004 2:26 pm
Daikun
Joined: Nov 02, 2002
Post subject:
What's this? Disney will make CGI films WITHOUT Pixar?
I hope you're joking about not knowing that already... _________________ "When I became a man, I put away childish things, including the fear of childishness and the desire to be very grown up."- C.S. Lewis
"Superman can't be emo. He can't cut himself."-CP
Sun Feb 01, 2004 10:50 am
Daikun
Joined: Nov 02, 2002
Post subject:
Yes, I was joking, but that wasn't the part I was joking about. I was joking when I said "survive."
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