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Walt Disney World (WDW) News Discuss Disney Board agrees to Pixar Buyout in the News & Rumors forums; From Business Week Online: Disney-Pixar: It's a Wrap The deal, which would make Steve Jobs the Mouse House's biggest shareholder, appears to be done, and it could shake up the ...
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    crcormier is offline A-Ticket holder
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    Disney Buys Pixar - UPDATE - IT'S OFFICIAL

    From Business Week Online:


    Disney-Pixar: It's a Wrap

    The deal, which would make Steve Jobs the Mouse House's biggest shareholder, appears to be done, and it could shake up the industry



    The merger of high tech and entertainment seems to have arrived. At an all-day meeting on Jan. 23, Walt Disney's (DIS ) board of directors agreed to buy Steve Jobs's Pixar Animation (PIXR ) powerhouse for about $7 billion, BusinessWeek Online has learned. Jobs, who's also chief executive of Apple Computer (AAPL ), would become Disney's largest shareholder and take a seat on the Disney board, according to sources with knowledge of the deal.

    The transaction could transform Disney, whose own animated films have been less than spectacular in recent years, into the animation dynasty it was during the early 1990s, when it turned out such hits as Beauty and the Beast and Lion King. But just as important, the acquisition will usher in a new era in which Disney, with Jobs and Disney CEO Bob Iger allied, could rewrite the rules of how entertainment is distributed digitally via new consumer technologies.

    Additional specifics about the deal aren't yet clear. As of late Jan. 23, the agreement still had to be approved by Pixar's board of directors, the sources say. Disney's board approved the transaction with the expectation that it could be announced on Jan. 24. The terms include giving Jobs an estimated 7% stake in Disney and letting Pixar's top creative executive, John Lasseter, have a key role in advising Disney in creative matters. It's expected that Pixar, which made such animated blockbusters for Disney as Toy Story, Monsters, Inc., and The Incredibles, would continue to work from its Northern California headquarters.

    MORE CORDIAL NOW. An immediate announcement of the deal was held up so that Jobs and Pixar top officials could personally tell Pixar executives, presumably on the morning before the announcement was made public. A Disney spokeswoman declined to comment beyond denying that a deal had been reached.

    If completed, the agreement would end a long and initially stormy negotiating process between the two companies (see BW Online, 1/20/06, "Will Steve Jobs Be Disney's Big Cheese?"). The companies' existing agreement, in which Disney and Pixar share the cost of making the films while Disney releases them, was scheduled to end this summer when Pixar delivers the final film, Cars, under that agreement. Since then, Jobs has been talking to other studios about doing a distribution deal, but he has kept open the lines of communication with Disney executives. Relations between the two companies improved last year, when Disney CEO Michael D. Eisner, with whom Jobs often sparred, resigned.

    Jobs's relationship with Eisner's successor, Bob Iger, is much more cordial, and Iger nurtured their ties by making Disney TV shows like Desperate Housewives and Lost available for the video iPod that Apple began selling last year. Moreover, Iger and Jobs get along well on a personal level, as do Jobs with Disney studio chief **** Cook, the initial architect for the Disney side.

    FORWARD THINKER. Whether or how quickly Jobs can push Disney further into digital distribution for films is unclear. But analysts have long predicted that Apple will eventually introduce living room gear to make that more feasible. Many Apple rumor sites have suggested that Jobs & Co. are working on a version of the Mac Mini that would be designed to connect to the TV and could be operated via Apple's Front Row software and Apple Remote, which are already available on the iMac desktop PC. Such a machine would let customers who download movies via Apple's iTunes Music Store watch them on their TVs.

    Iger, who's an early adopter for many new technologies, is considered among the most forward thinking of media executives and is likely to welcome accelerated delivery of entertainment over the Web and through wireless means, if safeguards could be worked out to secure the content.
    Last edited by crcormier; 01-24-2006 at 05:54 PM.

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    mini-V's Avatar
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    I saw this too. I'm not a business mogul, so I can't figure out why they have to buy out Pixar instead of just work together. Sometimes I think companies can have too much power all in one place and they lose the abilty to step back and get feedback from people who aren't part of the controlling interest. Time will tell if this is a smart move for both companies.
    mini-V What will you celebrate?

