updated 02:20 pm EST, Tue January 17, 2006
Pixar-Disney rumors fly
With the end of the current Pixar-Disney distribution agreement nearing and the series of moves by Pixar to jockey for more leverage, rumors are flying that Apple CEO Steve Jobs could be the next chairman of Walt Disney. The 14-year deal ends this summer after the release of Pixar's Cars animated film, and re-negotiation talks have . With Jobs holding 50.6 percent of Pixar, he could sell the company if he wished, but will likely not sell Pixar given his current investment in Apple, attachment to Pixar, and the potential cost to Disney, opines BusinessWeek news analyst Ronald Grover.
"Buying Pixar would cost Disney a bundle, maybe $8 billion or $9 billion and could send Disney's stock into a tailspin. When the rumor first surfaced on Jan. 4, the share price promptly dropped 1.5 percent in the 45 minutes before the market closed that day."
Disney and Pixar continue to hold talks, and a January 23 meeting is in place during which Disney will decide what sort of deal, if any, to make with Pixar. According to Grover, the talks will likely end in an extension and adjustment of the previous agreement, as Disney stands to gain from a relationship with Jobs-- Disney was the first to offer TV and other content for download via the iTunes video service.