Disney Buys Pixar for $7.4 Billion

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Disney issued a press release (http://corporate.disney.go.com/news/corporate/2006/2006_0124_pixar.html) today announcing that they were acquiring Pixar in an all-stock transaction valued at $7.4 billion. According to the press release:

Pixar President Ed Catmull will serve as President of the new Pixar and Disney animation studios, reporting to Iger and Dick Cook, Chairman of The Walt Disney Studios. Pixar Executive Vice President John Lasseter 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.

Meanwhile, Pixar Chairman and CEO Steve Jobs will be appointed to Disney's Board of Directors.

Steve Jobs is the present CEO of Apple Computer and there has been speculation about what consequences his new ties to Disney may have. Indeed, bringing Apple and Disney closer together with Jobs' involvement may cause some friction in future potential deals between Apple and other studios.

[icrew]

Bob Iger, watch your back!

You know what happened the last time Steve was appointed to a board....

[JesseJames]

I guess this rings the death knell for traditional cell animation. Especially being from the Disney name.

[swingerofbirch]

i wonder if steve jobs can save disney?

he's got a lot of spark but he is getting older!

should make it easy to get more content for itunes; not that abc has anything to offer at the moment

[yankeefan24]

so how many shares does steve have. We will see feature length content on itvs next tuesday. That will be steve's first action on the board.

[iGary]

Steve just took his first step toward retirement. :(

[w00master]

Will Jobs be active among the Disney Board of Directors? Will this bring even more media over to the iTunes Store (probably)? How will the rest of the media industry react?

The coming years are going to be VERY interesting for Disney, Pixar (now Disney), and Apple.

w00amster

[richdun]

Bob Iger, watch your back!

You know what happened the last time Steve was appointed to a board....

Oh, and one more thing...

Introducting MacWorld Orlando. And MacWorld Anaheim, MacWorld Paris, MacWorld Hong Kong, and MacWorld Tokyo.

The whole world in our pocket.

[yankeefan24]

Oh, and one more thing...

Introducting MacWorld Orlando. And MacWorld Anaheim, MacWorld Paris, MacWorld Hong Kong, and MacWorld Tokyo.

The whole world in our pocket.

turn disney world into a giant apple store, seems like a good idea.

Soon, steve will become CEO and majority shareholder, and have apple buy disney for a very small amount of money.

To be serious, this could be a good move for jobs and apple.

[jacobj]

If Steve Jobs isn't head of Disney before the year is out I will switch to Windows.

If he is head by the end of the year I may have to switch to Windows in 5 years!

[skidooairman]

Ah ****, I hope we dont get "Herbie and Benji" on iTunes.

[CompUser]

Are they keeping the "pixar" name?

I wish it was like the old days, a new disney channel original movie every month.

Johnny Tsunami
Rip Girls
Wish Upon a Star
Jet Jackson the Movie
Zenon girl of the 21st century
Zenon the Zeaqual
Zenon Z3
Smart House
Stepsister from planet wierd

and sooo many more...

[Bob Knob]

Disney's creative juices have long since dried up, virtually all of the latest Disney creations have been flops... including their latest theme park attractions and parades. The big gain for Disney is going to come from John Lasseter's appointment to not only the Chief Creative Officer of the animation studios, but more importantly the Principal Creative Advisor at Walt Disney Imagineering!

[theahnman]

Well, looks like the prospects of Disney-licensed iPods are most likely on the horizon...
Time to brainstorm clever names for new Disney/Apple cross-branded products...
Any takers?

[mcarnes]

Adobe buys Macro

Disney buys Pixar

Hell, what's next?

[Nastard]

Now would be a good time to pick up some AAPL. You know, before the major content announcements in a few months.

iTunes has 14% of internet traffic. Imagine what adding the entire Disney/Miramax/ABC/Lifetime/ESPN/E!/et al catalogue would do for traffic. And what those sales would do for the sales of iPods. And what those sales would do for the promotion of Apple computers, not to mention Apple's stock price.

[derajfast]

Are they keeping the "pixar" name?

I wish it was like the old days, a new disney channel original movie every month.

Johnny Tsunami
Rip Girls
Wish Upon a Star
Jet Jackson the Movie
Zenon girl of the 21st century
Zenon the Zeaqual
Zenon Z3
Smart House
Stepsister from planet wierd

and sooo many more...

pixar will keep its name.....steve jobs said disney and pixar names have a lot of equity and itd be stupid to axe the name


now john lasseter gets some recognition for his genius

[Doctor Q]

Congrats, Steve.

Assuming that Disney-owned content in iTunes continues to grow, we'll have to see if other media holders are more inclined to distribute through iTunes because they need to compete with the growing Disney catalog there, or whether they will assume Disney is getting special deals and look to the competing distribution channels to avoid a negotiating disadvantage. Will Disney rivals think that support for iTunes = support for Steve Jobs = support for Disney?

[p0intblank]

I'm not too keen on business talk... so what does all this mean for Steve Jobs? Is he no longer the CEO of Pixar or what?

[Rustus Maximus]

I guess this rings the death knell for traditional cell animation. Especially being from the Disney name.

Not necessarily. I believe I've read somewhere that Pixar was, at one time, planning a 2-D studio.

http://www.aintitcool.com/display.cgi?id=16604

[Bob Knob]

CNN (Headline News) is announcing that an interview with Jobs is coming up in the next hour.

[PlaceofDis]

be interesting to see how all of this ends up panning out. interesting times ahead for sure.

[theahnman]

Got in on AAPL last February...
My portfolio is happy.

[~Shard~]

Got in on AAPL last February...
My portfolio is happy.

Shorted AAPL last Tuesday - my portfolio is happy as well. :p ;)

[runplaysleeprun]

Maybe this will finaly be the end to those terrible Mickey Mouse PCs. You know, the ones where the monitors have big Red ears sticking out?

[iris_failsafe]

I guess this means Stevo would become the king of the entertainment world.

