Disney buys Pixar! (With a look back through time)

Daikun · **Daikun**

The Walt Disney Company and Pixar, which fell out spectacularly a year ago, are seeking to patch up their differences and renew the most lucrative pairing in Hollywood history.

Just over a year after the two film studios announced an end to their partnership, which has produced six consecutive global blockbusters and box office receipts of $2.7 billion, a new deal could be on the table.

Dick Cook, the head of Disney’s film studios, told The (London) Times that it was "definitely our desire" to strike a new deal with Pixar in place of the one that will expire with the release of Cars next year.

"This has been probably the most successful relationship in the history of Hollywood," Mr. Cook said. "We've had a great working relationship with [Pixar]. It's been about as easy as any has ever been in terms of making movies and distributing and marketing them," he added during a visit to London this week.

"It's definitely our desire to further the relationship with Pixar for years to come, and develop it even more, and we’re hopeful they feel the same way," Mr. Cook said.

Disney distributes all of Pixar's films in exchange for 12.5 per cent of box office revenue, and the two companies split the profits from spin-offs. Disney also has the right to make sequels to the films made under the existing deal.

Pixar must have a new distributor in place before its eighth film is released in the summer of 2007. Now that the company is able to fund its own productions, and has an unprecedented string of hits to its name, it will not extend the same terms to any new partner. The likely outcome will be a flat distribution fee, probably linked to box office grosses.

Certainly, Pixar has been making it known that Disney is a handsome suitor, particularly since the media conglomerate announced that Michael Eisner would be replaced as chief executive by Bob Iger in September.

"We have always said that we were waiting for the changes at the helm of the [Disney] group before taking a decision," said Ed Catmull, co-founder of Pixar, last month.

"Now that it's done and that there will be a new CEO in September, we will resume negotiations with Walt Disney, but also with other market players," he said.

Such conciliatory tones are striking in their contrast with Disney and Pixar's comments over the past year. "We feel sick about Disney doing [Pixar] sequels," said Steve Jobs, the Apple chief who also heads Pixar, at the height of animosities between the two. At the time, Mr. Jobs said: "If you look at their sequels, like Lion King 1½ . . . it’s pretty embarrassing."

But Mr. Cook has emerged as Hollywood's premier diplomat, having successfully negotiated the smooth exit of Bob and Harvey Weinstein from Miramax last month. It also helps that he is on excellent terms with Mr. Jobs. "We're good friends; I talk to him all the time," he said.

There remain significant hurdles that could block a renewal of vows between Pixar and Disney. One is the desire among the Hollywood studios to cut a deal with Pixar. Another is Disney's development of its own computer animation unit with a view to making sequels to Pixar hits. The latter, in particular, is said to rankle with Pixar. Production of Toy Story 3 is expected to begin next year. Disney is also said to be fielding pitches for sequels to Finding Nemo and Monsters, Inc.

But Mr. Cook said that he was "hopeful that over the next several months, we can have further discussions".
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Toonami visual schedule - UPDATED AUGUST 2, 2015

Daikun · **Daikun**

Steve Jobs, the chairman and CEO of Pixar Animation Studios, would be open to a sale of the company at the right price, according to a published report.

The New York Times reports Jobs, who owns about 50 percent of Pixar, would want a strong premium to its current $5.9 billion market capitalization to consider a sale, but he would be open to an offer from its long-time partner, The Walt Disney Company. The paper attributed Jobs' willingness to consider a sale to "two people with knowledge of the talks" now taking place between Disney and Pixar about possibly extending their partnership.

But the paper reports that in talks about a new version of their partnership, Disney CEO Robert Iger has yet to make an offer to acquire Pixar. The paper reports that Disney is hoping that its new animated feature, Chicken Little, due in theaters this weekend, will give it greater leverage in talks with Pixar.

Chicken Little is the first offering from Disney's animation studio since it was revamped to produce computer-generated features that have a three-dimensional look, rather than the traditional hand-drawn two-dimensional cartoons.

Pixar has produced only CG features and nothing but blockbusters since it started producing movies in 1995, while many of the Disney-generated animated movies during the period were considered box office flops.

