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Businesses Entertainment

Pixar For Sale? 251

blamanj writes "The on-again off-again relationship between Pixar and Disney is currently on-again, and in a big way according to this story. Pixar originally signed a distribution deal which gave Disney a percentage of the profits and a distribution fee of 10%-15% of revenues. With Pixar revenues well over two billion dollars on their films, Jobs was looking for a better deal and dropped negotiations with the mouse. But now, according to CNN, he might be willing to sell the company outright. I can't believe that Pixar employees would be happy."
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Pixar For Sale?

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  • by magicRob ( 815117 ) on Wednesday November 02, 2005 @04:41AM (#13930535) Homepage
    So Jobs cut's a deal with his mates at Disney for TV over iTunes then once he has what he wants, tells Disney to bugger off with distribution of the Pixar flicks. I love it.
  • by Matarick ( 566397 ) on Wednesday November 02, 2005 @04:41AM (#13930536)
    I wouldn't be suprised if Lucasfilm bought back Pixar from Jobs since Lucasfilm sold Pixar in 1986 [alvyray.com]. I just hope reclaimed Pixar would work on other project besides Star Wars films.
  • by 246o1 ( 914193 ) on Wednesday November 02, 2005 @04:53AM (#13930558)
    "Shareholders own and manage the company, not employees. If employees dont like it they can leave."
    So can shareholders, except they don't have to move or disturb their life in any way. Just because someone doesn't own a company doesn't mean that we shouldn't feel sympathy for them, especially considering /.ers are much more likely to be employees at pixar than major stockholders.
  • by JanneM ( 7445 ) on Wednesday November 02, 2005 @04:54AM (#13930561) Homepage
    Shareholders own and manage the company, not employees. If employees dont like it they can leave.

    For companies that have much of their value in the talents of their employees, them not liking things and leaving can quickly become a very big problem for the company and its owners, to the point that it may inhibit a sale (or other management move) altogether.

    A quibble: Shareholders own the company. Executives manage it. Shareholders can only influence the executives through voting for the board, who in turn oversee the executives. Unless you are a large enough shareholder to be able to put "your" people on the board you don't have much power at all.
  • Give Jobs Credit (Score:5, Interesting)

    by putko ( 753330 ) on Wednesday November 02, 2005 @05:14AM (#13930613) Homepage Journal
    Although I'd never buy a Mac, I give Jobs and his employees credit for:

    1. Showing the hacks who run Disney that not all movies have to suck. It is possible to make an animated movie that's actually watchable and somewhat entertaining. Just think about the crappy cartoons that existed before Pixar movies, in case you don't agree.

    2. Showing that Disney totally sucks. Empereror has no clothes. They can crank out schlocky sequels, but that's about it. A bit like the video game business -- indies do it better. The big publishers are filled with money-grubbing power seekers. With Jobs, I think that money is just for keeping score -- his main goal is to make superb stuff.

    3. Pixar has run cirles around Eisner, Katzenberg, Spielberg and Geffen. The media bosses suck. Jobs has more talent than those greedy, grasping, imitative, uncreative hacks.

  • by MoThugz ( 560556 ) on Wednesday November 02, 2005 @05:27AM (#13930649) Homepage
    Well, that's one way to look at it. But from my experience, if I really wanted the "talents" behind a company, I'd headhunt the guy. And to be honest, this would be the easiest thing to do... a little more dollars here, a little bit more perks there, chances are I can get my target in an acceptable timeframe.

    If I were to takeover a company like Pixar, let's be honest here... name me 2 or 3 animators that you know for sure works there? If you're not really into the animations industry (or are not a fan of the particular artists), you'd be hard pressed to come up with those names. It's all abound the branding, baby.

    I could start a brand new animations company with the best personnel in the world, but a large majority of studios would still pick Pixar over my company because of the brand power itself.
  • by Anonymous Coward on Wednesday November 02, 2005 @05:42AM (#13930698)
    Having worked at Disney recently, I think you're absolutely correct in assuming bringing Pixar in-house would not help. Disney has evolved into a corporate monster where the lawyers have a say in the creative and things don't get done since everything the company releases has to be super safe for the kids. People in-house are worried about not being "edgy" enough to attract teens while at the same time thinking that anything released by the company shouldn't worry the parents of a two-year old. Talk about conflicting priorities!

