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[Kristof]

From http://www.imdb.com

 

Will Disney Buy Pixar?


Despite the expressed hopes that Disney CEO Robert Iger and Pixar Chairman Steve Jobs would reach an agreement before the end of the year, talks are dragging on longer than expected, and a deal may not be forthcoming until next year -- if one materializes at all, the Wall Street Journal reported today (Thursday), citing people familiar with the talks. Besides discussing what fees and/or percentages Disney ought to pay Pixar for distributing its movies, the two sides are also discussing the possibility of Disney buying Pixar outright and, in effect making it Disney's animated division, the Journal said. Credit Suisse First Boston analyst William Drewry, who favors such a plan, said that under it, Jobs could become a member of the Disney board and a significant shareholder. But Kevin Landis, chief investment officer at Firsthand Funds in San Jose, CA, warned that "in buying [Pixar], there's the risk you destroy what makes it special." Other analysts also pointed out that Pixar shares are up 28 percent this year and that the company's market value may be prohibitively high for Disney.

[Kristof]

http://www.mickeynews.com

Pixar Animation Studios, creator of "The Incredibles," and The Walt Disney Co. are rumored to be on the verge of a deal -- either a new distribution pact between the longtime partners or the possible sale of Pixar to Disney.
Pixar CEO Steve Jobs and Disney CEO Robert Iger have been in talks to prolong their long-term distribution agreement, which ends with this summer's release of the movie "Cars."

According to the Los Angeles Times, two sources close to the deal said ongoing talks have been turning to Disney acquiring all or part of Emeryville-based Pixar. In that case, Jobs, also CEO of Apple Computer, would become a major Disney shareholder and possibly the company's chairman.

Disney and Pixar have no official comment.

Disney has been struggling to regain its crown as animation king, as Pixar has enjoyed a perfect record of six straight blockbusters, including "Finding Nemo" and "Monsters Inc."

Under their soon-to-expire deal, Pixar produces the movies and Disney markets and distributes them worldwide for a fee. The two companies split all costs and profits. As Pixar's success has grown, Jobs has said he wants a deal with Disney or another studio that would allow Pixar to keep the profits from its films while paying its partner a distribution fee only.

Past talks between Pixar and Disney fell apart in January 2004 due to friction between Jobs and Disney's then-CEO Michael Eisner. Iger, Disney's new CEO, has been courting Pixar for a new distribution deal since being tapped as successor last spring.

Analysts are questioning whether a full acquisition of Pixar would be a good move, even for a media conglomerate the size of Disney. Pixar's market value is nearly $7 billion and Disney would likely pay a premium for the company.

"Even under optimistic assumptions, the deal would likely be dilutive to Disney for the foreseeable future," wrote Michael Savner, Bank of America Securities analyst in a report on Thursday.

Savner added other doubts about the rumored deal, "We also expect that there could be integration/cultural issues," he wrote. "Arguably, what has made Pixar so successful is its independent culture and its singular focus on quality. The obvious risk to an acquisition is that both are sacrificed."

Some analysts have speculated that selling Pixar would allow Jobs to focus on running Apple Computer Inc., which is enjoying the popularity of its iPod products. But others doubt that Jobs would be willing to sell off even part of Pixar, which he bought in 1986 from George Lucas for $10 million. Jobs and Pixar's creative director, John Lasseter, a former Disney animator, established a independent and creative culture that draws in artists from around the world.

[Anthony]

I don't think I actually want Disney to buy Pixar.  They're best left on their own - it gives something for Disney to aspire to and work hard to please!  I definately hope they make some kind of new distribution deal though, if only because I don't think a Pixar film would be quite so special if it wasn't a Disney film too...  :?

[Kristof]

Just in from http://www.miceage.com / http://www.cnn.com

NEW YORK (Reuters) -- Walt Disney Co. is in serious talks about an acquisition of Pixar Animation Studios, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The newspaper report said terms under discussion would have Disney pay a small premium to Pixar's current stock market value of $6.7 billion.

The deal would be a stock transaction and make Pixar's chief executive Steve Jobs the biggest individual shareholder in Disney, the newspaper reported.

