Essays /

Notes Essay

Essay preview

Disney buys Pixar
House of Mouse is teaming up with Pixar in a $7.4 billion deal. Steve Jobs to become board member at Disney. By Paul R. La Monica, CNNMoney.com senior writer
January 25, 2006: 8:44 AM EST

NEW YORK (CNNMoney.com) - Mickey Mouse and Nemo are now corporate cousins. Walt Disney has announced that it is buying Pixar, the animated studio led by Apple head Steve Jobs, in a deal worth $7.4 billion.

Speculation about a deal being imminent raged on Wall Street for the past few weeks. Disney has released all of Pixar's films so far, but the companies' current distribution deal was set to expire following the release of this summer's "Cars." The merger brings together Disney's historic franchise of animated characters, such as Mickey, Minnie Mouse and Donald Duck, with Pixar's stable of cartoon hits, including the two "Toy Story" films, "Finding Nemo" and "The Incredibles."

Steve Jobs, the CEO of Apple and Pixar, will become a board member of Disney following the closing of Disney's purchase of Pixar. QUICK VOTE
Is Pixar worth the $7.4 billion that Disney will pay?
Yes
No
Don't know
or View results
"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," said Jobs in a statement. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."

As part of the deal, Jobs will become a board member of Disney, the companies said. And John Lasseter, the highly respected creative director at Pixar who had previously worked for Disney, will rejoin the House of Mouse as chief creative officer for the company's combined animated studios and will also help oversee the design for new attractions at Disney theme parks.

The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving" growth across our businesses," said Disney CEO Robert Iger in a written statement.

During a conference call with analysts Tuesday, Iger said that acquisition discussions had been going on for the past several months. Jobs added that after a "lot of soul searching," he came to the conclusion that it made the most sense for Pixar to align itself with Disney permanently instead of trying to distribute films on its own or sign with another movie studio partner.

According to the terms of the deal, Disney (Research) will issue 2.3 shares for each Pixar share. Based on Tuesday's closing prices, that values Pixar at $59.78 a share, about a 4 percent premium to Pixar's current stock price. Shares of Pixar (Research) fell slightly in regular trading on the Nasdaq Tuesday but gained nearly 3 percent in after-hours trading. The stock has surged more than 10 percent so far this year o...

Read more

Keywords

000 1.5 1.65 1.8 10 100 100m 108.62 11.5 19.9 1979 1980s 1998 2 2.3 20 2001 2003 2004 2006 2007 2008 2009 24 25 26 27 29 3 3.2 36 4 44 59.78 60 65 7.4 8 80.1 880m abc abl absenc absolut accept accord account accur accus acquisit across ad add addit administr advertis afloat after-hour ag agenc aggress ago agre agreement align alreadi also america american amic among analyst anim announc annual anoth appl april arena around articl artist assess attract auburn automak automobil avoid back bailout bankruptci barri barrier base basketbal becom began behind believ benefit benz bernoff better big biggest billion bmg bn board bore box branch brand brief brin bring broke build busi businessmen buy buyer cabl california call came capit car cartoon cbs ceo cerberus certain cg cg-anim chad chairman chang charact chen chicken chief chrysler claim clip close cnnmoney.com collabor collaps combin come comeback committ communic compani comput computer-gener conclus confer connect consum content convinc copyright corpor could coup cousin creat creativ creator critic cuggino current cut cutting-edg daili daimler daimler-benz daimlerchrysl date day deal decid delight demonstr describ design desper despit develop differ digit director disclos discuss dismal disney disney-produc distribut dog dollar domin donald doubl double-digit doug drive duck due duo dynam earn edg eight eisner electron els emerg enabl end energet engin enhanc enter entir entiti entrepreneur equal equiti eric espn est euphoria even everi everybodi everyon everyth evolut exchang excit execut expect expens expir explor extend fact fall famous fan fanci far feder feel fell fiat file film financi find firm first fiscal flat flock flop focus follow ford foreign former forrest fortun fought found founder fourth franchis frankfurt full fund futur gain garag general generat german get global go googl govern great gross group grow growth hand harri head headquart hear hedg help hess high hill histor histori hit hitwis holder host hour hous housew howev huge hurley iacocca idea iger imagin immin impli import impress in-hous includ increas incred independ individu industri inform innov instead interact interest internet invest investor isn issu italian itun januari jeep jeffrey jeffri job john josh justifi keen kept know known la label larg largest larri lasset last late later launch law lawsuit leadership led lee legitimaci less licens like line litig littl live ll llc logic logsdon look lose loss lost lot love lover luxuri m made maintain major make maker manag mani mark market may mean media member merced mercedes-benz mere merger michael michigan mickey million minivan minni model mojo money monica monitor month month-old morri motor mountain mous move movi mr much music nasdaq nba nd near near-collaps need negoti nemo nesbitt net network new next night non non-committ note noth novemb number obama observ offer offic old oliv one onlin open opera opportun option overse owe own page pair parisian park part partner partnership past paul pay peopl per percent percentag perform perman person pinpoint pixar place plan platform player popular portfolio possibl post potenti predict premium presid pressur pretti previous price prime prior privat private-equ probabl problem produc product profit program programm prospect protect prove provid publicis purchas question quibbl quick quotient r rage rapid rapunzel rat ratatouill reason recent record reduc reflect regular rejoin relationship releas remain remark remind renam report repres requir research resourc respect restaur result revenu reviv right risk riski ritholtz rival robert rose sag said sale save say schmidt search secret secur seed seek seen sell senior sens separ septemb sequel sequoia sergey set sever share sharehold short short-liv short-term show sign signific similar sinc sit site situat six slight smart smarter soap solut solv someon soni soon soul sourc specul spend splashi sport spur stabl stage stagg stagnat stake state statement states-bas stay steve still stock stockbrok stockhold stockmarket store stori strain strateg stream street strike strong struggl studio stuttgart stuttgart-bas succeed success suggest summer surg surpris system takeov talk team technolog technology-domin televis tell tentat term theme think third third-largest thoma though thought throughout tie tie-up time tip titl today togeth took toy toyota track trade tremend trendset tri tuesday tune twist two u.s unauthoris unbraid unit univers unless unthink unveil upload upstart us use user user-cr valu ventur video view violat viral vision vivendi vote wall walt want warner watch way wealthiest websit week well windfal without word work world world-fam worldwid worth would writer written yahoo year yes yesterday yet york youth youtub