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Sun, Mar 21, 2010 - 03:22 PM EDT  —  AAPL: 222.2499 (-2.4001, -1.07%)  |  NASDAQ: 2374.41 (-16.87, -0.71%)

Disney completes Pixar acquisition; Steve Jobs now Disney’s single largest shareholder
Friday, May 05, 2006 - 05:39 PM EDT

Advancing its strategy of developing outstanding creative content, Robert A. Iger, President and Chief Executive Officer of The Walt Disney Company announced today that Disney has completed its acquisition of renowned computer animation leader Pixar. In the all-stock transaction, 2.3 Disney shares will be issued for each Pixar share. The deal, valued at $7.4 billion, was announced in January.

The deal makes Steve Jobs — chief executive of Pixar and also of Apple Computer Inc. — Disney's single largest shareholder, with a 7 percent stake in the company.

Dr. Ed Catmull, previously Pixar President, will serve as President of the new Pixar and Disney animation studios, reporting to Iger and Dick Cook, Chairman of The Walt Disney Studios. In addition, John Lasseter, previously Pixar Executive Vice President, 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. Steve Jobs, previously Pixar Chairman and CEO, has joined Disney's Board of Directors as a non-independent member. With the addition of Jobs, 11 of Disney's 14 Directors are independent.

"For the last 15 years, Disney and Pixar have shared one of the most successful partnerships in entertainment history," Iger said in the press release. "From 'Toy Story' through 'The Incredibles,' the success of these animated films was due to the creativity, innovation and immense talent of the phenomenal Pixar team, led by Steve, Ed and John. We also fully recognize that Pixar's extraordinary record of achievement is in large measure due to its vibrant creative culture, which is something we respect and admire and are committed to supporting and fostering in every way possible. As we begin the next chapter, all of us at Disney are pleased to welcome the incredibly talented Pixar team to our Company to continue to create quality entertainment for audiences to enjoy around the world."

Shares of Walt Disney climbed 69 cents, or 2.4 percent, to close at $29.09 on the New York Stock Exchange. In after-hours trading, Walt Disney shares climbed 8 cents to $29.17.

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Related articles:
Steve Jobs: no interest in being Disney exec, plans to spend more time at Apple - April 27, 2006
Biggest cheers reserved for Apple CEO Steve Jobs at Disney's annual meeting - March 10, 2006
Apple CEO Steve Jobs might launch bid for Disney - March 02, 2006
Stock futures up on speculation that Apple will snap up Disney - February 27, 2006
Barron's: Apple Computer could buyout Disney - February 25, 2006
Cringely wouldn't be surprised to see Apple+Disney+Pixar+others as single huge company in 5 years - January 27, 2006
Steve Jobs' arrival at the Magic Kingdom could have more thrills than trip to Disneyland - January 27, 2006
Report: Disney buys Pixar for approx. $7 billion, Steve Jobs to become Disney's largest shareholder - January 23, 2006

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May 05, 06 - 06:54 pm Comment from: bill gates

Would you rather me say "Steve Jobs is a computer nerd," or "First Post! Whoo hooo!" Huh? Cause I just said both.

May 05, 06 - 06:55 pm Comment from: MacMan

An old fable: A wise man walked through the woods. He came across a farm. The farmer said, "Look at my horse. Isn't it grand?" The wise man said, "Who's to say what is good or bad?" The wise man continued walking. The wise man came across the farm again the next day. The man said, "My horse ran away. Isn't that terrible?" The wise man said, "Who's to say what is good or bad?" The wise man returned the next day. The farmer said, "The horse returned with lots of wild horses. Isn't that great." "Who's to say what is good or bad?" said the wise man. Upon the his return to the farm, the farmer told the wise man, "My son broke his arm taming those wild horses. Isn't that horrible?" "Who's to say?" The next day, the wise man returned once more to the farm. The farmer explained, "The military came by looking for recruits. They passed up son because he had a broken arm. Everything was a good thing." "Bingo," the wise man said.

May 05, 06 - 06:57 pm Comment from: Renderman

Steve should have sold Renderman software to Apple before selling Pixar. It's worth a bundle.

May 05, 06 - 06:59 pm Comment from: the new and improved Bill Gates

I think you all would rather hear me say "MacMan is a nerd." Cause its true, & I already said it.

May 05, 06 - 07:05 pm Comment from: rasterbator

Will Steve get paid $1 a year?