The talks are at a sensitive stage and other options are possible, including an agreement for Disney to distribute Pixar movies, the report said, citing people familiar with the situation.

The companies have been partners since Pixar began making feature films with "Toy Story." Currently Pixar and Disney split costs, and Disney effectively has sequel rights to Pixar films.

Representatives for Disney and Pixar could not immediately be reached for comment.

http://www.cnn.com/2006/BUSINESS/01/19/ ... index.html

[Kristof]

From http://www.mickeynews.com

Walt Disney Co. Chief Executive Officer Robert Iger, less than four months into the job, is planning the media company's biggest acquisition in 10 years.
A purchase of Pixar, maker of ``Finding Nemo'' and ``Toy Story,'' would cost about $7 billion and be Burbank, California- based Disney's largest purchase since buying Capital Cities/ABC Inc. for $19 billion in 1996. The two companies are in talks for a transaction, a person briefed on the talks said yesterday.

Buying Pixar would be Iger's boldest move since taking the helm from Michael Eisner on Oct. 1 and reflects his willingness to transform Disney's movie production. Pixar CEO Steve Jobs may join Disney's board, allowing Iger to tap the mind of an executive who through Apple Computer Inc.'s iPod devices has pioneered new ways to watch movies and television.

``It would definitely be a coup for Mr. Iger,'' said Andrew Seibert, a fund manager who helps oversee $1.2 billion at Pittsburgh-based S&T Wealth Management.

The companies are still in talks and may not reach a deal, the person said. Disney may buy all or part of Pixar or the two may settle on extending their distribution agreement, the person said. Disney spokeswoman Zenia Mucha and Pixar spokesman Nils Erdmann declined to comment.

Shares of Disney, the No. 2 U.S. media company, rose to a two-year high yesterday on reports of the talks, gaining $1.04 to $26.24. Emeryville, California-based Pixar, up 8.6 percent this year, rose $1.61 to a record $58.87.

Pixar would bring a company that had $273.5 million in sales in 2004 and a library that includes ``Toy Story,'' the first full computer-animated film, ``Finding Nemo'' and ``The Incredibles.'' Disney, which distributes Pixar films, has been slow to enter the fully computer-animated market on its own, releasing its first film ``Chicken Little'' last year, 10 years after ``Toy Story.''

`What If?'

``Bob Iger is a dynamic executive willing to do a big deal,'' said Aryeh Bourkoff, an analyst at UBS AG in New York, who rates Disney shares ``neutral'' and doesn't own them.

Iger, 54, was less than a week into the job as CEO when Credit Suisse analyst William Drewry on Oct. 6 wrote a report advocating a purchase of Pixar, titled ``What if Disney Buys Pixar?''

The deal would solve the ``top priority'' on Iger's list: the animation unit. Pixar may become Disney's de facto animation unit and its culture, which includes employee's penchant for zipping around on Razor scooters, would be maintained.

`Technology Visionary'

Jobs may join Disney's board as part of any deal, the Wall Street Journal reported yesterday. Having Jobs, 50, as a director would give the company a ``strong technology visionary'' that could help solve Iger's second priority: putting movies and ABC television shows such as ``Desperate Housewives'' on as many media as possible.

Owning 100 percent of Pixar would make it easier to agree on sequels to Pixar films, Drewry said. Pixar may generate an additional $1 billion to $2 billion of profit over five to six years in producing sequels to its movies.

At a price of $60 a share, Pixar wouldn't help Disney's earnings for the first two years and start adding to profit in 2008, Drewry said. If half is paid in stock, Disney's earnings would be cut by 4 percent in the first two years and break even the third, Drewry said. He didn't return calls seeking comment.

Six days after Drewry's October report, Iger shared the stage with Jobs in San Jose, California, as the two men launched Apple's new video iPod and announced an agreement for Disney's ABC shows to air on the devices. Jobs and Iger joked on stage and poked fun at a relationship that had been fractured under Eisner.

``We've actually enjoyed a great relationship with Steve through Pixar,'' Iger said. ``And it's great to be able to announce an extension of the relationship with Apple. Not with Pixar, but with Apple.'' His comments drew laughter from the crowd packed into the California Theatre. ``Maybe another time, we'll see,'' Iger said.

