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The
buzz over Disney looking to acquire Pixar Animation in the
US is growing stronger. Reports indicate that if the deal
goes through then Pixar CEO Steve Jobs could become a member
of Disney's board.
The
two parties will meet on Monday 23 January 2006 to discuss
the plan of action.
Job's
has a 50 per cent stake in Pixar which is is worth over $3.5
billion. This would be more than enough to turn him into Disney's
largest individual shareholder should he accept a stock swap.
Disney of course would benefit in a huge way. Its animation
division is already starting to feel some heat as the deal
with Pixar comes to a close. The last film in its 14 year
deal with Pixar is Cars which will be released later this
year.
In
the past couple of years there had been problems between jobs
and former Disney CEO Michael Eisner. Jobs had criticised
Disney's creative and financial practices. He had accused
the company of trying to squeeze the last penny out of hit
franchises, regardless of quality. Iger however who took over
has been keen to mend fences.
Buying
Pixar could make Disney poorer to the tune of $8 billion.
Whether Jobs will sell is doubtful reports state, given his
investment in Apple, attachment to Pixar, and the potential
cost to Disney. The other issue is whether Pixar talent like
John Lasseter who directed Toy Story will stay should an acquisition
go through. Disney's culture is said to be more restrictive.
Last year Disney had struck a deal with Apple. Some shows
like Desperate Housewives are available for download for Apple's
video iPod"
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