“Shares of Pixar Animation Studios Inc. rose while those of Walt Disney Co. fell on Friday after the two failed to renew a lucrative film deal that yielded blockbuster hits for both companies,” Reuters reports. “Pixar shares rose 4 percent on the belief that it had the upper hand, as a list of suitors would likely line up to strike a deal. Disney shares fell 2 percent on concerns operating income at its filmed entertainment division could fall by 50 percent.”
Reuters reports, “Talks between Pixar, which is run by Apple Computer Inc. co-founder Steve Jobs, and Disney broke down on Thursday after 10 months of negotiations. ‘We believe that Pixar has the upper hand relative to Disney, and it would be an attractive studio partner for all of Hollywood’s major, global distributors,” said Paul Kim, an analyst at Tradition Asiel. Kim said in a note Time Warner Inc.’s Warner Bros. was a potential front-runner among partners. Kim said the split with Pixar could shave as much as 7 cents per share off Disney’s estimated 2004 earnings.”
Full article here.
Oh Joy!
Good for them…Obviously Pixar had the upper hand. I didn’t really see what Disney brought to the fold.
Disney brought the advertising, marketing and distribution vehichle to the agreement. Just remember, Disney is still a big name although I’m sure we’re going to start to see an exodus there soon. They’ve dropped alot of their traditional animators and now that they lost Pixar they’re pretty much screwed. We’ll be hearing about Eisner being ousted in a few weeks for sure.
Pixars in a really, REALLY good spot right now. I just hope they make a good decision when it comes to who their new partner will be.
I wouldn’t worry about bad deals. Pixar’s CEO is our beloved Steve. Say what you will, the man has a sense of timing and a taste for good deals that’s hard to beat. I mean, if he can talk Record execs into selling online music, getting a distribution deal for an attractive animation studio should be phone-in worthy.
I think, now don’t shoot me, that Disney + Pixar is a fantastic match. They just go hand in hand together.
I don’t know Steve at all, nor do I know much about what kind of dealmaker he is, but I can definitely see this happening:
1. Steve breaks off talks (already happened)
2. Eisner gets ousted really quickly (probably as quick as the CEO of NYSE)
3. New interim CEO
4. First thing: Give Pixar whatever they want and make new deal
5. Pixar shares go up, Apple shares go up as well
6. Everyone throws PCs out the window
7. Apple stores get flooded with switchers
8. M$ files bankruptcy
9. US sends Gates/Ballmer to the moon on a one way trip
“but I had hand�”