“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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a tragedy. Disney’s corporate machinery will destroy the Pixar spirit…unless Steve turns things inside out.
The mind reels….
The POWER with a capital D!
Pixar is ALL about the story. If the STORY people stay on and are allowed to CREATE, then Pixar will prosper…
Jobs will NOT let the BEAN COUNTERS screw Pixar up the way they have Disney….
He will NOT!!! Know why? ‘Cause HE’S THE MAN!!!
That’s why.
This will mean nothing more to Apple than what is already in progress between Apple and Disney.
You guys are all hypervenilating over nothing.
Everyone here seems to think Disney bought Apple. Are you guys all bonkers? Disney bought Pixar, Pixar has nothing to do with the company Apple.
Steve J was CEO of Pixar and did you ever see any Pixar characters using Apple computers, any Apple logos in Pixar movies? I don´t remember Buzz Lightyear using an Apple computer in Toy Story.
The CEO of Intuit is on the board of directors of Apple – do you see free Intuit software in all Apples? Intuit´s QuickBooks Pro (and other software) doesn´t even work on a Macintosh – and this guy is one the Apple Board!
If Disney wanted Apple stores in their parks they would have already put them there.
You all think that Disney will get a super low price on products from Apple and want to sell them? These are two separate profit-making, shareholder owned businesses.
Will Disney not allow Apple to sell any other movies or TV shows via iTunes other than those owned by Disney?
Other than a personal career move and getting some Disney stock this will have zero effect on Apple. The only effect could be negative – Steve spending less time with Apple, Steve losing interest in Apple.
This could of course all go belly up. BUT if it doesn’t, then I believe this augers well for the new attitude at Disney. Thw way they were going was not sustainable. Like other companies of their type they need to transform to the digital age and are generally ill equiped and confused about how precisely to do that.
More than their competitors indeed Disney needs to adapt, or the basis of their whole kingdom, certainly the part that distinguishes them (the magic kingdom) will decline and perhaps even collapse eventually – they have just so much baggage and expectation to deal with, rooted in tradition.
So what we see here is the bringing into the fold of the one asset (Pixar) that was successfully transporting them into this new age and transforming their image. They also need the sort of people and new blood, with new ideas, that will enable the transportation of their dated percieved image and overall product into the future while not losing what they are known for in the process and that is steeped in history. That is a horrendously difficult process to pull off. I suspect that they know they need experts on that digital future and specifically how it will affect the content producer, people who know specifically how to exploit, adapt and give new life to apparently fading assets and introduce new focused products and business ideas. They probably know (at last) that a risk is better than a slow decline. Who better than Steve Jobs and John Lasseter to instil all of the above into this company? For both sides its probably now or never, never land.
A risk true, one that may back fire on all concerned, but if it comes off the possibilities are almost endless and one that can re-instil the magic into the Disney kingdom. Technology and content combined are the future, a company like Disney has to absorb and understand that and this move suggest at least, that its new management do somewhat. For Steve this is his last big hurrah the start at least, of the culmination of all that he wants to achieve for himself and the industry and leave his mark on history. He is after all first and foremost a showman what other company so represents his outer ego than Disney? This is a big risk for him in particular but one I suspect he simply can’t resist. For Apple this is an opportunity and I believe that Steve is perhaps laying the ground work to leaving a thriving company when he finally retires too, assuming that ego isn’t everything here.
This is an exciting moment, there may be more chance of failure in the long run, simply becuse of the size of the company and the size of the task to make it all come together, and because of Steve Jobs prickly nature and untried corporate style, but should it all succeed as, no doubt, SJ invisages, well just maybe the impossible dreams will come true for all involved.
Without the SJ + Apple + Pixar + worshippers : Pixar is a slightly better production company than the others in the computer graphics field because they have an ability to consistently create hit films. In this scenario the sale of a 1986 $10 million company for $7b 2006 makes all the sense in the world. Most of the Pixar films worked within the confines of the Disney world.
With the reality distortion factor: This will make Apple stock triple overnight and all the machines will be faster and I can download movies to my ipod wirelessly before they are even made.
In reality: Apple has the leverage and deals in place for existing content and we may see some more Pixar products going into the itunes marketplace. As Pixar is not a distribution company and Disney is basically a large holding company there is no ‘wow’ chemistry without an iconic partner. This can help Apple a bit, but only so much.
It’s 10% of the Apple cap and SJ gets 7% of Disney. Not bad for 20 years work.
If you have Jobs and Iger together there’s a high chance that Disney can back off it’s 1920’s value system and get jiggy w/ the worlds favorite adopted half-arab-often-thought-to-be-jewish-turtleneck-wearin-CEO.
This may not change the course of Apple, but Disney wins out on this one. Still nothing compared to the Thornton trade.