BTW we all know that Apple is gonna rock with this.

[nataku]

Wow. Does Steve even sleep?

I can already see a kiddie laptop called the MickeyBook ;)

[theahnman]

I can already see a kiddie laptop called the MickeyBook ;)

Yeah! That's what I'm talking about! Any other takers for the First-Ever Clever Apple/Disney Cross-Branded Product Naming Contest? (Not sanctioned by MR) Haha

[steve_hill4]

Never been a big fan of Disney for various reasons, but I'm very happy for Steve Jobs of course. I just hope this doesn't effect Pixar and/or Apple too much. If Steve does try to take over as CEo of Disney at some point, will he have enough time to continue to oversee Apple?

Either way, I love your new avatar iGary.

[mvc]

Yeah! That's what I'm talking about! Any other takers for the First-Ever Clever Apple/Disney Cross-Branded Product Naming Contest? (Not sanctioned by MR) Haha

Apple's New Mickey Mouse™


Replaces the Mighty Mouse...

Comes with two big round black buttons....
:p

[Metatron]

I was worried about what will become of Pixar if all the talant left, but I think we can be safe in saying all is well.

Wasn't there going to be a Toy Story 3, and it was outsourced to another 3D studio? That could be internesting?

[theahnman]

Apple's New Mickey Mouse™


Replaces the Mighty Mouse...

Comes with two big round black buttons....
:p
Andy Kaufman might not be too pleased about that... :p

[p0intblank]

Wow. Does Steve even sleep?

You have to wonder what his average day is like... :o

[splashman]

I guess this rings the death knell for traditional cell animation. Especially being from the Disney name.

You've obviously never heard Lasseter speak about cell animation. I can confidently predict that within a few years, you'll see butt-kickin' cell films out of Disney. And in contrast to the Disney films of the past 20 years, they'll actually have a compelling narrative.

[TheMasin9]

Soon, steve will become CEO and majority shareholder, and have apple buy disney for a very small amount of money.

To be serious, this could be a good move for jobs and apple.
you beat me to the punch, this is going to happen, steve commands such high expectations from all those around him, disney is currently not up to snuff, hes going to take over the company in a few months.

[mvc]

Apple's New Mickey Mouse™


And of course the MickBook™

[zv470]

Disney is the Devil.

[mvc]

Disney is the Devil.

C'mon, lighten up, next you'll be comparing them to McDonald's

It's not like they are serving up unhealthy addictive rubbish to kids...


Umm, Hang on....

[zv470]

And of course the MickBook™
MickCheesePod with mayo.

[skunkworks]

I think disney is nuts ! ! ! They could have built their own studios for that kind of dough. Their latest did over 200 milliion....Did jobs ever pull one over on disney! ! !

[iris_failsafe]

I guess this is why the didn't eleased ibook at macworld...

Their new name is the MacMickey and it features the Apple with 2 ears.:D

[gauchogolfer]

Disney is the Devil.

Disney is just a company which has made some recently crappy movies. Calling them satanic is a bit overblown.

[splashman]

Jobs has no interest in running Disney. He'd have no time to innovate -- he'd be in meetings 27 hours a day regarding merchandising deals for Mickey 'n Minnie toaster ovens.

In addition to his board position, he may go after a position that would allow him to push Disney's media distribution into the 21st century. But his heart is at Apple, and will remain at Apple.

I don't see this deal as affecting his commitment to Apple. Instead of spending a few hours a week at Pixar, he'll be spending a few hours a week at Disney. That's all.

[mvc]

Actually, a further merger with McDonalds might be the order of the day

Then they could introduce the McMickMac™ :p

[Bob Knob]

I think disney is nuts ! ! ! They could have built their own studios for that kind of dough. Their latest did over 200 milliion....Did jobs ever pull one over on disney! ! !

You can build a studio... but you can't build talent. This was all about the talent Disney was so sorely lacking.

[Krizoitz]

Look, the problems at Disney haven't been a lack of talent, they have been a lack of vision and leadership. Walt was a visionary first, buisnessman second. Eisner et al were business men first, visionaries never.

Now they have a new head at Disney, and an infusion of creative talent, not to mention Steve's creative genius on the board. There is no way that this can be a bad thing. Its great for Disney, we will see them becoming like the Disney of old. I'd bet that Roy Disney and Steve Jobs will get along great, wouldn't be surprised to see him back on the board. And Pixar will be able to leverage the resources of Disney to do great things. Win-win all the way around.

[skunkworks]

Its obvious that without video content itunes could not work in the future and it took this kind of move for apple to survive the onslaught of other forthcoming players. Buy apple shares they're going to be worth a fortune ! !

Bobnob: You can buy a hobnob of talent for 7.4 billion, please tell me that there are other talented people besides pixar?

[splashman]

I think disney is nuts ! ! ! They could have built their own studios for that kind of dough. Their latest did over 200 milliion....Did jobs ever pull one over on disney! ! !

Um . . . geez.

If the only requirement for a successful studio was $$ and facilities, Disney wouldn't have been sitting in their own creative vomit for the past 20 years. What Disney just bought was the most talented filmmakers in the business. This deal is better for Disney than for Pixar, and the stock prices reflect that.

[Doctor Q]

In addition to his board position, he may go after a position that would allow him to push Disney's media distribution into the 21st century. But his heart is at Apple, and will remain at Apple.Random movie-related suggestions for Steve to bring to Disney's other execs:

Disney movies go to theaters only in digital form.

For Oscar consideration, Disney movies are available free to Academy members in online streaming form, not distributed on DVDs. That's certainly a lot easier for Academy members who can't figure out how to hook up the special DVD players they were given last year.

[mvc]

... You can buy a hobnob of talent for 7.4 billion, please tell me that there are other talented people besides pixar?

Wonder how much Dreamworks would have cost?

Thing is, they could have bought talent and tried to build Disney up again from scratch that way, but Pixar has momentum, whereas Disney just has inertia.

[splashman]

Please tell me that there are other talented people besides pixar?