    Maybe if the current management was replaced by Pixar employees... :)

    Posting anonymously, for obvious reasons.
  • Depends on where they are on the geek scale. Disney being the analog of Satan in the computer/copyright world, no I can't imagine they'd be very happy.

    OTOH, if they still believe that hiding behind that multiply-protected-by-acts-of-Congress cute mouse of Disney's is... more cute mice, then I'm sure they'd be ecstatic.

    The question I want to know is why Jobs would sell Pixar? The clearest answer I can see has something to do with Jobs's little iPod video thingy and Disney's little "we own your whole damn childhood" movie archive...
  • Jobs cashing out ? (Score:5, Interesting)

    by shashark ( 836922 ) on Wednesday November 02, 2005 @06:14AM (#13930764)
    Just a random thought: Considering what Jobs can do with Apple, Jobs would need to buy out some minority partners to have more board control in Apple (Valued at about $50bn http://finance.yahoo.com/q?s=aapl [yahoo.com]) -- and for that he would need good cash. That cash can come out of Pixar.

    Apple would sure do better with Jobs in better control (of the board) and with Microsoft blundering big-time, MAC could be the next windows. Better control would also decrease the probability of a Sculley-like 1985 takeover Deja-vu.

    On a side note, the fact that Google's founders have a unique 3:1 voting power in the board (you can google to find more about it) reflects on the way they focus and innovate tirelessly. Also, the stories of Billy B Gates and Larry "I am God" Ellison and numerous other Successful Owner-CEOs would tell you that when it comes to running (and being in control of) your own damn public limited company, your ownership (shares) is very critical, no matter how good (or bad) a CEO are you.

    And, as a reminder, we must never forget how HP (the HP way) got screwed by board politics.

    Let pixar be Disney's, but I'll bet you'll want Apple to be Jobs. If Pixar's sale can help him do that, so be it.

    Cheers!
    (Followed by Sculley "I'm the CTO" Jokes...)
  • by putko ( 753330 ) on Wednesday November 02, 2005 @06:43AM (#13930827) Homepage Journal
    The Pixar/Disney story is very interesting, if only for showing the kind of attitude that Pixar has (compared with the normal Hollywood flacks): when push came to shove, Pixar made the move "their way", walking away from the Disney bosses and their "Geld". Shortly thereafter the Disney media bosses decided it really was the best thing ever, and got back on board. And they proceeded to take as much credit for the outcome as they could, of course. If you've ever worked with the publisher/media boss types, you know what they are like, and greatly appreciate the backbone that Jobs and company showed.

    Here's the source of this quote [sfgate.com]:

    ... Disney, which was bankrolling the project, peppered the young animators with notes and suggestions. The story was too juvenile, the higher-ups said, and the characters had to be edgier. Afraid to trust themselves, Lasseter and his crew tried to follow all the directions.

    It was, nearly everyone agrees, a train wreck. Disney hated the movie and the idea -- and shut it down.

    "Yeah that was fun,'' jokes Pete Docter, who was nominated for Oscars for "Toy Story'' and "Monsters, Inc.'' "And it happened right around Christmas, too.''

    Lasseter recalls that he "begged'' for two weeks to fix things. The animators went back, took out all of Disney's suggestions and made the movie they wanted to make in the first place.

    And, naturally, when they screened the new version, Disney execs loved it...

    Thanks media bosses!
  • by wasudeo ( 201920 ) on Wednesday November 02, 2005 @07:02AM (#13930873)
    If Disney buys Pixar what would happen to its software arm? For the uninitiated, they make a world class renderer called RenderMan.


    Somehow I can't see Disney getting into software...

