January 23, 2006

Disney Ready To Buy Pixar

pixar logoLooks like that great divorce between Pixar and Disney is about to get some Dr. Phil love and reconcile. The word is that the board of Pixar is meeting on Monday to vote on the $7 Billion Dollar (said in my best Dr. Evil voice) purchase offer. That's a lot of mouse my friends.

How does the deal break down? Will Steve Jobs still have control of the company? The good folks over at Digital Spy give us this:

The deal will make Steve Jobs - who created Pixar in 1986 - Disney's largest shareholder. The Apple boss created Pixar with a $10m purchase of the computer animations division of Lucasfilm. He will make around $3.5bn from the deal.
I'd say making over 30x your investment isn't a bad day at the office. Good grief. My mind can't even comprehend that number!

The 2 big questions I have about this are:

1) Will the current Pixar brain trust still have creative control without Disney interference when it comes to making their movies? Pixar has already shown it's film beat the Mouse House by a MILE when it come to quality of their films.

2) Most importantly at this point... does Pixar take over the Toy Story 3 project from the Disney in house team? If so, that in my books makes this whole deal worth it (as a fan that is).

If any of you know the answers to these questions, please let me know. Cheers!


Posted by John Campea at January 23, 2006 05:47 AM


Comments

Disney put Clay Aiken and Nick and JEssica singing on the Aladdin DVD. They have Raven Simone on the Mulan DVD and Lindsey Lohan doing a horrible Herbie sequel. They made rediculously bad sequels to every single "instant-classic" animated movie they ever made. Are these the people you really want to have in direct control of Pixar's franchise r ich future?

I get how its mutually beneficial to both sides, but this deal will only hurt us as viewers in the end. It pretty much guarantees that disney channel stars like Christy Carlson Romana and Raven Simone will have a big role in the next few Pixar movies as well as the soundtrack. And since Bugs Life never spawned a sequel then since its now a Disney property then how about this great idea... "Bugs Life 2: Hopper's Return" fully animated by a 4th rate team and featuring no original voices except Brad Garret.


Pixar is probably the ONLY studio batting 1000 right now so this is probably the worst thing that can ever happen to its fans. But on the other hand, at least we'll now see Disney movies on iTunes for only $2 less then the DVD.

Posted by: Cole at January 23, 2006 10:03 AM

I see this as a good thing. The apprentice has become the master.

Pixar was contracted to Disney, then when Disney started sucking donkies, Pixar said, "We can live without you"

And they did.

Now if Jobs becomes the majority shareholder of Disney, then basically Pixar would own Disney right?? I mean they buy Pixar from Jobs, but then give him majority stock in the company that owns Pixar. I dont see how this is a bad thing for Jobs.

Majority stock implies to me that he will have a say in how the company operates, and I am sure he will take special interest in the Pixar department.

This might save Disney! Ironic.

Posted by: Rodney at January 23, 2006 11:15 AM

Hey Rodney,

Don't confuse being the "largest" shareholder with being the "majority" share holder.

For example... if there were 100 shares... and no one had more than 3, but Steve Jobs had 5, then that makes him the LARGEST share holder.

But to the the "MAJORITY" shareholder, Jobs would have to own 51 shares.

Posted by: John Campea at January 23, 2006 11:21 AM

**Majority stock implies to me that he will have a say in how the company operates, and I am sure he will take special interest in the Pixar department.**

John already corrected you on "majority stock" so i wont bother. But another major point youre missing is that Apple is Steve Jobs baby, Pixar is just a cool investment that happened to blossom with very little effort from him directly. So Steve Jobs will have very little interest in how Pixar is treated in comparison to the benefits he just acquired.

1) Disney will probably become a major resource to itunes video. If people will spend $1.99 for a 3minute short and $9.99 for 20minutes of SNL skits then they can charge DVD prices for Toy Story or Lion King.

2) Disney theme parks all have a technology area called "Innoventions". A decade ago apple was there and has since been replaced by IBM. Apple being the "coolest" PC's out there then they can now flood themeparks with their technology to promote their Apple products.