The floor is open for nominations.

Um . . .

Uh . . .

[theahnman]

Wonder how much Dreamworks would have cost?

I wonder how realistic the prospect of a Dreamworks acquisition actually is...
Imagine, the possibilities of Dreamworks-related content being available as well.
Is my ignorance regarding Dreamworks showing through at all?
Well, if it is, it's purely intentional of course... to throw you all off...:D

[splashman]

Wonder how much Dreamworks would have cost?

When Dreamworks produces a movie that consists of something more than a random collection of parodies and homages, I'll consider mentioning them in the same breath as (deep breath) Pixar.

Dreamworks makes lots of money, and that's about all. Pixar makes awesome films, and lots of money besides.

[gwangung]

When Dreamworks produces a movie that consists of something more than a random collection of parodies and homages, I'll consider mentioning them in the same breath as (deep breath) Pixar.

Dreamworks makes lots of money, and that's about all. Pixar makes awesome films, and lots of money besides.

Which means it has talent AND the system to harness that talent to make good and profitable movies.

[nagromme]

"Disney to Buy Pixar?" - Mostly negative story ratings.

"Disney Buys Pixar!" - Mostly positive :p

I don't like media consolidation (or Disney), but looked at purely as Apple news I don't see how this is likely to be anything but positive.

[huck500]

Lasseter in charge of theme parks is HUGE...that's an area sorely lacking in the last few years. I also predict some "cell" (not that they actually draw cells anymore...) animation coming out of Disney now. Saying this is the death knell of hand-drawn animation kind of ignores that Disney isn't doing it anymore anyway...start looking for Macs on Disney tv shows.

[tk421]

I guess this rings the death knell for traditional cell animation. Especially being from the Disney name.

Not necessarily. I believe I've read somewhere that Pixar was, at one time, planning a 2-D studio.

I hope there is a revival of 2D animation. Lasseter speaks very fondly of Miyazaki's work. For those of you that aren't familiar with him, he is a director of Japanese animated films. His films are fabulous, and Lasseter has introduced some of them on the English DVDs (which, incidentally, are released by Disney).

[splashman]

Lasseter in charge of theme parks is HUGE...that's an area sorely lacking in the last few years.

Um, no offense, but are you nuts? Lasseter is a filmmaker.

According to this (http://www.mercurynews.com/mld/mercurynews/13701921.htm), Lasseter will be Chief Creative Officer of Disney animation studios.

[Don't panic]

Um, no offense, but are you nuts? Lasseter is a filmmaker.

According to this (http://www.mercurynews.com/mld/mercurynews/13701921.htm), Lasseter will be Chief Creative Officer of Disney animation studios.

or, you might just read your own reference ;)
Pixar President Ed Catmull will become president of the new Pixar and Disney animation studios. Pixar Executive Vice President John Lasseter will be Chief Creative Officer of the animation studios, as well as Principal Creative Advisor at Walt Disney Imagineering, where he will help design new attractions for Disney theme parks

[Bob Knob]

Its obvious that without video content itunes could not work in the future and it took this kind of move for apple to survive the onslaught of other forthcoming players. Buy apple shares they're going to be worth a fortune ! !

Bobnob: You can buy a hobnob of talent for 7.4 billion, please tell me that there are other talented people besides pixar?

It's the combination at Pixar that makes it work... look at all the Hockey teams with huge talent rosters on the payroll, if they can't make a cohesive team then it is wasted money. Disney lacks the creative vision they once had.

[steve_hill4]

"Disney to Buy Pixar?" - Mostly negative story ratings.

"Disney Buys Pixar!" - Mostly positive :p
I noticed that too. While I would not have liked this to go ahead, now that it has, I feel indifferent towards it. Sure it might benefit Apple in some strange twist of fate, but for the actual news itself, I couldn't care two hoots. I hated Disney, disliked Pixar for being so close to them, admired them for threatening to leave Disney, now feel I'm back to where I began, only now Apple are dragged potentially further in and it may benefit them. I souldn't really care, and I barely do.

[Yvan256]

Adobe buys Macro

Disney buys Pixar

Hell, what's next?

Microsoft Purchases Evil From Satan (http://www.bbspot.com/News/2000/4/MS_Buys_Evil.html)?

[splashman]

or, you might just read your own reference ;)

My apologies. (Inserts foot in mouth.)

However, "in charge of theme parks" is a far cry from "creative advisor" or "designing new attractions."

[Thanatoast]

Didn't Disney shut down their 2D animation studios? That was a sad day.

I hope Pixar doesn't get burnt out trying to haul Disney into the future.

As for content on iTunes, the more the better. Even if it is Disney. :)

[w_parietti22]

Adobe buys Macro

Disney buys Pixar

Hell, what's next?

Apple buys MS? :eek:

[Bob Knob]

Um, no offense, but are you nuts? Lasseter is a filmmaker.

According to this (http://www.mercurynews.com/mld/mercurynews/13701921.htm), Lasseter will be Chief Creative Officer of Disney animation studios.

And what was Walt before he built DisneyLand?
And what were all the original Imagineers before they started planning Disneyland?

Filmmakers.

[dontmatter]

Issues:

will this hurt apple's ability to get media from the other media companies? If the connection of steve is used to get an advantage with disney, it will earn apple a disadvantage with everybody else.

Apple looks like the nice CEO of apple who takes a dollar a year in salary. Now, though, he's the CEO of the loved and successful animation studio that sold out to the ancient rotting beast, so he could get a windfall to rival corporate windfalls.

[splashman]

And what was Walt before he built DisneyLand?
And what were all the original Imagineers before they started planning Disneyland?

Filmmakers.

Yep, you're right. My apologies.

[JGowan]

he's got a lot of spark but he is getting older!Man... how old are you? Steve's just 50 (b. Feb 24, 1955).

My father is 72 and is still hard at work for Union Pacific Railroad since Feb 15, 1955; starting a day before Steve was even born. Age is relative. It depends on the man.