  • by jurt1235 ( 834677 ) on Wednesday November 02, 2005 @07:33AM (#13930937) Homepage
    Money in certain circles is equal to power. Bill Gates has more money than Larry Ellison, and if you see and hear Larry, it certainly looks like that irritates the hell out of him, so for Larry money equals power. The other way around: Bill Gates does not seem to care, but at the same time displays his wealth with huge donations to research on malaria, and to the Bill and Melissa Gates foundation, which I think is a great way to display your wealth.
    Maybe Jobs is also the person who wants more power, and having read parts of the unofficial unauthorized biography of Jobs (by some journalist), and than mainly the pieces describing is character, power means a lot to Jobs. Since money does equal power to a certain extent, it can be that it satisfies that part of his personality, even if it doesn't matter to the wealth he displays.
    Seeing the current billionaires who count, displaying wealth is for the kids mainly (Paris ea). The big IT tycoons do not really display their wealth, except in gadgets (-:. The billionaire with most display of wealth is I think Donald Trump, who loves his private jet(s?), cars and names on the buildings.
    So in my opinion more money for Jobs would satisfy his ego, but would not change his appearance to the outside world in any way. And for the last part: Why should he. Turtlenecks and jeans are probably more comfortable than a suit (only turtlenecks is soo seventies (and don't dare to call it retro, will ya)).
  • by Rogerborg ( 306625 ) on Wednesday November 02, 2005 @07:47AM (#13930962) Homepage
    Unless Disney give them serious personal investment in the company, they'll just up and leave to form a new competing studio. That's pretty much par for the course.
  • by rolfwind ( 528248 ) on Wednesday November 02, 2005 @08:25AM (#13931074)
    But then the question is: why sell the company?

    He has that 3bn either way, just as Bill's money really isn't liquid but is in his stock.

    I assume that Apple is taking up most of his time and he doesn't feel comfortable running Pixar w/o running Pixar, so to speak. I don't think it's about the money alone.
  • by ultranova ( 717540 ) on Wednesday November 02, 2005 @08:40AM (#13931117)

    Shareholders own and manage the company, not employees. If employees dont like it they can leave.

    Then perhaps the employees should own the company. Being a janitor equals owning 1 share, secretary 3 shares, CEO 10 000 shares... And, of course, instead of paying wages, pay a monthly dividend. That would solve the whole problem, and likely give the employees better work ethics too, since the better job they do, the more valuable the company (and therefore their share of it) comes. Kicking someone from the company means that the company has to buy his share, so layoffs wouldn't happen quite so often; hiring new people is the most problematic part in this model - should they pay for the shares ?

    Then again, the workers collectively owning the means of production they use in their job is, well, communism, and we can't have that, now can we ?

  • by EXTomar ( 78739 ) on Wednesday November 02, 2005 @10:07AM (#13931580)
    Yes if Disney bought Pixar they would receive a company full of talented, driven artists but that is only half of the reason why Pixar movies do so well. The other half is that management and producers protects the production. The classic story about Toy Story is that Disney fronted the money and was unhappy about the "juvenile" nature of the story and wanted to make it "modern", edgy, or whatever kids call being "cool" these day, they proceeded to hack it up. The result was crappy, no one liked it, everyone was unhappy, and Disney was moments from pulling the plug. It wasn't until Lasseter stepped in and said 'enough is enough' and fixed it by going back to their way that the project showed promise. The rest is history. Award winning history no less.

    So unless Disney takes a hands off approach if they buy up Pixar (I still doubt this would happen...would Job's ego allow it?) it will go the way of their ill fated Disney Orlando Animation Studio (which made Lilo). It isn't that Pixar has talented people (go figure...Disney has them too). It is the fact that the rank and file management all the way up to Lasseter understands they need to "protect the baby". Reguardless of whether or the story is stellar, interferrence will definately rob it any chances it had of being so.
  • by PortHaven ( 242123 ) on Wednesday November 02, 2005 @10:22AM (#13931712) Homepage
    Apple = Steve Jobs
    Pixar = Steve Jobs

    Why not Video iPod and downloadable "Pixar" films. Especially as it seems when you look at the list of travel movies a family brings with them for the kids - Pixar films tend to top the list.

    So the ability to download Toy Story, A Bug's Life, Toy Story 2, Monster's Inc, Finding Nemo, The Incredibles could be a boon for iTunes AND add additional sales for those movies.

    (In truth, I think Steve Jobs is better off waiting a few more movies and buying Disney. *lol*)
  • by glass_window ( 207262 ) on Wednesday November 02, 2005 @10:46AM (#13931919)
    Actually, it would be very interesting if Apple bought Pixar.
  • by albanwr ( 892290 ) on Wednesday November 02, 2005 @11:01AM (#13932049) Homepage
    Pixar is Job's Golden monkey his gardens of Babylon etc etc.

    This just isn't gonna happen, now maybe he is buying Disney. How ? I can't answer that; but think about the theme parks, all that shiny plastic and aluminium....... mmmm

    ------ http://www.albanwr.com/ [albanwr.com]
  • by nellardo ( 68657 ) on Wednesday November 02, 2005 @12:57PM (#13933174) Homepage Journal
    Sell Renderman to Apple?

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