Disney and Pixar Tie the Knot
It seems that the rumors are indeed true, as they often are. This week The Walt Disney Company announced its purchase of animation powerhouse Pixar in a deal worth around $7.4 Billion. The all-share deal will make Steve Jobs, the chief executive of Apple who is also the largest shareholder in Pixar, around $3.5 Billion and the single largest shareholder in Disney. Jobs will now be a commanding presence in the film, entertainment, technology, computer and music industry through Apple's iTunes Music Store. He has ruled out becoming Disney's chairman in the future but has not turned down a board of directors position.
Jobs created Pixar in 1986 when he paid $10 Million for the computer animations division of Lucasfilm, owned by "Star Wars" creator George Lucas. Not a bad profit for only twenty years. Of course, speculation abounds in Hollywood about what this means for Pixar and for Disney. Many are of course hoping that Disney keeps in mind that all of the films that have come out of Pixar have been profitable, including the mega hits "Toy Story", "Monsters Inc." and "Finding Nemo".
In recent years, Disney has struggled to produce the types of blockbuster animated movies that the company built its reputation on. Disney hopes the deal will give it the most dominant animation-production house in the industry.
Plus, what does this do for a company like Apple and for Steve Jobs? With Apple and Disney so closely tied now isn't it only a matter of time before we see Disney creating content specifically for the iPod and for some other as yet unnamed digital devices produced by Apple. Pehaps a Disney/Pixar produced animated series exclusively for the iPod and the iTunes Music Store about a little consumer electronics device that found its courage to stand on its own two "feet" and took over the world? "iPod Story" anyone?