`Good Rapport'

Those remarks, made shortly before Wynton Marsalis played ``Flight of the Bumblebee,'' sparked talk the companies may forge more than a distribution agreement. An existing pact is set to expire in June with the release of ``Cars'' and talks between Jobs and Eisner to extend it had broken down. Jobs called Disney's film sequels ``pretty embarrassing,'' and Eisner said computer animation of human figures was ``pathetic.''

Iger and Jobs had since patched relations and the body language on stage indicated the two were talking.

``Visibly they seemed to have a good rapport on the stage,'' said Peter Jankovskis, director of research at Lisle, Illinois- based Oakbrook Investments LLC, which has $1 billion under management, including more than 700,000 Disney shares. ``They also alluded to the fact additional announcements would be coming and perhaps the sale of Pixar is that sort of an announcement.''

Pixar

Jobs's 50.5 percent stake in Pixar is worth $3.53 billion. Should Disney pay all stock for the transaction, Jobs would become the company's biggest shareholder, surpassing Roy Disney, nephew of founder Walt.

Selling to Disney would improve Jobs's ability to sell his stake in Pixar, which he formed in 1986 when he bought the computer-graphics division of Lucasfilm Ltd. for $10 million. He co-founded the company with former Lucasfilm Vice President Ed Catmull, now Pixar's president.

``Jobs is a maverick guy who's not afraid to speak his mind,'' said Joe Bonner, an analyst at Argus Research in New York who rates Disney shares ``hold.'' ``He's outspoken. He would not be a quiet little boy on Disney board.''

[Kristof]

http://www.mickeynews.com

It's official. The merger between Disney and Pixar is done. The Walt Disney Company is set to purchase the computer animation giant outright in a deal reportedly worth $7 billion. An announcement is expected later today.
Once partners, the two animation giants split in a very public feud. Unable to come to terms on an extension of their distribution deal, they seemed to have parted ways, Disney's current deal with Pixar was set to expire after the completion of 'Cars', a Pixar movie due out in 2006. But now the two family entertainment giants are getting back together, and getting closer than ever.

Forget distribution deals, Pixar is now just another appendage of the Disney family. In exchange for surrendering their autonomy to Walt's boys, Variety says the Mouse has given Pixar Animation Studios a stock deal of $59 per share. Pixar's animation division then becomes a part of Disney's animation unit.

At the same time, Pixar and Apple CEO Steve Jobs gets a seat on the Disney board, and chief Pixar creative officer John Lasseter, as rumored earlier this week, takes over the whole operation. That should put Lasseter in charge not just of Pixar's animation division, but all of Disney's existing animation departments as well. It also puts him in a position to turn things around for them. Once the undisputed leader in animated moviemaking Disney has long since been eclipsed by Lasseter's work at Pixar.

The truth is, that for the past few years Pixar has been what Disney used to be. With this buyout putting Pixar people in positions of responsibility, maybe Disney can now be that again. With Eisner gone, Steve Jobs could be on the fast track to becoming the new Walt Disney.

Now that an agreement has been reached, the deal now goes to the company's respective boards for final approval.

Pixar has distinguished itself as the clear leader in computer animated family entertainment over the past decade. They've never not produced a hit, and their resume includes instantly classic films like 'Toy Story', 'Monsters Inc.', 'Finding Nemo', and 'The Incredibles'.

[Anthony]

Wow.  Oh my gosh... it's happened!  Disney... buying Pixar....!!!!!  WHAT?!  I never, ever, ever, thought this would happen!  It's crazy!!!      

It all sounds waaay to good to be true.  It's still a *major* shame that Pixar will actually become Disney's actual animation unit, so it won't really be "disney" making animated films anymore, but overall this looks like it can only be good for Disney.  And having John Lasseter running the whole animation unit... perfect!  I'd say there's even a remote chance we could see a return of traditional animation, with such a forward-looking (CG pioneer) yet old-fashioned, sentimental guy running it all.  I'm sure he understands that Disney has a history and CG isn't the only type of animation that can be successful...  