The Times reports that if Chicken Little is a hit, it would show Wall Street and Jobs that Disney need not depend on Pixar for creation of new animated movie characters that could be adapted for theme park rides, consumer products and television.

The movie has gotten generally favorable early word, but if it is not well received by critics or moviegoers, the paper reports that Jobs will gain leverage in his talks with Disney because the media conglomerate would be seen as relying on Pixar to add new stories to its creative arsenal.

If the movie performs poorly, Bernstein & Co. media analyst Michael Nathanson told the paper, "investors might want to see a Pixar deal right behind it." Still, he added, "it's all about numbers, and both sides - Disney and Pixar - are looking for leverage."

Pixar has strong cash reserves and no longer needs Disney's to help finance films, so it is looking for a distribution agreement for a far larger percent of the box office than the 50 percent it receives under the current deal with Disney.

But while there are likely to be other studios willing to distribute Pixar films, analysts see Disney as best positioned to promote future Pixar films and its characters due to theme parks and strong merchandise sales channels.

Jobs would evaluate any Pixar partnership based on where he could get the best deal for the studio, the paper reports, not on his developing friendship with Iger. Jobs often sparred with Iger's predecessor, Michael Eisner. The Disney Channel and ABC, other units of Disney, recently signed a deal to distribute shows on the new video version of Apple's iPod.

The Times reports that detailed negotiations between Disney and Pixar are likely to begin in mid-November and could be wrapped up by late December or early January, said one of the paper's sources. The studios have several issues to grapple with, according to the paper, including who would have creative oversight over new Pixar characters at Disney theme parks and how revenue from rides and other attractions would be split.
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Toonami visual schedule - UPDATED AUGUST 2, 2015

Nobuyuki · **Nobuyuki**

Disney in talks to buy Pixar Animation Studios
Report: Deal would make Steve Jobs largest individual Disney shareholder
The Associated Press
Updated: 10:44 a.m. ET Jan. 19, 2006

NEW YORK - The Walt Disney Co. is in serious talks to buy Pixar Animation Studios Inc., the maker of the hit movies “Toy Story” and “Finding Nemo” among others, following months of exploring how to continue their profitable film distribution partnership, The Wall Street Journal reported Thursday.

Citing unnamed people familiar with the plan, the Journal said Disney would pay a nominal premium to Pixar’s current market value of $6.7 billion under the deal being discussed in a stock transaction that would make Pixar chief executive Steve Jobs the largest individual shareholder in Disney.

The Journal said the outcome of the talks isn’t certain, and that other options are possible.

Telephone messages left Thursday morning for Disney spokeswoman Michelle Bergman in Burbank, Calif., and Pixar’s Michele Clarke in New York were not immediately returned.

Jobs is the largest shareholder in Pixar, with more than 60 million shares, or 50.6 percent, according to Pixar’s filings with securities regulators last year. At its current share price, his stake is worth about $3.44 billion.

Jobs is already a force in the media business as he also heads Apple Computer Inc., which reported Wednesday that first-quarter income nearly doubled on record revenue and big demand for its iPod music players.

Disney and Pixar have been partners for more than 12 years, allowing Disney to distribute and co-finance popular and profitable Pixar movies that have also included “The Incredibles.” But Jobs said two years ago, amid squabbles with then-Disney CEO Michael Eisner, that he would end that relationship when it expires later this year and seek a new distribution partner.

Disney’s current CEO Robert Iger, who took over last October, has reportedly made continuing the companies’ relationship a priority. Iger last fall allowed Disney TV shows like “Desperate Housewives” and “Lost” to be made available in a format that could be downloaded and played on iPods.

There has been weeks of speculation that Disney might try to take a stake in Pixar or buy it outright.

The Journal said the companies are still haggling over a price, and any major moves in Pixar’s stock price could disrupt negotiations. The newspaper said the two sides could decide on a less-ambitious plan, including an agreement for Disney to distribute movies that Pixar finances and makes.
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"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
Wink

"Superman can't be emo. He can't cut himself."-CP

Daikun · **Daikun**

BusinessWeek debunked the rumor a couple of days ago.
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Toonami visual schedule - UPDATED AUGUST 2, 2015

Nobuyuki · **Nobuyuki**

Maybe, but it's a fun show, even in reruns... Razz

Oh, and this was at the end of the BW article:

Nobuyuki · **Nobuyuki**

And now it's a done deal...

