Surprises

by Mike Masnick




Pixar And Disney Part Ways

from the wow dept

While there were rumors a year ago that Steve Jobs was looking to get back at Michael Eisner's trashing of Apple's "Rip, Mix, Burn" campaign by signing a deal with some other studio once Pixar's deal was up, most people thought they'd patch up their differences and keep going. Looks like that's not the case. Steve Jobs announced today that talks between Pixar and Disney have broken down, and Pixar will be looking for a new movie studio to work with. This isn't such a big deal for Pixar, but could be even more trouble for Disney (who's having plenty of trouble already).

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  1. identicon
    John O'Sullivan, 30 Jan 2004 @ 10:12am

    Re: Save Disney

    I think Disney killed the goose that laid the golden egg. We know Jobs is someone who carries grudges, but that isn't the whole story here. More significant from a business point of view was a disagreement between Pixar and Disney about what constitutes a film. The original deal was for 5 pictures. Disney argued that Toy Story 2 was not separate picture because it was a sequel. Uhhh, right. That's why I didn't have to pay to see it, because I'd already paid to see Toy Story 1. Sure thing Mr. Eisner.

    The industry rumors are that this point killed the deal. Jobs & company went so sour on Disney that Eisner would have had to pay far more than anyone else to hold on to the business. Mr. Eisner's ego being what it is, he apparently feels Disney is the primary partner in the deal, that Pixar should consider themselves lucky to enjoy Disney's patronage and that they could never do as well elsewhere. I guess we will find out.

    This could actually be the final nail in Eisner's coffin at Disney. There is a lot of unhappiness with the latter part of his rule there. Losing the one bright-light money-machine Disney has left will not sit well with the analysts and institutional investors. Had he retired five years ago, he would have joined the Pantheon as one of America's greatest-ever corporate leaders. Now it looks like he will die the death of a thousand cuts. And Mr. Jobs, as ever, will be delighted to do his part.

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