Believe it: Steve Jobs is just getting started.

[Bob Knob]

My apologies. (Inserts foot in mouth.)

However, "in charge of theme parks" is a far cry from "creative advisor" or "designing new attractions."

Must be a short cry... at Disney all of those come under the same title group.

[kainjow]

Anybody see the story about this on ABC News tonight? They had Steve Jobs and Rober Iger on for a few blurbs from an interview.

[steve_hill4]

Microsoft Purchases Evil From Satan (http://www.bbspot.com/News/2000/4/MS_Buys_Evil.html)?
What would be the point in that? That would be like Apple purchasing BeOS as it stands now. What do they need it for when they already have much more than the deal would give them.

Man... how old are you? Steve's just 50 (b. Feb 24, 1955).

My father is 72 and is still hard at work for Union Pacific Railroad since Feb 15, 1955; starting a day before Steve was even born. Age is relative. It depends on the man.

Believe it: Steve Jobs is just getting started.
And don't be surprised if Steve doesn't get regenerated as a robot shortly after dying anyway. No sleep needed, meaning keynotes 24 hours a day.;)

[Kirkmedia]

Steve Jobs has lined his pockets at the expense of Apple's future. I'm sure this
won't help with Apple's relationships with other media companies.

I hope I am wrong.

[Bob Knob]

Yep, you're right. My apologies.

No need.

I realize I might be a little aggressive with my replies right now. One of my companies created software that both Disney and Pixar rely on (others use it, but Disney and Pixar combined total about 70% of our users). We have been positioning ourselves for a buy out in the last few months, this deal is going to be -very- good for my retirement account.

[Kirkmedia]

Steve Jobs will leave Apple to run disney full-time after the intel transition. I know a lot of you think I'm idiot, but this could happen.

[splashman]

Must be a short cry... at Disney all of those come under the same title group.

Okay, be nice. You're not arguing my point, are you? An org chart is one thing; day-to-day responsibilities are quite another. "In charge of theme parks" sounds to me like an administrative position, and one that Lasseter would never accept, IMHO. Wouldn't you agree?

[AtHomeBoy_2000]

Microsoft Purchases Evil From Satan (http://www.bbspot.com/News/2000/4/MS_Buys_Evil.html)?
I was just watching CNBC and they were talking about the Pixar/Disney deal. THe three people on the show basically agreed that Jobs is now more culturally relivant that Bill Gates and that this deal makes Gates look like someone who is just wondering around with no idea of what's going on. It's a great commentary and it think they are right.

[AtHomeBoy_2000]

I'm sure this won't help with Apple's relationships with other media companies.

Other companies are already going other routes. MTV and VH1 allined themselves with microsoft and CBS is looking into its own distribution model.

[splashman]

Steve Jobs has lined his pockets at the expense of Apple's future. I'm sure this
won't help with Apple's relationships with other media companies.

I hope I am wrong.

I hope so, too. But it seems to me that Jobs lining his pockets is beside the point. He could have sold to Disney without accepting a board position, don't you think?

And it also seems to me that considering that Apple is the apple of Jobs' eye, and where his passion lies, Occam's Razor says he wouldn't jeopardize his baby for $$, even if it is a few billion $$. I doubt $$ is in his top 10 priorities, and I'm sure he's got the long view in mind re: Apple.

Here's one possibility: If he can maintain the media platform dominance (iPod + iTMS) and extend it with other devices, eventually all the content providers will have little choice but to deal with him. A risky strategy, to be sure, but it sounds good to me. When another company comes up with an integrated solution (hardware+software+service) that's even half as good as Apple's, I'll start to worry.

[Kirkmedia]

I hope so, too. But it seems to me that Jobs lining his pockets is beside the point. He could have sold to Disney without accepting a board position, don't you think?

And it also seems to me that considering that Apple is the apple of Jobs' eye, and where his passion lies, Occam's Razor says he wouldn't jeopardize his baby for $$, even if it is a few billion $$. I doubt $$ is in his top 10 priorities, and I'm sure he's got the long view in mind re: Apple.

Here's one possibility: If he can maintain the media platform dominance (iPod + iTMS) and extend it with other devices, eventually all the content providers will have little choice but to deal with him. A risky strategy, to be sure, but it sounds good to me. When another company comes up with an integrated solution (hardware+software+service) that's even half as good as Apple's, I'll start to worry.



Maybe You're right. If Steve is getting the cold shoulder from other content
providers, maybe this his way of saying "kiss my butt".

[Bob Knob]

Okay, be nice. You're not arguing my point, are you? An org chart is one thing; day-to-day responsibilities are quite another. "In charge of theme parks" sounds to me like an administrative position, and one that Lasseter would never accept, IMHO. Wouldn't you agree?

(please see my reply at #75)

When Disney first got going the filmmakers were the Imagineers, and that is what made the whole thing work. Walt was the head of everything and his background was creative rather than business, but that was long ago... Disney is all corporate decisions now with little creativity and direction.
If you take away Walt's business responsibilities you wind up with the basic titles John was just named to. I have met John on several occasions and I think he is exactly what Disney needs, someone with vision. The part that intrigues me is that John answers directly to Iger, this gives me the impression that Disney is expecting John to really take the ax to a lot of deadwood and bring Disney back to what it once was.

(I'll take a break and let this thread be, I always hate it when someone repeatedly replies to a thread)

[balamw]

Wonder how much Dreamworks would have cost?
DWA's market cap is about $3B. I'm not sure Katzenberg (http://en.wikipedia.org/wiki/Jeffrey_Katzenberg) would have wanted to come back to Disney, even without Eisner around.

MTV and VH1 allined themselves with microsoft and CBS is looking into its own distribution model.
You do realize these are all Viacom properties, right? Not surprising that they are all doing "something else" if that's the corporate strategy.