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    So do you think this is a good thing for Disney? I would love to hear opinions?


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    Man.. They must have turned down my offer!!

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    jarmitc2032's Avatar
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    I hope it all works out

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    crcormier is offline A-Ticket holder
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    It could be a great thing. Or it could be disasterous for Pixar. What Disney will want is more product from Pixar, but what the need to do to keep the quality of Pixar is to leave them along managerially, which may happen since Iger has sent the management back to the division level. What we may see though with the merger of Iger and Jobs is Disney becoming more of a pioneer in the digital entertainment venue. What is good for Disney World is that they will have available more great characters in the future to tie into their theme parks. Only time will tell at this point, and we still need to wait and see if the Pixar board approves (I am going to assume they will.)

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    I hope for the best-I think it is a win-win for disney, as far as Pixar, it depends on whether or not they can continue to produce such high quality products under Disney's thumb-I hope so!
    I am in need of some Disney magic!!

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    AlecTronic's Avatar
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    That is really unexpected, though very good news.


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    Mixed feelings... mixed feelings...


    "I really hope that people won't cherry-pick my quotes in the future
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    Not sure I like Disney just out inout owning Pixar. But let sit back and see what the final vote is.




    YES I"M GOING BACK AGAIN FOR HALLOWEEN

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    crcormier is offline A-Ticket holder
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    It's official - From Market Watch:



    Disney, Pixar agree to $7.4 billion deal By Russ Britt, MarketWatch
    Last Update: 4:41 PM ET Jan. 24, 2006 LOS ANGELES (MarketWatch) -- After months of negotiations, Walt Disney Co. will acquire Pixar for $6.3 billion in stock plus $1.1 billion of the computer animation specialist's cash, the companies said Tuesday.


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

    Both Disney and Pixar shares were halted just prior to the announcement, which occurred shortly after the closing bell. Disney ended trading Tuesday up nearly 2% while Pixar was off 1.2%.

    Under terms of 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 shareholder.

    Pixar will be combined with Disney's animation department and the new operation will be headed by Ed Catmull, Pixar's president. Catmull will report to Disney Chief Executive Robert Iger and studio chief **** 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.


    Russ Britt is the Los Angeles bureau chief for MarketWatch.

