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Pixar-Disney reconciliation pending? - Invester's Business Daily 05/06/05

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  • Pixar-Disney reconciliation pending? - Invester's Business Daily 05/06/05

    Article from Invester's Business Daily - May 6, 2005
    Pixar-Disney reconciliation pending?

    SAN FRANCISCO (MarketWatch) - Pixar Animation Studios shares surged in early trading Friday after Chairman Steve Jobs indicated for the first time since breaking off talks with Walt Disney Co. that an extension of its long-time distribution agreement may be possible.

    Last year, Pixar had broken off talks with Disney (DIS) about an extension of its 10-year relationship with the company, which is set to expire next year.

    "I've had some nice conversations with [Chief Operating Officer] Bob Iger, but we are not yet in any negotiations to strike a new deal with Disney at this time," Jobs said. "We are still waiting to see what happens and we will let you know when something, if something starts to happen."
    "We are encouraged that there is more clarity on timing," said analyst William Drewry. "However, we believe it is unlikely Disney remains the suitor. The companies are too far apart on several issues - the production of sequels now being the biggest."

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