Disney buying Pixar for $7.4 billion
Deal brings Steve Jobs into powerful role at media conglomerate
BREAKING NEWS
The Associated Press
Updated: 4:32 p.m. ET Jan. 24, 2006

LOS ANGELES - The Walt Disney Co. said Tuesday it is buying longtime partner Pixar Animation Studios Inc. for $7.4 billion in a deal that could restore Disney’s clout in animation while vaulting Pixar CEO Steve Jobs into a powerful role at the media conglomerate.

Disney announced the deal for the maker of the blockbuster films “Toy Story and “Finding Nemo” after the close of trading.

More details to follow as they're released (if I'm awake then Wink

)
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Marketwatch comes through!

Jobs to get board seat; Pixar exec will run animation unit
By Russ Britt, MarketWatch
Last Update: 5:05 PM ET Jan. 24, 2006

LOS ANGELES (MarketWatch) -- After months of negotiations, Walt Disney Co. has agreed to acquire Pixar for $6.3 billion in stock plus $1.1 billion of the computer animation specialist's cash, the companies said after the market closed Tuesday.

Pixar shareholders will get 2.3 shares of Disney stock for every share they own. Based on Tuesday's closing prices, that amounts to $59.77 a share.

The deal combines the two companies that have been partners for more than a decade, and offers Disney a leg up in animated films, where it has been struggling in recent years.

"The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses," Disney Chief Executive Robert Iger said in a written statement.

In after-hours trading, Pixar shares climbed more than 3% to $59.60 while Disney was flat.

Under the deal, Pixar Chief Executive Steve Jobs will take a seat on Disney's board. It is believed he will become the company's largest individual shareholder.

Pixar will be combined with Disney's animation department, with the new operation will be headed by Pixar's current president, Ed Catmull, who will report to Iger and studio chief Dick Cook.

John Lasseter will become chief creative officer of the animation studios as well as principal creative advisor at Walt Disney Imagineering.

Two years ago, Pixar sought to sever its ties to Disney with former Chief Executive Michael Eisner getting the blame for souring the relationship with its successful animation partner. Pixar has yet to release a flop from the six animated features it has produced thus far.

Talks resumed after Eisner left the company last year, giving way to Iger, who immediately sought to renew the company's relationship with Pixar and resumed talks to continue their distribution arrangement. That later blossomed into takeover talks.

Disney has distributed Pixar's films over the last 11 years, beginning with 1995's "Toy Story." The other films in Pixar's library include "A Bug's Life," "Toy Story 2," "Monsters Inc.," "Finding Nemo" and "The Incredibles." The two first formed their partnership in 1991.

One more film remains under the current Disney-Pixar arrangement, "Cars," which is due to be released in June.

The deal is subject to regulatory conditions and is expected to be approved later this year.

Jobs, who owns 50.6% of Pixar stock, has agreed to vote 40% of the outstanding shares in favor of the transaction.
_________________
"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
Wink

"Superman can't be emo. He can't cut himself."-CP

counterparadox · **counterparadox**

When I first heard about this, I was rather depressed. But with Jobs on the board of Disney, and Lasseter heading up ALL of Disney's creativity . . . I'm kinda excited. Pixar could either turn to SUCK, OR! Disney could turn to awesome.

Or both could just stay the same.

Still! Excited!
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anime is teh s uck

Play City of Heroes/Villians? Look me up, Pinnacle server, @C Paradox

EddieB · **EddieB**

This news really excites me. I hope now Disney will start to release quality films again and also Toy Story 3 won't suck. I really love the comment steve jobs made about the Disney's sequels. A Monsters Inc sequel sounds pretty good I really liked the first one.
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From The Great one himself:

"I've never believed in doing sequels. I didn't want to waste the time I have doing a sequel; I'd rather be using that time doing something new and different."

Nobuyuki · **Nobuyuki**

Toy Story 3, as planned by Disney, is dead.

That was one of the first things Lasseter did.