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    Sam I Am's Avatar
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    Quote Originally Posted by Disney Newsreel
    Disney Acquires Pixar for $7.4 Billion
    Furthering its strategy of delivering outstanding creative content, Bob Iger, president and CEO of The Walt Disney Company, announced today that Disney has agreed to acquire computer animation leader Pixar in an all-stock transaction, expected to be completed by this summer.
    Under terms of the agreement, 2.3 Disney shares will be issued for each Pixar share. Based on Pixar's fully diluted shares outstanding, the transaction value is $7.4 billion ($6.3 billion net of Pixar's cash of just more than $1 billion, based on Disney's closing share price of $25.52 on Jan. 23).
    This acquisition combines Pixar's preeminent creative and technological resources with Disney's unparalleled portfolio of world-class family entertainment, characters, theme parks and other franchises, resulting in vast potential for new landmark creative output and technological innovation that can fuel future growth across Disney's businesses.
    Garnering an impressive 20 Academy Awards, Pixar's creative team and global box office success have made it a leader in quality family entertainment through incomparable storytelling abilities, creative vision and innovative technical artistry.
    "With this transaction, we welcome and embrace Pixar's unique culture, which for two decades, has fostered some of the most innovative and successful films in history, Bob said. "The talented Pixar team has delivered outstanding animation coupled with compelling stories and enduring characters that have captivated audiences of all ages worldwide and redefined the genre by setting a new standard of excellence.
    "The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses. This investment significantly advances our strategic priorities, which include first and foremost delivering high-quality, compelling creative content to consumers, the application of new technology and global expansion to drive long-term shareholder value."
    Pixar President Ed Catmull will serve as president of the new Pixar and Disney animation studios, reporting to Bob and **** Cook, chairman of The Walt Disney Studios.
    In addition, Pixar Executive Vice President John Lasseter will be chief creative officer of the animation studios, as well as principal creative adviser 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 Bob.
    Pixar Chairman and CEO Steve Jobs will be appointed to Disney's Board of Directors as a non-independent member. With the addition of Jobs, 11 of Disney's 14 directors will be independent. Both Disney and Pixar animation units will retain their current operations and locations.
    "Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," Jobs said. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."
    "Pixar's culture of collaboration and innovation has its roots in Disney Animation. Our story and production processes are derivatives of the Walt Disney 'school' of animated filmmaking," said Dr. Catmull. "Just like the Disney classics, Pixar's films are made for family audiences the world over and, most importantly, for the child in everyone. We can think of nothing better for us than to continue to make great movies with Disney."
    The acquisition brings to Disney the talented creative teams behind the tremendously popular original Pixar blockbusters, who will now be involved in the nurturing and future development of these properties, including potential feature animation sequels. Pixar's 20-year unrivaled creative track record includes the hits Toy Story, Toy Story 2, a bug's life, Monsters, Inc., Finding Nemo and The Incredibles.
    Disney will also have increased ability to fully capitalize on Pixar-created characters and franchises on high-growth digital platforms such as video games, broadband and wireless, as well as traditional media outlets, including theme parks, consumer products and live stage plays.
    "For many of us at Pixar, it was the magic of Disney that influenced us to pursue our dreams of becoming animators, artists, storytellers and filmmakers," Lasseter said. "For 20 years we have created our films in the manner inspired by Walt Disney and the great Disney animators great stories and characters in an environment made richer by technical advances. It is exciting to continue in this tradition with Disney, the studio that started it all."
    Added ****: "The wonderfully productive 15-year partnership that exists between Disney and Pixar provides a strong foundation that embodies our collective spirit of creativity and imagination. Under this new, strengthened animation unit, we expect to continue to grow and flourish."
    Disney first entered into a feature film agreement with Pixar in 1991, resulting in the release of Toy Story, which was hailed as an instant classic upon its release in November 1995. In 1997, Disney extended its relationship with Pixar by entering into a co-production agreement, under which Pixar agreed to produce on an exclusive basis five original computer-animated feature films for distribution by Disney. Pixar is currently in production on the final film under that agreement, Cars, to be distributed by Disney on June 9.
    The Boards of Directors of Disney and Pixar have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antritrust Improvements Act, certain non-United States merger control regulations, and other customary closing conditions. The agreement will require the approval of Pixar's shareholders. Jobs, who owns approximately 50.6% of the outstanding Pixar shares, has agreed to vote a number of shares equal to 40% of the outstanding shares in favor of the transaction.
    The Disney Board was advised by Goldman, Sachs & Co. and Bear, Stearns & Co. The Pixar Board was advised by Credit Suisse.
    Separately, the Disney Board approved the repurchase of approximately 225 million additional shares, bringing the Company's total available authorization to 400 million shares. Since August 2004 through the end of December 2005, Disney has invested nearly $4 billion to purchase nearly 155 million shares. Disney anticipates further significant share repurchases going forward, reflecting Disney's continued commitment to returning value to shareholders over time.
    I think I like this:
    Quote Originally Posted by newsreel
    In addition, Pixar Executive Vice President John Lasseter will be chief creative officer of the animation studios, as well as principal creative adviser 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 Bob.

  13. #13
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    Disney and Pixar

    I personally think its a great idea! i was really upset when Disney and Pixar were talking about severing their ties since they produced Monsters Inc, Incredibles, Finding Nemo, etc. I hope things go really well for everyone involved. I wonder what Michael is thinking.......
    Karen S.K. fellow scrapbooker and disney addict since September 12th, 1985

    It all started with a mouse..... and noone in my family can stop it!!!:mickey:

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    I think this is wonderful. It has the two biggest animated film makers coming togethor! I feel Disney will be back on top with this move.

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    Some have said that having the two companies as one will be a risk if Pixar doesn't keep up the good work.

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