B

[d_and_n5000]

Maybe this will finaly be the end to those terrible Mickey Mouse PCs. You know, the ones where the monitors have big Red ears sticking out?
Yeah, that's true. Now they'll be Mickey Mouse iMacs. Picture a red iMac with big ears sticking out of the top of it!!!!!!

[joeboy_45101]

I think this is awful!

Jobs has said that he is not really interesed in the board appointment he is receiving. John Lasseter and the other creative geniuses at Pixar are walking into a trap, nobody at Disney ever appreciated the work done by Pixar. Hell, Eisner and the rest of his cronies took joy in the initial rumor that Finding Nemo was going to be a flop. Eisner may be gone, but he has had plenty of time to fill the company with his soulless minions. Pixar wil not change Disney, this is not the same as Apple buying NeXT.

This would be like Microsoft buying Apple. :mad:

[Malfoy]

I'm also not a fan of this. Steve might be the biggest shareholder at Disney, but he doesn't hold near enough shares to hold back disney's management who might want to get a hand in with some of Pixar's work. The quality of their work has already been on the decline(Toy Story 2 was the greatest movie of all time, end of story) and eventually this merger will accelerate that.

[GregA]

will this hurt apple's ability to get media from the other media companies? If the connection of steve is used to get an advantage with disney, it will earn apple a disadvantage with everybody else.This is the biggest worry. Although, to be fair, there is no financial link between Apple and Disney is there? So in reality any deal will need to be on terms beneficial to both parties.

There are 2 effects though
1) Steve Job's reality distortion field may affect many Disney decisions. This could be interesting for their direction and connection to Apple. Perhaps Disney will risk a little more when stepping into future technologies?
2) The media and general feeling that Apple & Disney are connected could be very bad for Apple working with other media companies. Even if Apple actually offers Fox and ABC identical deals.

It's all in the presentation.

[Detlev]

Mr. Jobs is now the largest shareholder of Disney stock according to CNET.

[supergod]

I assume this means that there will be an integration between the technology of the two companies: Disney getting Pixar expertise and Pixar getting a much larger budget? Because then this could be very good for 3D and computer-animated 2D in general. Maybe Pixar can even get some more oscar clout and win the awards that their work has really been deserving of.

[Counterfit]

I hope there is a revival of 2D animation. Lasseter speaks very fondly of Miyazaki's work. For those of you that aren't familiar with him, he is a director of Japanese animated films. His films are fabulous, and Lasseter has introduced some of them on the English DVDs (which, incidentally, are released by Disney).
Any anime fan knows cel animation is FAR from dead. ;)

[AidenShaw]

....this is not the same as Apple buying NeXT.
You mean when NeXT bought Apple, of course?

[Analog Kid]

It isn't uncommon for CEOs to sit as board members on other companies. Mostly their job is to meet once a quarter to make sure the CEO hasn't totally screwed things up. They also provide guidance in certain business areas-- but not complete control.

This isn't a takeover of Apple by Disney or vice versa, any more than Langhammer's appointment meant a takeover by Estée Lauder. Mostly I think they wanted the guy in charge of the animation company they bought to be around to look after things in the animation business.

Apple's Board (http://www.apple.com/pr/bios/bod.html)
Disney's Board (http://corporate.disney.go.com/corporate/board_of_directors.html)

More unusual was to have one man as CEO of two companies.

For Apple, I think this means they have a way of whispering in Disney's ear, but not much more. I think this may bias Disney towards using iTMS as a distribution channel. I don't think we're going to see an orgy of cross licensing.

Remember that there are a lot of other *huge* personalities on that board. Nobody is going to be awestruck that Steve Jobs is sitting next to them.

[Hyernel]

Here at Walt Disney World, Dell is constant presence....I'd say those days are almost over.

EPCOT will become the worlds largest Apple demo area!!

I love this!!

(p.s. Why do my posts tend to disappear?)

[Chundles]

You mean when NeXT bought Apple, of course?

You mean when NeXT "owned" Apple don't you? Apple may have bought NeXT but NeXT "owned" Apple in the deal.

[GodBless]

Wow! This means that Steve Jobs lost all 3 of his companies that he founded. Here are the details:

Lost Apple: Steve was fired with board of directors argument
Lost Next: Next was acquired by Apple
Lost Pixar: Pixar was acquired by Disney (today)

Yes he gained Apple back but imagine if he didn't .;)

I bet Steve Jobs is laughing too. :D

[pknz]

Hopefully this turns into great news for Apple.

[mcarnes]

Anyone have a link to the SJ interview on this? They had a little of it on the news but I want to see the whole thing.

[Mebsat]

Disney has this annoying habit of bringing out old titles for six weeks and then taking them off the market.

Hurry, parents! Buy Cinderella...for a limited time.

Can anyone guess what's coming soon to an iTunes store near you?

Think different, think the whole backlog, with a Mickey Mac-mini to play it on.

Meanwhile Jobs is pre-positioning his troops for the palace coup. Lasseter will control all the film-making. Remember Avie Tevanian led the NeXT troops in till Jobs bumped Amelio.

Apple and Disney might be a little unwieldy as one company, but you can bet there's a whole lot of synergy coming down the pike.

[Mechcozmo]

I'm also not a fan of this. Steve might be the biggest shareholder at Disney, but he doesn't hold near enough shares to hold back disney's management who might want to get a hand in with some of Pixar's work. The quality of their work has already been on the decline(Toy Story 2 was the greatest movie of all time, end of story) and eventually this merger will accelerate that.

I agree that Pixar's latest movies weren't as good as their earlier ones, but they were still some of the greatest movies I've seen in years. That's a good thing.

Wow! This means that Steve Jobs lost all 3 of his companies that he founded. Here are the details:

Lost Apple: Steve was fired with board of directors argument
Lost Next: Next was acquired by Apple
Lost Pixar: Pixar was acquired by Disney (today)

Yes he gained Apple back but imagine if he didn't .;)

I bet Steve Jobs is laughing too. :D

I wouldn't say "lost" because Steve has done remarkably well. Apple and NeXT merged into one, and he emerged on top. Pixar and Disney merge and he is in a seat of power. He has some degree of control. Jobs is not one to let control go easily. I'm not ready to say that Pixar is a lost cause.