I am half in agreement with Reggy, this does look good for the ITVS, but there are other factors at play here. For one, the vast majority of entertainment content is still in the form of tape/film. To reach the holy grail of ‘everything downloads’ you must first locate your content, put it through an encoder, store it on a SAN, QA it and catalogue it. Unbelievably, many content makers are only a little way along this path and the same most likely applies to Disney et al.
And don’t worry, all ITMS competitors are in the same boat visavis content.
So I think Disney content will appear slowly on ITVS, but maybe it’s more about putting your competitors on a back foot.
Another thing, there are so many current distribution models for the content and ITMS/ITVS is just another model. It works but there are plenty of other major players already playing the field. ITVS is not about to usurp the set top box, it’ just too entrenched.
One thing maybe though, now SJ’s Reality has started to fill up his RDF!
The stage is in transition and who ends up as the major players is anybodys guess.
scuse me if my coments are a bit jumbled, just woke up…..
“could rewrite the rules of how entertainment is distributed digitally via new consumer technologies.”
I think a few on the boards here have picked up on the key theme. We’re talking (as mentioned) the whole gamut of Disney’s holdings. As the iPod and ITMS is shaking-up the music (distribution) world, Jobs and Co. (with Dizz-knee’s entertainment assets) will re-write the rules of the road for visual entertainment. And don’t think for a minute that Jobs will allow John Lasseter’s free-reign @ Pixar altered in any way. The relationship should be complimentary to both parties (Din-n-Pix) and Apple in their wake.
Could be an interesting day for AAPL stock.
vvvvvvvvvrrrrrrrrrrrm……vvvvvvvvrrrrrrrrrrrrrrrrrrrrrrrrmmmmm.
Noooooooooooooooo!
“Comment: From: Sum Jung Gai Jan 24, 06 – 12:40 am
You read it here first: Microsoft will buy Disney/Pixar/Apple in 2008.”
You read it here and now: Poppycock! Even if Apple had gone Chapter 7 in 1994 it would not have become part of Microsoft.
An absolute funny picture of Steve Jobs!
Had to share!
http://www.msnbc.msn.com/id/10966807/site/newsweek/
talking about shares……
whats best to buy? Pixar or Disney shares? they both surged on the rumors last week……
It has been a long time since Disney has had visionaries running the show. Jobs and Lassiter are definitely visionaries that rival Disney himself. Great move for Disney.
At least now Disney won’t be releasing sub quality sequels of past pixar films.
Also, disney has the FULL Miramax archives of great films and ALL of the distirbuted BUENA VIsta catalogue (which is huge, as BV always lands in the top 3 slot in terms of film distribution).
Jonathan Ives: What are going to do tonight, Steve?
Steve Jobs: The same thing we do every night, Jon: Try to take over the world!
I hope that this new job for Jobs doesn’t mean he won’t have enough time left to attend to Apple Computer… After all, it was he (in my opinion) that turned Apple around.
– Mark
It will be interesting. The Other Steve and Matt are obviously thinking the same thing that first crossed my mind. Jobs once convinced Apple to give he and NEXT a lot of money so NEXT could take over Apple. Will history repeat?
Queezzie: “The CEO of Intuit is on the board of directors of Apple – do you see free Intuit software in all Apples? Intuit´s QuickBooks Pro (and other software) doesn´t even work on a Macintosh – and this guy is one the Apple Board!”
That’s TWICE I’ve heard that same comment on this board. Where the hell do you people shop for your Mac software? Walmart?!?!
Here’s Quickbooks Pro for Mac 2006:
http://quickbooks.intuit.com/commerce/catalog/product.jhtml?lid=left_nav&prodId=prod0000000000007994360
Don’t just spout out bullshit just because it makes you sound smart. At LEAST try to do a quick Google search of your argument BEFORE you post it.
Oh-oh, wonder what happened to the mac mini entertainment box? Disneyed?
MW: Synergy
Stevie did it again, Apple will be all over Disney TV. I LOVE IT!! Mac is coming for you M$
If Pixar agrees, Lasseter is one expensive ho…
Nobody understands the importance of Lasseter to Pixar better than Jobs does. If Jobs weren’t on the Disney board, then I’d be concerned for Pixar, but with him on there, he will be in a position where he can argue for Lasseter to be left to do what he does best and to have the resources to do it. You can also be sure that Lasseter will have private means of communication with Jobs, so Lasseter gets influence right at the top of Disney.
Apple is going to need content for video products and services. There are two types of content that sell very well and are viewed over and over. One is porn and the other is children’s films. Disney doesn’t sell porn, but their name is synonymous with films for children.
Steve will be in a powerful position to influence Disney’s board with his vision of how things will be in the future. His Reality Distortion Field will be a great asset and he will be able to persuade them to agree to a much more imaginative way forward than they otherwise might have agreed to.
Once you get an on-line distribution agreement for Disney and their subsidiaries, other media companies wouldn’t want to be left behind.