On Tuesday (Jan. 24) afternoon, Walt Disney Co. announced that it will acquire animation giant Pixar in a deal expected to be worth roughly $7.4 billion in stock, changing the face of both companies.
Under the basic terms of the agreement, 2.3 Disney shares will be issued for each Pixar share. The deal will be completed this summer. Disney animation and Pixar will now be combined.
"With this transaction, we welcome and embrace Pixar's unique culture, which for two decades, has fostered some of the most innovative and successful films in history," says Disney CEO and President Robert Iger. "The talented Pixar team has delivered outstanding animation coupled with compelling stories and enduring characters that have captivated audiences of all ages worldwide and redefined the genre by setting a new standard of excellence."
When the deal shakes out, Pixar CEO Steve Jobs will become Disney's largest single shareholder. He will be added to Disney's board of directors. 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.
"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," says Jobs in a corporate statement. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."
For more than a decade, dating back to 1991, Disney and Pixar had a creative partnership that was both creatively and financially rewarding, yielding massive box office and Oscars for films like "Toy Story," "Finding Nemo" and "The Incredibles." As Pixar and its unique brand of computer animation soared, though, Disney's traditional animation had struggles with obvious disappointments like "Home on the Range" and "Treasure Planet."
With the final Disney-Pixar film, "Cars," approaching, negotiations between the two companies for a new pact began in early 2003, but things became strained in 2004, with Pixar's demands of full ownership of its productions serving as a major stumbling block. Things were also strained when Disney announced plans to make a "Toy Story 3" without Pixar's involvement.
Those tensions appear to be in the past.
"For many of us at Pixar, it was the magic of Disney that influenced us to pursue our dreams of becoming animators, artists, storytellers and filmmakers," says Lasseter. "For 20 years we have created our films in the manner inspired by Walt Disney and the great Disney animators -- great stories and characters in an environment made richer by technical advances. It is exciting to continue in this tradition with Disney, the studio that started it all."
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I'm actually surprised it took this long for Disney to buy Pixar, it's a good purchase for them as Pixar makes great movies.
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