3) Steve Jobs is an incredible spokesman, an icon for the computer age and the coolest douchebag around. But the things he is idolized for is 100% completely misdirected.
- Woz was the brains behind the Apple computer while Jobs was just the mouth.
- Jonathan Ive designed the iPod and iMac while Jobs got the credit for modernizing computers
- Lucas started Pixar while Jobs just bought it from him
- John Lasseter made sure the company kept rediculously tight control to ensure a quality product while Jobs just sold them to a company that is known for destroying the very things that earned them respect.
- Apple's 4% market share means that despite all the praise Jobs gets, his leadership has made him a media darling but hasn't translated to converting consumers.

Don't get me wrong. I am a huge mac fan and Jobs earned his place in history as far as technology goes. But don't think that him having a large share means he's going to put Apple on the backburner so he can make sure Pixar is treated right. He's probably out there trying to figure out where to spend his 7bills (probably acquiring Adobe).

Posted by: Cole at January 23, 2006 02:16 PM

Call me naive, but I can't believe Steve Jobs would sell Pixar to Disney, become their largest shareholder amd as Bloomberg.com reports, may be in line for a Disney board of directors spot,just to let them turn the Toy Story franchise and other Pixar projects into crap.
As smart as Jobs is, I would assume he wouldn't sell Pixar without the intention of them retaining creative control of their films, thus ensuring the quality(and cash flow)they've provided the past 10 years.
Also, letting Pixar control their own projects, may give Disney the impetus to re-open their traditional animation studio that was closed by Eisner last year. Having the Pixar issued settled and knowing what a cash cow that will probably be, they can concentrate on the type of animation they do best. They can infuse that division with money from the Pixar films, until it can support itself by turning out quality movies again.

Posted by: Larry F. at January 23, 2006 02:28 PM

Just for the record Mr. Campea, $3.5B = 350 x $10M, so Jobs stands to make 350 times his initial investment.

Posted by: Stuka at January 23, 2006 11:26 PM

Hey Stuka,

I stand corrected.

:)

Posted by: John Campea at January 24, 2006 12:40 AM

**Call me naive, but I can't believe Steve Jobs would sell Pixar to Disney, become their largest shareholder amd as Bloomberg.com reports, may be in line for a Disney board of directors spot,just to let them turn the Toy Story franchise and other Pixar projects into crap.**

Why not? Seriously, when has Jobs ever had anything to do (in terms of creativity) with the success of Pixars films. Steve Jobs is the money and the name but John Lasseter and crew are the ones who have always been in charge. And thats what made Pixar great. People in charge who cared more about the product than deadlines or profits.

Again, Jobs baby is apple. Pixar is just something he fell into that built onto an already healthy ego. But as far as giving Jobs credit for Pixars success then thats severely misplaced.

Posted by: Cole at January 24, 2006 03:58 PM

Well that's why I said you can call me naive :).
Actually, I never gave credit for Pixar's success to Jobs. I figured that if Jobs is on the Board, he'd have an monetary incentive to help insure Pixar would remain successful.
The latest news is for John Lasseter "to become Chief Creative Officer of the animation studios and Principal Creative Adviser at Walt Disney Imagineering, which designs and builds the company's theme parks." I'm quoting what's being reported on the LA Times website.
I would think this would be good news: Eisner gone, Jobs in and Lasseter in charge of NOT ONLY the animation studios, but also the lead adviser of the theme parks, which should give that division a boost(especially at Disneyland and overseas) that's sorely been needed since Eisner appointed his cronies in the mid 90's to run the parks.

Posted by: Larry F at January 24, 2006 06:05 PM

Alladin - with Clay Aiken's "Proud of your boy" was an enormous success and was , in a big part, responsible for Alladin sales. Is Alan Menken still part of the new venture?. Do you suppose they will continue to use stars like Clay Aiken to promote new projects.? I hope so. Not a big fan of Clay Aiken, but thought he was just wonderful in introducing the song - Alan Memken's approval was obvious. Ihope we will see more of this in upcoming animated DVDs.Now that I see what Clay Aiken can add - I would like to see more of him associated with Disney. GiGi Palm Beach Florida

Posted by: [email protected] at March 8, 2006 11:44 AM