May 05, 06 - 07:27 pm Comment from: rasterbator

An old fable: A bear shit in the woods.

May 05, 06 - 07:49 pm Comment from: Jeremiah

Damn I all I needed was b3 and I would have gotten Bingo. I'll get you wiseman.

May 05, 06 - 07:53 pm Comment from: Dee Nile

Macman - give up the trying to be an author.
Bad.

May 05, 06 - 07:59 pm Comment from: Damian

I just hope Disney don't screw up Pixar.

May 05, 06 - 08:16 pm Comment from: wonderboy

MacMan: I hadn't heard that one in a long time. I luv it -- thanks.

Dee Nile: MacMan's not trying to be an author -- as he said, it's "An old fable." And with some great wisdom to it -- imho.
Perhaps it was just a little too deep for rasterblaster.

May 05, 06 - 09:15 pm Comment from: Craven Moorehead

Doing some quick Cinco de Mayo cocktail napkin math, I calculated that Steve Jobs' 7 percent share of Disney stock is worth a paltry $3.93 Billion, based on today's closing price of the stock.

That ain't peanuts.

Considering that he bought Pixar from George Lucas at a relative fire sale price, and helped messrs Catmull, Lassiter et al do what they do best, I would say that it's been a very shrewd move by the Apple co-founder. If you're a Disney stockholder, today could be the start of a great future for the company.

And if that means that Steve can continue to be paid $1 by Apple (huge option grants and corporate Gulfstream jets notwithstanding), all the better. We read a daily cavalcade of anti-Apple noise by know-nothing pundits on the pages of this site. Truth be told, history will someday be kind to Steve Jobs, and remember him for being one of the best business minds of the past 50 years.

Kudos, Steve.

May 05, 06 - 10:23 pm Comment from: mac user 47

That's not wisdom, just pseudo-wisdom... Some things ARE bad (just as some are GOOD). Getting run over by a freight train doesn't have a good ending.

May 05, 06 - 10:33 pm Comment from: Rummy

mac user 47,

Your freight train story is a good ending for a lot of people if you happen to be a suicide bomber on the way to detonate in the mall.

May 05, 06 - 11:16 pm Comment from: .MacDude.

First!

May 05, 06 - 11:44 pm Comment from: MacMan

Some people just don't understand fables. That's fine. In Buddhism there are caterpillars and there are butterflies. For those who don't understand, there are some people saying the sale is good. Some say the sale is bad. Who is to say what the final out come is?

Disney put out poor animated films after Lion King and ruined it's name in animation. Pixar carried Disney's Nine Old Men torch and followed the old path. Those films are considered great animation. Now, Pixar is returning the Nine Old Men torch to Disney. Disney animation can return to its former glory under Pixar leadership. So, was Disney's "poor" animated films a good thing or a bad thing?

The Pixar sale does not happen if Disney had successful animation films. Disney fans like John Lassetter and Andrew Stanton and Pete Doctor and Brad Bird and many other fans at Pixar would be shut out and turned away by Disney.

There are those who worry that Disney will absorb Pixar causing Pixar to lose its identity and way of life. That's why people worry about the Pixar sale.

P.S. If you don't know who the Nine Old Men are, then you don't know animation. Look them up.

May 05, 06 - 11:48 pm Comment from: Nuclear Kid

Keep Iger - He's really starting to shine. As for Steve, let's use that newfound time working on the cell phone and digital living room stuff, will ya smile

May 05, 06 - 11:49 pm Comment from: MacMan

To set the record straight... from a Pixar rep I met... Steve bought Pixar for $5 Million, not $10 Million. Steve paid $5 Million and added $5 Million of his own money for Research and Development.

$5 Million purchase price + $5 Million seed money + 20 years = $3.93 Billion

May 06, 06 - 12:14 am Comment from: Teflon

MacMan... sounds like a script for the next Disney film!

May 06, 06 - 12:47 am Comment from: mac user 47

Rummy,

Yes, good for those who would have been killed by the bomb - but still bad for the man killed by the train, which was my original point.

... or the suicide bomber might have had a non-fatal epiphany instead, and not followed through with it - instead becoming an influence in convincing other "would-be-suicide-bombers" that there is a saner alternative.

... or let's just say the man hit by the train wasn't a suicide bomber but instead just a regular guy on the way home to see his family. There's nothing good about that. Especially since the main person qualified to say if it was "good" or "bad" just died (my guess is, since we are talking about a sane person who wants to live and see his family, that he would choose to not be hit by the train, but maybe I'm out in left field...).