[DrNeroCF]

I really really really wish that Steve would slap Disney around and do to them what he did to Apple. I'm a huge fan of animation, Disney is one of the worst disappointments in recent history (though I can't say they're doing terrible as far as live action goes).

[Super Dave]

Shorted AAPL last Tuesday - my portfolio is happy as well. :p ;)

If you're a short term investor. I'm not terribly worried about the last week of stock performance. AAPL always tubes right after a quarterly earnings report and comes back up in a few weeks. I'm in it for the long haul.

David :cool:

[Super Dave]

2) The media and general feeling that Apple & Disney are connected could be very bad for Apple working with other media companies. Even if Apple actually offers Fox and ABC identical deals.

It's all in the presentation.

It can also help other companies to hurry their butts up. I mean from a corporate perspective, Jobs owns approximately squat of Disney, so I don't think it will be perceived as bad as people think.

Personally I think that if Disney floods iTunes with content, other content providers will want in when they see the revenues. It's really not all in the presentation, but all in the potential revenue.

David :cool:

[iMeowbot]

In the CNBC interview about the buyout, Teh Steve only said of potential Disney-Apple joint stuff "It's going be a pretty exciting next five years." Are there any details out there of this 5 year agreement between the companies?

[jobberwacky]

The coming years are going to be VERY interesting for Disney, Pixar (now Disney), and Apple.
Edit:
The coming years are going to be VERY interesting for Disney (now Apple), Pixar (now Disney), and Apple (still NeXT)

[Super Dave]

CNN story with video (http://money.cnn.com/2006/01/24/news/companies/disney_pixar_deal/index.htm?cnn=yes).

Steve Jobs says that he thinks that this is just the beginning for deals between Apple and Disney. :D

David :cool:

[amateurmacfreak]

Now would be a good time to pick up some AAPL. You know, before the major content announcements in a few months.

iTunes has 14% of internet traffic. Imagine what adding the entire Disney/Miramax/ABC/Lifetime/ESPN/E!/et al catalogue would do for traffic. And what those sales would do for the sales of iPods. And what those sales would do for the promotion of Apple computers, not to mention Apple's stock price.
Yeah. It's looking to be a nice time to buy Apple. I don't know if I want it to drop so I can buy it lower or rise just for the heck of being my favorite comany. :o ;) :p

[amateurmacfreak]

Lasseter in charge of theme parks is HUGE...that's an area sorely lacking in the last few years. I also predict some "cell" (not that they actually draw cells anymore...) animation coming out of Disney now. Saying this is the death knell of hand-drawn animation kind of ignores that Disney isn't doing it anymore anyway...start looking for Macs on Disney tv shows.
Start looking for Macs in Disney theme parks and hotels and restaurants and....:eek: Any chance of that happening?? B/c I think the only retail buisness I've seen a Mac being run has been the Apple Store.:o
No, but is that too far of a fetch, starting a Disney change over to Mac? b/c if a large corporation like that (haha, besides Apple) started using Macs.... that'd be pretty nice for Apple, wouldn't it?
Am I buying Apple stock tomorrow.:D

[maya]

Not "Diz-nee," noooooo. ;) :)

Good news for Disney, bad news for Steve. :D

[amateurmacfreak]

Didn't Disney shut down their 2D animation studios? That was a sad day.

I hope Pixar doesn't get burnt out trying to haul Disney into the future.

As for content on iTunes, the more the better. Even if it is Disney. :)
I'm just wanting the History Channel. Realllly wanting . There would finally be some decent content for my iPod.:o ;) :p

[amateurmacfreak]

I was just watching CNBC and they were talking about the Pixar/Disney deal. THe three people on the show basically agreed that Jobs is now more culturally relivant that Bill Gates and that this deal makes Gates look like someone who is just wondering around with no idea of what's going on. It's a great commentary and it think they are right.
I think Bill Gates just needs to step down and tell Steve, "Steve, it's all yours now," and give all his part of MS to Steve and Steve would be CEO and Bill Gates could go off and be happy being a philanthropist! Yay!
I just found my happy medium between loving Bill Gates and wishing he would just go away. :o
HE CAN BE A FULL-TIME PHILANTHROPIST! :eek: ::rolleyes: :p

[MacEffects]

Well, it sure save Disney a LOT of bother. I mean the were obligated to have both Pixar and Disney logos the same size in EVERY ad, print, image, etc... And say a Disney presentation of a Pixar Film... And apparently Disney wanted not to have to do that bad enough to spend $7.4 Billion :cool: Well, I know Steve has it in his mind already to do something that will make Disney look like they made the mistake, lets look at this carefully. Steve is one of those people he will only allow something *IF* its in his/companies best interest and will be in a big way... I think we need to wait this out and be amazed. But, don't get me wrong as of now I don't think it was a good idea.

[amateurmacfreak]

Yeah, that's true. Now they'll be Mickey Mouse iMacs. Picture a red iMac with big ears sticking out of the top of it!!!!!!
And Mac Minnie!! Polka-dotted w/ a little skirt and little black ears and...!!!!! Whoa. Getting a little ahead of myself.:o :p

[maya]

Well, it sure save Disney a LOT of bother. I mean the were obligated to have both Pixar and Disney logos the same size in EVERY ad, print, image, etc... And say a Disney presentation of a Pixar Film...


It will most likely have "Disney" in big and "Pixar Studio" in small at the bottom of the "Disney" title. seems logical. ;) :)

[GregA]

I really really really wish that Steve would slap Disney around and do to them what he did to Apple.I can see the rumours now.....

Steve Job's to inspire Disney Corporate Shuffle?
Rumors from reliably placed sources have revealed that Disney is planning an internal corporate rebranding, in order for Disney to "get back to its roots". While details remain sketchy, each division of Disney will be named after one of the themed "lands" in the disney themeparks - the most coveted of which appears to be the "Fantasyland" title.

