http://moneycentral.msn.com/content/invest/extra/P73485.asp Computer animation studio Pixar, founded by Steve Jobs and creator of hits like 'Toy Story' and 'Finding Nemo,' poised to drop Disney and seek new distributor. Pixar Animation Studios said on Thursday it ended talks with Walt Disney to renew a lucrative movie distribution deal that has resulted in such blockbusters as "Toy Story'' and "Finding Nemo.'' Pixar (PIXR, news, msgs), the computer animation pioneer founded by Apple Computer's (AAPL, news, msgs) Steve Jobs, said it would look for another studio partner to distribute its films starting in 2006, when its current deal with Disney expires. The move was an unexpected blow to Walt Disney Co. (DIS, news, msgs), which reaped a financial bonanza and critical acclaim from the partnership and has struggled with its own strategy for animation. Disney shares dropped 4% in after-hours trade. The five movies that Pixar and Disney have released since 1995 have earned more than $2.5 billion at the global box office and accounted for a large share of Disney Studios' operating profit in recent years. "After 10 months of trying to strike a deal with Disney, we're moving on,'' said Jobs, Pixar's chief executive. "We've had a great run together -- one of the most successful in Hollywood history -- and it's a shame that Disney won't be participating in Pixar's future successes.''
This really is a huge blow to Disney. Wow. I'm glad I don't have any stock. Pixar has been a phenomenal investment for Jobs.. no question about it.
I think Disney is making a huge mistake. But, Pixar may be asking for too much of the pie. I can wait to see "the Incredibles" that looks hilarious. DD
Disney absolutely blows now. From the crap "original" shows on the Disney channel to movies like Brother Bear. They've been piggy backing on Pixar for too long, relying on their resources as the only excuse for the partnership. They really did not have the upper hand negotiation wise and should have been happy with whatever Pixar offered. Now a smarter studio is gonna reap some serious benefits.
DD, I would think that games makers like yourself would be salivating to work with Pixar on a game spinoff from one of their movies. Has your company got the chance to do that yet? Just curious.
FYI Pixar seems to be doing quite a bit better recently than The Walt Disney Company, but the phrases "Steven Jobs" and "errors of judgement caused by hubris" are not unfamiliar to one another. For reference see history of Wintel vs. Macintosh Jobs should be careful. This is ground upon which he has suffered total defeat upon in the past.
Yeah, as much as I love Disney movies, Disney has been reaching out on a limb for a long while... I think that limb is breaking. Almost all of their hit movies released in the past 5 years or so have been out of character from the "classical" Disney image. I understand progressing with the times and all, but it just isn't working out too well. The biggest clue had to be when DISNEY put out a PG13 movie.... This downfall was bound to happen.
Disney went to hell when they decided to make a sequel for every other movie they ever made a few years ago. I still think First Kid is a great movie though, some of Sinbad's finest work.
i seem to remember a cartooon called that spring leg guy . . . .multiple guy . . .that type of thing Is this the same thing? Rocket River and yes. . . it is a HUGE mistake by Disney
I'm actually not suprised about this at all. I've talked about this with my best friend, who's a huge Disney fan. Back in the mid 90's, Pixar needed Disney's name, and Disney needed to explore new opportunities since hand drawn animation was becoming extremely expensive and less profitable. Now, the name "Pixar" is almost as recognizable as the Disney name, and Disney has scrapped their traditional animation department after Pixar's immense success with computer animation. I'm actually glad this is happening. Pixar puts all the grunt work into those movies, and Disney reaps most of the rewards with the toys, cereal, and all that other crap they sell. Pixar needs to bid out the distribution rights for it's movies on a movie by movie basis. They'll start to REALLY rake it in, then... ...anybody got a stock quote on Pixar?
This great news comes on the heels of this letter from Roy Disney a few weeks ago: Mr. Michael D. Eisner, Chairman The Walt Disney Company 500 South Buena Vista Street Burbank, CA 91521 Dear Michael, It is with deep sadness and regret that I send you this letter of resignation from the Walt Disney Company, both as Chairman of the Feature Animation Division and as Vice Chairman of the Board of Directors. You well know that you and I have had serious differences of opinion about the direction and style of management in the Company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities back to you. I find this intolerable. Finally, you discussed with the Nominating Committee of the Board of Directors its decision to leave my name off the slate of directors to be elected in the coming year, effectively muzzling my voice on the Board -- much as you did with Andrea Van de Kamp last year. Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the Company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994, the Company has lost its focus, its creative energy, and its heritage. As I have said, and as Stanley Gold has documented in letters to you and other members of the Board, this Company, under your leadership, has failed during the last seven years in many ways: The failure to bring back ABC Prime Time from the ratings abyss it has been in for years and your inability to program successfully the ABC Family Channel. Both of these failures have had, and I believe, will continue to have, significant adverse impact on shareholder value. Your consistent micro-management of everyone around you with the resulting loss of morale throughout this Company. The timidity of your investments in our theme park business. At Disney's California Adventure, Paris, and now in Hong Kong, you have tried to build parks "on the cheap" and they show it, and the attendance figures reflect it. The perception by all of our stakeholders - consumers, investors, employees, distributors and suppliers - that the Company is rapacious, soul-less, and always looking for the "quick buck" rather than the long-term value which is leading to a loss of public trust. The creative brain drain of the last several years, which is real and continuing, and damages our Company with the loss of every talented employee. Your failure to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companies distributing our products. Your consistent refusal to establish a clear succession plan. In conclusion, Michael, it is my sincere belief that it is you who should be leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company. I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don't know if you and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision. In accordance with Item 6 of Form 8-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K. With sincere regret, Roy E. Disney cc: Board of Directors
stupid, stupid, stupid...Eisner is a moron. ignores new investment in the parks...cuts back park hours..now loses Pixar. nice going, Mike.
Now that I'm not a kid anymore, I kind of hate Disney. All they make is crap nowadays and they exploit the people who actually do all the work making their good stuff. Pixar deserved much more of the profits than what they were getting it sounds like. You'd think Disney would be NOT Satan and reward them. Yes, Disney defintely sucks more now. The fact that they make mostly crappy sequels now just shows how unoriginal they are.
Disney is a lot more than Walt Disney Pictures. Disney also owns ABC, ESPN, A&E, E!, Lifetime, etc. Disney also owns movie studios like Touchstone, Buena Vista, Mirimax, etc. So if you don't like the movies made by Walt Disney Pictures which is understandable since they are geared toward a much younger audience, maybe you've enjoyed movies from their other studios. Mirimax came out with some pretty successful movies recently like Chicago, Cold Mountain, and Kill Bill.