May 06, 06 - 12:57 am Comment from: enter-me steve

Oh God,,,now Steve is the largest Disney shareholder. How it affects all of you, I have no idea, but I know you're hard thinking about it. Go ahead and fantize that steve gets those share and that the sametime you have the chance to suck on him simultaneously. Yes, you are probably blowing loads on your stomach right now thinking of it.

May 06, 06 - 01:23 am Comment from: MacMan

Mac User 47 you're missing the point.

It is not a discussion that all things are good. It's a discussion that we can not determine what is good or bad about a situation until everything plays out. The Pixar deal could still be bad. What if the next CEO decides to stop Pixar's way of life? Example, decisions on movies are to be made by executives, not Directors. Pixar is currently a director base studio, not an executive based studio. The deal could still be a bad deal if the next CEO or even Iger decides Pixar should transform into a corporate landscape.

Check out the second disk of Monsters, Inc. if you need to see what life at Pixar is like as of right now.

Wow! rolleyes

May 06, 06 - 02:47 am Comment from: winmacguy

Disney's Nine Old Men
http://en.wikipedia.org/wiki/Nine_Old_Men
Disney's Nine Old Men were the core animators (some of whom later became directors) that created the Disney studio's most famous work, from Snow White and the Seven Dwarfs onward to The Rescuers. Walt Disney jokingly called this group of animators his "Nine Old Men", referring to what Franklin D. Roosevelt called the nine judges of the US Supreme Court, even though the animators were in their thirties and forties at the time.

May 06, 06 - 07:21 am Comment from: Lightivity

MacMan:

You can't compare accidental death to a stock take over and believe you can extrapolate universal truths about good and bad from that. Makes no sense and seems pretty tasteless if you ask me.

Philosophical lingering at its worst.

May 06, 06 - 11:04 am Comment from: mac user 47

MacMan:

I was going by your story. Because your wise man in that story arbitrarily decided at what point in time to evaluate whether the situation was Good or Bad. In other words, if you continue out in time past the soldier event, you can think of all kinds of scenarios where it could be flipped back and forth (good/bad).

My point is that individual events/actions can be good and bad in themselves, even though there may be a larger effect that is different to others or later in time.

For instance. Jesus - completely innocent- was murdered/excecuted on the cross. That is a seriously Bad event, but overcoming death and being alive now (which wouldn't have been possible without the first event) is seriously Good for everyone else who want's a relationship with God. However, that doesn't change the action of murdering Jesus to anything but evil in and of itself.

May 06, 06 - 11:59 am Comment from: Socrates

Macman-

So Dan Millman taught you something, did he? Good, because he's a good person to learn from.

May 06, 06 - 12:02 pm Comment from: Jesus

Judas died in my place.

May 06, 06 - 12:04 pm Comment from: Socrates

Macman-

mac user 47 is right, you got the ending wrong. Go talk to Dan Millman some more, he had trouble with that story too.

May 06, 06 - 12:40 pm Comment from: dee-oh

It was originally the "10 Old Men of Animation," until veteran animator Art Babbitt got into a fistfight with Walt during the animation strike of the 1940s.

May 06, 06 - 01:32 pm Comment from: Arbie

Damian: "I just hope Disney don't screw up Pixar."

Not to worry. Disney dumped Andrew Stanton from their roster of dead weight.

May 06, 06 - 04:44 pm Comment from: wonderboy

mac user 47: All's well that ends well.

BTW: Jesus knew in advance of his crucifixion that he was able to revive himself (he had already raised the dead). So knowing that in advance certainly lessened the impact for him.

May 06, 06 - 05:16 pm Comment from: Edgeley Exile 52 & Safe

So can someone tell me what the link between Steve Jobs @ Pixar and The Messiah is?

On second thought, don't answer that. Too obvious grin

May 06, 06 - 05:30 pm Comment from: mac user 47

wonderboy...

Uhm... no. Try that on yourself: Let yourself know that you are going to slam your head into a wall and then go ahead and do it... Tell me if it hurts less than if didn't know in advance.

May 06, 06 - 07:15 pm Comment from: wonderboy

mac user 47: Some physical pain -- OK, agreed. Maybe....
Don't forget he had already demonstrated that he could heal the sick -- probably healed their pain, too since that's usually part of it.

Did he use that ability on himself? I certainly would -- and I have to assume that he was at least as intelligent as I am.

