Disney Goes to Infinity and Beyond with $7.4 Billion Pixar Purchase
It’s a done deal: The Walt Disney Co. will acquire Pixar Animation Studios for an all-stock transaction to be completed this summer. Under terms of the agreement, 2.3 Disney shares will be issued for each Pixar share. Based on Pixar's fully diluted shares outstanding, the transaction value is $7.4 billion ($6.3 billion net of Pixar's cash of just above $1 billion).
As a result of the acquisition, Disney is now poised to reclaim its position as animation leader while expanding its global entertainment reach and tightening its ties to Apple Computer via its strong relationship with Apple/Pixar head Steve Jobs.
Pixar president Ed Catmull will serve as president of the combined Pixar and Disney animation studios, reporting to Disney Co. president/ceo Robert Iger and Dick Cook, chairman of The Walt Disney Studios. In addition, Pixar evp John Lasseter will be chief creative officer of the animation studios, as well as principal creative advisor at Walt Disney Imagineering, where he will provide his expertise in the design of new attractions for Disney theme parks around the world, reporting directly to Iger. Pixar chairman and ceo Jobs will be appointed to Disney's board of directors as a non-independent member. With the addition of Jobs, 11 of Disney's 14 directors will be independent. Both Disney and Pixar animation units will retain their current operations and locations.
"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,” Iger said. “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. The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses. This investment significantly advances our strategic priorities, which include -- first and foremost -- delivering high-quality, compelling creative content to consumers, the application of new technology and global expansion to drive long-term shareholder value."
"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," said Jobs. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."
"Pixar's culture of collaboration and innovation has its roots in Disney Animation. Our story and production processes are derivatives of the Walt Disney `school' of animated filmmaking," said Dr. Catmull. "Just like the Disney classics, Pixar's films are made for family audiences the world over and, most importantly, for the child in everyone. We can think of nothing better for us than to continue to make great movies with Disney."
The acquisition brings to Disney Pixar’s talented team, which will be involved in the nurturing and future development of Pixar properties, including potential feature animation sequels, which Disney prepared to make on its own in-house, commencing with a proposed TOY STORY 3 feature.
"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," said 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."
"The wonderfully productive 15-year partnership that exists between Disney and Pixar provides a strong foundation that embodies our collective spirit of creativity and imagination," said Cook. "Under this new, strengthened animation unit, we expect to continue to grow and flourish."
As a result of the acquisition, Disney is now poised to reclaim its position as animation leader while expanding its global entertainment reach and tightening its ties to Apple Computer via its strong relationship with Apple/Pixar head Steve Jobs.
Pixar president Ed Catmull will serve as president of the combined Pixar and Disney animation studios, reporting to Disney Co. president/ceo Robert Iger and Dick Cook, chairman of The Walt Disney Studios. In addition, Pixar evp John Lasseter will be chief creative officer of the animation studios, as well as principal creative advisor at Walt Disney Imagineering, where he will provide his expertise in the design of new attractions for Disney theme parks around the world, reporting directly to Iger. Pixar chairman and ceo Jobs will be appointed to Disney's board of directors as a non-independent member. With the addition of Jobs, 11 of Disney's 14 directors will be independent. Both Disney and Pixar animation units will retain their current operations and locations.
"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,” Iger said. “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. The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses. This investment significantly advances our strategic priorities, which include -- first and foremost -- delivering high-quality, compelling creative content to consumers, the application of new technology and global expansion to drive long-term shareholder value."
"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," said Jobs. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."
"Pixar's culture of collaboration and innovation has its roots in Disney Animation. Our story and production processes are derivatives of the Walt Disney `school' of animated filmmaking," said Dr. Catmull. "Just like the Disney classics, Pixar's films are made for family audiences the world over and, most importantly, for the child in everyone. We can think of nothing better for us than to continue to make great movies with Disney."
The acquisition brings to Disney Pixar’s talented team, which will be involved in the nurturing and future development of Pixar properties, including potential feature animation sequels, which Disney prepared to make on its own in-house, commencing with a proposed TOY STORY 3 feature.
"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," said 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."
"The wonderfully productive 15-year partnership that exists between Disney and Pixar provides a strong foundation that embodies our collective spirit of creativity and imagination," said Cook. "Under this new, strengthened animation unit, we expect to continue to grow and flourish."
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