Terro
10-14-2005, 10:29 AM
Sanders Morris Harris analyst David Miller said there had been a flare of speculation about a new deal.
"This just proves that -- Pixar being down and now up -- the Street doesn't care about economic terms. They only care about another deal," Miller said.
"If they (both) land a deal they can't lose and both stocks should go higher," Miller said. "If they permanently divorce Disney ... (Pixar's) net income would essentially double. We just don't think Pixar can lose."
The two companies have long been engaged in on-again, off-again talks over a potential new distribution agreement (http://money.cnn.com/2005/04/25/news/fortune500/disney_pixar/index.htm) that would extend their partnership, and they reentered talks as Iger prepared to assume the Disney CEO job from Michael Eisner, who had a rocky relationship with Jobs.
Disney previously had rejected Pixar offers as bad deals for the bigger media firm, but investors punished Disney for failing to make a deal with the studio that has created a string of computer-animated hits from "Toy Story" to "Finding Nemo" and "The Incredibles."
Disney's current agreement with Pixar expires next summer with the release of "Cars." Analysts expect Pixar to push for a distribution deal similar to "Star Wars" director George Lucas' agreement with Fox, in which case Pixar would pay a percentage of film revenue as a distribution fee and keep ownership of films and characters.
Under the current agreement, Disney co-owns the films, and splits the profits with Pixar. Disney also effectively has sequel rights to the characters in the current deal.
Source = CNN Money http://money.cnn.com/2005/10/13/news/midcaps/pixar_apple.reut/index.htm?section=money_latest
"This just proves that -- Pixar being down and now up -- the Street doesn't care about economic terms. They only care about another deal," Miller said.
"If they (both) land a deal they can't lose and both stocks should go higher," Miller said. "If they permanently divorce Disney ... (Pixar's) net income would essentially double. We just don't think Pixar can lose."
The two companies have long been engaged in on-again, off-again talks over a potential new distribution agreement (http://money.cnn.com/2005/04/25/news/fortune500/disney_pixar/index.htm) that would extend their partnership, and they reentered talks as Iger prepared to assume the Disney CEO job from Michael Eisner, who had a rocky relationship with Jobs.
Disney previously had rejected Pixar offers as bad deals for the bigger media firm, but investors punished Disney for failing to make a deal with the studio that has created a string of computer-animated hits from "Toy Story" to "Finding Nemo" and "The Incredibles."
Disney's current agreement with Pixar expires next summer with the release of "Cars." Analysts expect Pixar to push for a distribution deal similar to "Star Wars" director George Lucas' agreement with Fox, in which case Pixar would pay a percentage of film revenue as a distribution fee and keep ownership of films and characters.
Under the current agreement, Disney co-owns the films, and splits the profits with Pixar. Disney also effectively has sequel rights to the characters in the current deal.
Source = CNN Money http://money.cnn.com/2005/10/13/news/midcaps/pixar_apple.reut/index.htm?section=money_latest