Disney Buys Pixar
The change of leadership at Disney from Eisner to Iger also brought the winds of change in the viewpoint of management regarding whether or not to revive negotiations with Pixar, the creative force behind recent Disney successes such as Toy Story, A Bug’s Life, Monsters Inc., Finding Nemo and The Incredibles, which raked in billions for the company.
Earlier, Disney and Pixar had announced that they were parting ways after the release of ‘Cars,’ which would have completed the 5-picture deal agreement that Pixar had with with Disney.
However, sans Pixar, the latest attempt by Disney to produce an in house digital feature film, Chicken Little, proved the company to be ill equipped, creatively and technically, to take on the demands of conceiving its own.
Thus, Disney, under the guidance of Iger who replaced Eisner, has wisely decided to acquire Pixar in a $7.4B deal in January 2006 that results in Steve Jobs, head of Pixar and Apple, to be part of Disney’s board of directors.
Furthermore, Pixar reports that, “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. In addition, 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.â€
For those who are aghast with the $7.4B deal, Barry Ritholtz, chief investment officer with Ritholtz Capital Partners, has this to say, “The question isn’t did Disney pay too much but how expensive would it have been for Disney if Pixar fell into someone else’s hands.â€
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