Report: Disney buys Pixar for approx. $7 billion, Steve Jobs to become Disney’s largest shareholder

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

“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,” Grover reports. “Additional specifics about the deal aren’t yet clear. And it still must 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.”

“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,” Grover reports.

Full article here.

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Related articles:
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50 Comments

  1. First, it’s gonna be interesting to watch this. Can imagine Jobs having a lot of idea’s to materialize this deal to the benefit of Apple.
    Content distribution is the cashcow to chase after, and having the right tools to deliver, view and manage this content is the key that Apple has been working on very hard and managed to get right so far.
    Everyone in both industries should fear this deal.

  2. so it finally happens … wow, another remarkable day for Steve & maybe  hope if true this will further put Mac in the high light / center of entertainment at home and industry. One more significant event to mark down guys…

  3. this can’t be real, I’ll keep my fingers crossed in hoping that pixar’s board doesn’t allow this! how can jobs be so stupid? why would he want to be part of someone esle’s company, when his whole life he has been controlling his own decisions and making his own companies. now he wants to join a bunch of chimps in the jungle gym? makes no sense to me, maybe it will be clearer for me much later @ least I hope so.

    mw-keep. As in keep Disney monkey hands off pixar jobs!!!

  4. Maybe he can get Disney to be the 1st Fortune 500 to take the plunge and adopt Macs on a wide-scale basis in corporate America. Someone has to be 1st and why not Disney?
    It’s a huge company with ESPN Nets, ABC Family, Disney Channel, ABC Television, partial ownership in Lifetime Nets, partial ownership of A & E Nets, Disney/Miramax/Beuna Vista Studios, Theme Parks, Disney Stores, ABC Radio & Disney Radio Networks, ABC News Productions and a chain of Broadcast TV and Radio stations.
    If Apple could roll out OS X on the secretaries, sales staff, accountants and others at Disney, maybe OS X can get out of it’s (highly profitable) ghetto of the creative parts of Hollywood. It would be a tough sell to the conservative types (financial) in Hollywood, but Steve’s RDF could bring it to pass.
    I just hope the creative garden that has blossomed at Pixar doesn’t get trampled in the shuffle of Corporate Disney.

    Cross your fingers, things are turning.

  5. Remember folks, Disney owns ABC, and ESPN (among others). We’re not just talking Mickey Mouse and Goofy here. This is actually a good move for Jobs and Pixar. Disney owns a boatload of content that isn’t crap, and Apple is looking at content for the video portionof iTMS. Disney basically owns Times Square in NYC as well- they are the ones responsible for cleaning it up from the shit hole that it once was. Millions filter through that part of the city daily- having an inside into that provides avenues for lots of easy exposure. I sure there is alot more here than appears on the surface…

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