Thanks for all these news updates, Raptor!  :wink:

[Anthony]

It gets better:

http://corporate.pixar.com/releaseDetai ... eID=185239

Pixar Executive Vice President John Lasseter will be Chief Creative Officer of the animation studios, as well as Principal Creative Advisor at Walt Disney Imagineering, where he will provide his expertise in the design of new attractions for Disney theme parks around the world, reporting directly to Iger.

Lasseter at WDI?  Cooool!  

Just one question - do you think they'll still keep the Pixar "brand"?  It would be shame for them to suddenly become "Walt Disney Feature Animation", I think they're too special and different.  Personally I think Disney should treat Pixar as they do the other studios under their wings (Touchstone, Miramax, etc.) and let them be themselves and have/keep their own identity as much as possible.  They should definately keep the Luxo Jr. logos in front of their films, is basically what I'm saying here!  :lol:

[Kristof]

:shock:  :shock:  :shock:  John Lasseter at Imagineering  :shock:  :shock:  :shock:

[Kristof]

Another the hotly discussed question among artists has been whether Mr. Lasseter - despite having made Pixar's fortune with a brilliant series of computer-generated hits - will bring back the traditional 2-D animation on which the Disney empire was built. Mr. Lasseter and other Pixar artists are known for their enthusiasm for the classic Disney films, and for the drawn features of the Japanese director Hayao Miyazaki.

Mr. Cook commented, "I've talked about reviving 2-D with John for some time, it wouldn't surprise me at all if these a project emerged that we would want to do in 2-D."

"To a lot of animators, John is kind of a King Arthur figure who represents the classic storytelling Disney was known for when Walt was alive," said the animator Pres Romanillos, whose work includes the evil Shan Yu in "Mulan."

http://www.nytimes.com/2006/01/25/busin ... .html?_r=2

[Kinou]

Pixar will still creating movie in their own studio in Emmeryville under the brand PIXAR, but now Lasseter and co will rule Disney Animation as well!

A return of the real Walt's values inside Disney Company via Pixar's talented and creative people. Great Day for Animation and Disney fans. Hope we'll see no more movies ruled by executives rather than artists (FAREWELL David Stainton!)

For those who understand french:
http://pixarroom.free.fr/DisneyPixar

[Kristof]

Thanks Kinoo, I wonder how Pixar fans feel about this?  How do you?


And here's (for once) an interesting newsbit from the DLP.info mainpage.  I've highlighted the interesting part.  

As has been widely reported in general news media The Walt Disney Company is to acquire its long time partner Pixar in an all-stock-deal (meaning no cash is handed over but only 2.3 shares in TWDC for each Pixar share) worth $7.4 billion. Besides bringing the succesfull CG animation studios (and their rights library) into the fold of TWDC (and thus making it easier for Imagineering to use these rights for new attractions) the deal has significant influences on The Walt Disney Company itself.
Steve Jobs, CEO and chairman of Pixar, will join the Board of Directors and Pixar's current President Ed Catmull will become the President of the Pixar and the Disney animation studios. Both of these will continue to operate as different operations in their current locations. Ed Catmull will report directly to Iger and Dick Cook, the chairman of The Walt Disney Studios. Furthermore John Lasseter, so far Pixar Executive Vice President, will become Chief Creative Officer of the animation studios.
While all these changes only remotely touch the Disneyland Resort Paris (and the other resorts) there is one change, that will shape the future of the Disney theme parks around the world: John Lasseter will also be appointed Principal Creative Advisor at Walt Disney Imagineering "where he will provide his expertise in the design of new attractions for Disney theme parks around the world, reporting directly to Iger"! John Lasseter actually is a former cast member of the original Disneyland where he captained Jungle Cruise boats (a stint he last year repeated during the 50th anniversary celebrations).

[Kinou]

It's a very good new for PIXAR as well and mostly for Disney animators!
For all those years, Executives ruled the creation of animated features (changing Chicken Little into a guy cause cutier, cancelled Fraidy Cat not marketable enough...) but now with Lasseter on board, we can expect the same thing as when Pixar let Brad Bird do THE INCREDIBLES the way he wanted totally, more freedom for art is positive!