So maybe all these "suffering" stories that seem to mostly get people into guilt trips need to be reconsidered in light of his demonstrated ability to perform miracles.

Which is it. Did he have the power of performing miracles -- or not?

May 06, 06 - 09:54 pm Comment from: MacMan

First, Who the hell is Dan Millman? The story is an old Taoist story.

Second, Lightivity: I'm not the one who comparing Pixar's merger with an accidental death. That's other people. I didn't even mention an accidental death.

Third, we look at events as bad at one point in time, but later (hindsight 20/20) can turn out to be a good thing that happened. The opposite is true as well.

What if the story ended with instead of the military (keep in mind ancient Taoist origins time frame) passing by the son, they took the farm? The farmer would have said, everything was bad. The wise man would have still said the farmer was right.

The point is that everything that seen as good now can turn out to be bad later. Also, what is seen as bad now can turn out to be good later.

May 06, 06 - 09:54 pm Comment from: mac user 47

Yes, God can perform miracles. But the bible says he was fully man and experienced everything men do, including temptation, pain, etc...

Wonderboy, you sound like those ridiculing Jesus as he was being crucified:

Mark 15: "31 The leading priests and teachers of religious law also mocked Jesus. "He saved others," they scoffed, "but he can't save himself! Let this Messiah, this king of Israel, come down from the cross so we can see it and believe him!"

Matthew 27: 39 And the people passing by shouted abuse, shaking their heads in mockery. "So! You can destroy the Temple and build it again in three days, can you? Well then, if you are the Son of God, save yourself and come down from the cross!"

...as to your comment about "suffering stories": It's the 'Gospel' (Good News) because Jesus is Alive. You know, like Paul Harvey or something, "the rest of the story" is the key, and it's in the bible.

May 06, 06 - 10:01 pm Comment from: MacMan

Was the sale of Pixar to Disney a good thing? I don't know. I'll wait to pass judgement. If Pixar keeps their way of life and movie making, yes it will be a good thing. No stupid contract negiations and John Lasseter can set Disney Animation back on the right path.

If Disney decides that Pixar should be more corporate and gut it the way they gutted Disney Feature Animation - selling most of the old animation drawing tables - then the deal is a bad thing.

*On a side note, there is a rumor that a janitor decided to lock up just enough drawing tables for one hand drawn feature animation somewhere on the Disney lot in a storage shed.

May 07, 06 - 03:09 am Comment from: wonderboy

mac user 47:

Wonderboy, you sound like those ridiculing Jesus as he was being crucified:

Not ridiculing Jesus -- just challenging people's (mis)interpretations of what the bible is really talking about and who and what the Supreme Being (the One who created the entire universe) really is and how we can have a realationship with Him.

The bible is like: "Relationship with God 101" and yet most "Christians" think it is the end-all and be-all of knowledge with respect to the Supreme. I'm not saying it is "wrong" -- just very introductory and limited. Remember who it was written for -- barbarians! People who would stone their neighbors to death in the street or crucify someone teaching outside the norm. Just barbarians. Believe me -- the Supreme knows how to speak to His audience in relevant (to them) ways.

...because Jesus is Alive:
Fine, but not in the physical at this point in time (unless there's something you're not telling). And when people are only alive in the spiritual world (or whatever you want to call it) -- that's what we on earth refer to as being dead.

When a human dies -- you probably believe that they go to heaven or hell. Fine -- but they are "dead" because they are not living in a physical body -- just in the spirit world. Unless we want to redefine these words and say that everybody who ever lived is not really "dead" -- they're still "alive" (just not in the physical world).

Therefore, in terms of the way our language is used, Jesus is NOT alive -- he is dead. Just like everybody else who lived and died.

If you would like to continue this conversation off-board (and are willing to stay rational, as you have been) -- let me know. These are important issues -- but this is probably not the most appropriate venue.

Sincerely, wonderboy

May 08, 06 - 10:51 am Comment from: JimJoeBob

Does this mean I can get tickets to Disneyworld as a perc for buying a new MacBook Pro?

Or will there be a "It's a Mac World Afterall" ride?

May 08, 06 - 10:54 pm Comment from: x

MAN #1: I think it was 'Blessed are the cheesemakers.'

JESUS: ...right prevail.

MRS. GREGORY: Ahh, what's so special about the cheesemakers?

GREGORY: Well, obviously, this is not meant to be taken literally. It refers to any manufacturers of dairy products.

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