From the LA Times:

Deal Ends Quarrel Over Pixar Sequels
Disney is expected to give up its special unit that has been working on 'Toy Story 3.'
By Claudia Eller
Times Staff Writer

January 26, 2006

Walt Disney Co. may soon own Pixar Animation Studios, but in at least one key area — sequels — the media giant has already ceded control to the company it is buying.

Last year, when Bob Iger took the reins at Disney, he inherited a small animation unit that his studio had created expressly to produce sequels to Pixar hits.

Staffed with artists who had no connection to the original films, the operation — nicknamed Pixaren't — was seen by many in the animation community as Disney overstepping its bounds. As Pixar and Disney weighed whether to extend their long-term distribution deal, some believed Disney was saying, in effect: We can do this without you.

Apparently, Disney can't.

The announcement this week that Disney would buy Pixar for $7.4 billion promised sweeping changes at the Burbank entertainment company, whose entire animation group would soon be handed over to Pixar's creative director, John Lasseter, and Pixar President Ed Catmull.

In remarks made during a Tuesday conference call with analysts, Iger and Pixar Chief Executive Steve Jobs implied what other sources confirmed Wednesday: that Disney's 150-plus-person Pixar sequels unit — which is housed in a Glendale warehouse and is already at work on "Toy Story 3" — will soon be no more.

"We feel very strongly that if the sequels are going to be made, we want the people who were involved in the original films involved in the sequels," Jobs said.

Iger sounded the same note.

"It was really important to me that the people who made the films originally, who had the vision, who knew the characters and the essence of these films get a shot at making any films that were derivative," the Disney chief said.

"While Disney might have been able to make them, Pixar making them is just so much different," Iger added. "Not to take away from the talent of other people who might have been picked to make them."

Although Disney is planning to shutter the sequels unit, which is officially named Circle 7 after the street where it is situated, that does not necessarily mean all of its employees will be let go. Some are expected to be absorbed into Disney's core animation division.

On Wednesday, Disney Studios Chairman Dick Cook said, "All of the sequels to Pixar movies will be made by Pixar. We are clearly going to look at all of the talent that has been assembled and figure out where we go from here."

Already, the Circle 7 group has spent months in pre-production on "Toy Story 3," the third installment of the successful Buzz Lightyear and Woody adventure series. Under director Bradley Raymond, who made Disney's direct-to-video sequel "The Lion King 1 1/2 ," models are being built and the script by Jim Herzfeld and Jared Stern is being revised.

As conceived thus far, the story follows what happens when Buzz is recalled to the toy factory in Taiwan and has to be saved from doom by his fellow toys.

Now, it looks as if all or some of that work may be in vain.

Lasseter, the creator and director of the original "Toy Story" movies, has made no secret of his protective feelings for the successful franchise. In fact, he shared long ago with close associates a different story line that he envisioned as the final chapter in a trilogy.

Lasseter and Catmull were unavailable for comment Wednesday because they were visiting Disney's Burbank studio, addressing the animators who would soon report to them.

In a move some saw as symbolic, Tuesday's announcement of the acquisition deal was made from Pixar's Emeryville, Calif., headquarters, where Lasseter and Catmull will continue to be based.

The issue of sequels had long been a major bone of contention between Jobs and former Disney chief Michael Eisner. Although Disney had the right to control them under its 15-year co-financing and distribution agreement with Pixar, Jobs had made clear that it would do so at its peril.

Last year, Eisner gave his blessing to launch the Circle 7 Pixar sequel unit. A month later, Jobs told analysts, "We have made the decision not to actively participate in creating sequels to our films co-financed by Disney."

Jobs has repeatedly said that despite the success of 1999's "Toy Story 2" — which grossed more than $245 million domestically — he would rather have Pixar focus on creating new stories than work on sequels.

One of the first cracks in the companies' otherwise solid partnership came in 2001 when Eisner and Jobs had a public spat over a proposed "Toy Story 3" sequel.

Eisner insisted on standing by the letter of Disney's contract stipulating that sequels did not count toward the films Pixar owed the studio. Jobs argued that they should count.

Now, when it comes to sequels, it is Pixar that will decide what counts.
_________________
"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
Wink

"Superman can't be emo. He can't cut himself."-CP

Daikun · **Daikun**

From Toon Zone:


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