“At least one Wall Street research firm has suggested that an acquisition of Pixar by Disney makes sense. But according to the two people with knowledge of the talks, who asked not to be identified because of the sensitive nature of those negotiations, Mr. Iger has not made an offer to buy Pixar. They added, though, that Mr. Jobs would consider a sale at the right price. Pixar’s market value is about $5.9 billion, a price that would make an acquisition – by Disney or another media company – expensive, given the price per share that most media stocks are trading at these days,” Laura M. Holson reports for The New York Times.
“On Friday, the Walt Disney Company will release ‘Chicken Little,’ its first animated film since revamping its animation studio. The company is hoping the movie will return Disney to the glory of its past in animation,” Holson reports. “Another company that also has a lot riding on “Chicken Little” is Pixar, the Emeryville, Calif., studio that has a joint venture with Disney to make and market animated films through 2006. Steven P. Jobs, Pixar’s chairman, and Robert A. Iger, Disney’s newly named chief executive, have been in talks since early summer to extend an agreement for Disney to continue distributing Pixar films. But according to two people with knowledge of the talks, serious negotiations have not begun, as both sides wait to see how ‘Chicken Little’ performs in movie theaters.”
Full article (free registration required) here.