[Kristof]

Another interesting article

Pixar's John Lasseter, creator of the "Toy Story" movies, will have authority to approve production of animated films at Walt Disney Co. after Disney completes its $7.4 billion purchase of Pixar this year.
Lasseter, 49, who will be chief creative officer of the combined Disney and Pixar animation studios, will have so-called ``greenlight'' authority, Burbank, California-based Disney said in a regulatory filing. Lasseter's decisions will be subject to approval by Disney Chief Executive Officer Robert Iger, 54.

The purchase agreement filed today outlines the companies' plans to preserve Pixar's independence, which Iger this week pegged as key to continuing the studio's run of box-office successes. The protections range from practical, such as setting up a committee to protect Pixar's culture, to symbolic, such as retaining the ``Pixar'' sign on the Emeryville, California-based studio's front gate.

``It's imperative for us to see to it that their culture is maintained,'' Iger said in an interview Jan. 24. ``Creativity is the most important, as I've been saying since I came to the job.''

Pixar Chief Executive Officer Steve Jobs, 50, who joins Disney's board under the purchase announced Jan. 24, will sit on the transition committee. He will be joined by Lasseter, Pixar President Ed Catmull, Iger, Walt Disney Studios Chairman Richard Cook and Disney Chief Financial Officer Tom Staggs.


 
The group will meet once every other month at Pixar's headquarters, the companies said in the filing with the U.S. Securities and Exchange Commission.

Pixar films will be branded ``Disney Pixar.''

Shares of Disney fell 36 cents to $25.08 at 4:01 p.m. in New York Stock Exchange composite trading. Pixar fell 96 cents to $57.06 in Nasdaq Stock Market composite trading.

The companies agreed that Pixar would pay Disney a $210 million termination fee if the sale isn't completed under certain conditions, including a competing offer that breaks up the deal.

[Kristof]

Interesting article about John Lasseters role in the Disney Company now.

In the wake of its $7.4 billion acquisition of Pixar, the Walt Disney Company has been mum about what role John Lasseter, Pixar's chief creative officer, will play in reviving Disney's storied animation division, except to say that it is a big one.

After the premiere of the latest Pixar film, "Cars" (which Mr. Lasseter directed), at the movie theater industry's annual conference in Las Vegas last week, Mr. Lasseter gave some hint about what he planned to do in a postmerger Disney.

Mr. Lasseter said that he and Edwin E. Catmull, Pixar's president, who will become president of the two divisions, would spend eight days a month at Pixar's headquarters in the Bay Area and eight days at Disney's animation headquarters in Burbank, and would reserve five days to be spent at either studio. Mr. Lasseter said that the two men would be able to watch film of coming movies and hold meetings with film directors and artists if they were not together in person, often through videoconferencing. Pixar is already set up that way so animators can easily communicate with one another. "Even if I can't be in Los Angeles, I can be watching reels," said Mr. Lasseter. "I can be looking at the art direction."

Mr. Lasseter said at a recent Disney annual meeting that he wanted to bring back some of the talented filmmakers who left Disney when the company abandoned hand-drawn animation. While Mr. Lasseter did not name names, some in the industry have speculated that Mr. Lasseter was interested in veterans like Ron Clements and John Musker, who worked on Disney hand-drawn hits like "Hercules" and "The Little Mermaid."

One Disney veteran not likely to return is Jeffrey Katzenberg, a former Disney executive and the chief executive of rival DreamWorks Animation, although he still has a keen interest in the company. Mr. Katzenberg set off a flurry of whispers and murmurs in Las Vegas when he entered the theater to watch "Cars" and was seated in a V.I.P. section reserved for Disney's guests.

Mr. Lasseter had less to say about what was in the works for Disneyland and Disney's resorts in Florida, Tokyo, Paris or Hong Kong. But he said he would be working closely with the creators of theme park attractions to develop the look and style of new rides at the same time the studio was developing its animated films, a risky departure from the company's old practice of opening attractions long after a movie left theaters or was a hit on DVD.

"I love the parks so much I just keep thinking about the rides and developing movies," he said. "I want to bring people in so they can start talking about the rides early on."

Source: The NYTimes
http://www.nytimes.com/2006/03/20/busin ... seter.html