Disney completes Pixar acquisition; Steve Jobs now Disney’s single largest shareholder

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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42 Comments

  1. 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 ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  2. 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

  3. 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…).

  4. 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.

  5. 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! ” width=”19″ height=”19″ alt=”rolleyes” style=”border:0;” />

  6. 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.

  7. 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.

  8. 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.

  9. 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.

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