The breakdown appears to be as follows:
* "Fantasyland" - this will fall to Disney's Studio Entertainment group - which does all Disney's movies and animation.
* "Toontown" is the new name for the animation subsidiary of Fantasyland
* "Adventureland" will contain all of Disney's Parks and Resorts
* "Main Street" will be for Disney corporate functions.

There is some dispute over the naming of the Media Networks group (containing the ABC, Disney channel, ESPN, etc). Prominent TV directors are pushing for the name "Tomorrowland" though Steve Job's is fighting for that title for his own division within Disney.

Less well placed sources indicate that Steve is telling the networks they can have the name "Frontierland"... since if they think that broadcast and cable TV are the new frontier then they should take a fitting name. The fact that Disney's theme parks' 'Frontierland' have an Old West motif is not gaining Steve any fans in that division.

As for Steve's "Tomorrowland", we have no indications what he'll be working on - all he's revealing is that there'll be some really great stuff in the next 2 years, and that he's really excited. While we don't believe that "Corporate Strategic Planning" will be rolled into "Tomorrowland", we suspect Disney's Internet Group will be.

More details when they become available

[mcarnes]

Oh man, just watching that video you can tell Steve has a big plan in his head that he is not sharing. He's going to dance and wait, dance and wait, and them BAM (or boom), in the for kill.

[NickFalk]

You've obviously never heard Lasseter speak about cell animation. I can confidently predict that within a few years, you'll see butt-kickin' cell films out of Disney. And in contrast to the Disney films of the past 20 years, they'll actually have a compelling narrative.
Hopefully yes, but Disney already closed down their 2-D animation department and almost all of the artists went elsewhere. Admitedly they have a few left in their TV-animation department, but it will definitely take time to rebuild this department...

[Fukui]

Adobe buys Macro

Disney buys Pixar

Hell, what's next?
Hoverboard.

[arbroathsmokie]

Well with the Diseny buy out of Pixar the iTunes UK movie content just got even shorter, which now leaves us with music videos, and movie trailers

[wedge antilies]

I think this deal will ACTUALLY HELP iTMS and Apple not hinder it

A lot of people are thinking that other content providers (studios) will not use iTMS because of the Disney connection, well this is just b/s. The studios will use anything that helps its sales.

if you think that studios won't sell content through the iTunes store because the CEO of Apple owns 7% and sits on the board of another company, and lose that potential income stream you are crazy.

Just think about it, are Sony the only company to sell UMD discs for the PSP? No, other studios sell them, even though it assists Sony. Same with Blockbuster video - the company is owned by Viacom which also owns Paramount, but every studio sells through them.

Even on TV, West Wing is made by Warner, yet shown on a Universal owned station. And this example was the VERY first title I researched (as I'm Australian I don't know the US channel/programs intimately) so I'm sure this happens a lot more often.

If iTMS becomes THE place to download movies, which with the Disney content (and a new iPod video designed for higher def films probably coming soon) it WILL be, expect all other studios to follow.

PS: I know it says newbie, but I've been here a LONG time, I just don't speak up that often.

[wedge antilies]

I think this will actually increase Steve's time with Apple, as being on the board of a company is A LOT LESS work than being a CEO.

I take the sale of Pixar to mean that Steve, knows that Apple needs more of his time, as there a lot more HUGE opportunities for Apple in the next few years, and in comparison (and this is not a knock on Pixar who I love) Pixar does not have the opportunities that Apple does at present.

By this I mean. look what has happened to Apple in the last three years - creation of new markets, new industries, new products - and this is THE TIP of the Iceberg, baby. Steve needs to be more hands with Apple than ever.

Oh, one more thing...

My girlfriend picked up the latest Who magazine (Australia's "People" mag) and it had a Time magazine ad. in it which was just the cover of the latest Time with Steve on it (you know the "What's Next" cover) and it said something like Innovator. Visionary. Special Editorial March 1st.

When I saw that, I thought "Wow SOMETHING MAJOR is about to happen!". As Steve and Apple have a close relationship to Apple they would be in the know somewhat.

The scary thing is, I don't think Disney buying Pixar is the only thing that is about to happen.

[mdriftmeyer]

Bob Iger, watch your back!

You know what happened the last time Steve was appointed to a board....

Steve wasn't appointed to Apple's board. He was brought in as a special consultant reporting directly to Gil Amelio. It was Fred Anderson who came to Steve and proposed the ousting of Amelio.

[mdriftmeyer]

Apologies if this is redundant:

http://corporate.disney.go.com/news/corporate/2006/2006_0124_pixar.html

Good read.

[jacobj]

Disney is just a company which has made some recently crappy movies. Calling them satanic is a bit overblown.


Overblown, but somewhat close to the truth... Disney's ethical standards are somewhat awkward. Maybe SJ can change them: we all know that Apple never scr*ws its customers ;)

Steve wasn't appointed to Apple's board. He was brought in as a special consultant reporting directly to Gil Amelio. It was Fred Anderson who came to Steve and proposed the ousting of Amelio.

Are you seriously saying that Steve Jobs did not intend to have a go at getting the Apple CEO position when he sold NeXT?

Well with the Diseny buy out of Pixar the iTunes UK movie content just got even shorter, which now leaves us with music videos, and movie trailers

The deal doesn't complete to mid-year. I doubt that this is anything to do with it and if it is then it's a Steve Jobs decision and not a Disney one. Disney needed Pixar, not vice-versa: I doubt Disney would have been making the demands.

[macintel4me]

I saw an interview with Steve and Disney's CEO. At the end of the interview, Steve said that the video iPod "was just the beginning" as ways Apple and Disney could work together. Hmmmm.....

[jacobj]

I saw an interview with Steve and Disney's CEO. At the end of the interview, Steve said that the video iPod "was just the beginning" as ways Apple and Disney could work together. Hmmmm.....

An Apple/Disney merger? :eek: Assuming that AAPL's share price doesn't continue to plumit (much to Michael Dell's amusement I am sure), then Apple would be the dominant partner, like Adobe to Macromedia or Vodafone to Mannesman etc...

Now that won't happen in the short to mid-term future as the industries are still too different, but then again neither were Apple and EMI similar 5 years ago and yet now that merger would not appear to insane - again Apple would be the agressor.


Edit: my assumptions are being shattered at the moment.. I thought EMI would be the dominant one, but their Market Cap is no where near Apple's. I then thought Sony and again their Market Cap is smaller.. I then had a look at Miscrosoft to make sure that I wasn't going crazy... damn that beast is big!

[rxse7en]

I really wonder how much Steve Jobs/Pixar had to do with the removal of Eisner.

[ipodml]

This proves one thing- shareholders are whores. This reminds me of what Disney did to the Jim Henson company earlier this year when they bought all the muppet characters and the films and shows. They acquired the muppet division then fired everyone inside it. I wouldn't be surprised if the people at pixar, the artists will have their creativity surpressed by Disney. This is just greed on Steve Jobs part and it is a sad ending. Disney strangles everything it buys look at the muppets now.

Also earlier this year they removed the muppet creature shop at disney land which is a place where kids and parents can go to create muppets of their own and learn puppetering to place a store. This just shows the spirit of Disney. :mad: :mad: :mad:

[BenRoethig]

An Apple/Disney merger?

Don't see it happening and only bad things could come of it. The board could be wrestled away from Steve at any time. Remember the last time suits were in control at Apple?

[BenRoethig]

Apple buys MS? :eek:

Now, but a stake in HP or Dell wouldn't be a bad idea.

[jacobj]

Don't see it happening and only bad things could come of it. The board could be wrestled away from Steve at any time. Remember the last time suits were in control at Apple?

Steve would have to have full control of the Disney board before hand! But you're right, I don't really see it happening.

[24C]

snip...And don't be surprised if Steve doesn't get regenerated as a robot shortly after dying anyway. No sleep needed, meaning keynotes 24 hours a day.;)
I know you were joking, but after listening to his Stanford commencement speech, he expects to die every day, likes to think he might have a few decades left and regards death as a process for bringing in the new and clearing out the old. He didn't mention becoming a robot ;)

[24C]

Don't see it happening and only bad things could come of it. The board could be wrestled away from Steve at any time. Remember the last time suits were in control at Apple?
Yep, and it crossed my mind too, but maybe he's learnt something from this experience...it was a low point for him, so he won't have forgotten.

[freeny]

Okay Steve, now that you are one of my boss's, let me make a few requests;

1- Hook me and my production department up with tickets to the keynote speach for the next macworld as well as covering the cost of my trip. This will be our first move in helping me setting up our entire department here at Mobile ESPN as a Mac driven department. Currently only us four creatives are on a Mac and the rest of the department is jealous.

2- Be sure to give all our employees a nice X-mas present next year (iPods for all as well as the entire Pixar library).

3- Let me in on some inside info for upcomming products..... I wont tell, I promise.:)

4- Let me buy you a drink;)

[BenRoethig]

Steve would have to have full control of the Disney board before hand! But you're right, I don't really see it happening.

And the suits in the board won't let that happen. Apple and Pixar both work as they are atypical corporate environments which are pretty well focused on specific niches. His style wouldn't fly at a conglomerate like Disney.

[corywoolf]

Watch Pixar have to move out of their building and into a dull one. Then Disney straightens up the place and puts everyone in an "office space" cubicle.

Probably wont happen, but you never know.
;)

[shazammy]

Um . . . geez.

If the only requirement for a successful studio was $$ and facilities, Disney wouldn't have been sitting in their own creative vomit for the past 20 years. What Disney just bought was the most talented filmmakers in the business. This deal is better for Disney than for Pixar, and the stock prices reflect that.


Are you really being serious here? Remember films like "The Little Mermaid", "The Lion King", "Aladdin"? They made TONS and TONS of money for Disney. Do some research before making a statement like that. And Disney isn't really buying any filmmakers (other than Lasseter) in this deal. They wanted the Pixar brand, name, and track record. This is like paying millions for a sports star who might not make that difference...it's a big risk.

[strange days]

"You may watch your favorite live action film three, four, or five times in your life," said Jobs. "But for a great animation film, your kids may watch it a dozen or a hundred times." He believes the opportunity to view these movies on other devices will eventually play an important roll and expects strong demand from family members to watch certain films from many places on many devices.

...i think he's considering the underteen market for video iPods...

[cgnjny]

It was pontificated some time ago that the future will be nothing but media conglomerates and big corporate entities.

I hope this doesn't signify the first step in the prophecy...

What's coming after this?

Wal-Mart buys out every cheap super-chain?
Universal Music Group is the only record label?
Sears as the only department store?

Sarcasm noted, but it's very interesting

[IJ Reilly]

I submitted this story to MR two weeks ago, with sources, but it apparently wasn't deemed worthy. What's up with that, editorial staff?

[Doctor Q]

I submitted this story to MR two weeks ago, with sources, but it apparently wasn't deemed worthy. What's up with that, editorial staff?This story is about the completed sale, not rumors of an impending sale. The separate story about those rumors was posted only after enough rumors had circulated about it.

[beatle888]

My apologies. (Inserts foot in mouth.)

However, "in charge of theme parks" is a far cry from "creative advisor" or "designing new attractions."


thats the spirit, save that face:p

[beatle888]

Hopefully yes, but Disney already closed down their 2-D animation department and almost all of the artists went elsewhere. Admitedly they have a few left in their TV-animation department, but it will definitely take time to rebuild this department...


Hello!!!!

they just bought Pixar, i think they can handle the 2D animation.

[IJ Reilly]

This story is about the completed sale, not rumors of an impending sale. The separate story about those rumors was posted only after enough rumors had circulated about it.

A story was posted on the rumors? Never saw any before I submitted mine.