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Summary:

Steve Jobs is one hell of a negotiator it seems. A week ago the news of Disney buying Pixar broke and the price tag was around $6.7 billion. Apparently not. The deal has closed at $7.4 billion. That works out to over $100 million a day […]

Steve Jobs is one hell of a negotiator it seems. A week ago the news of Disney buying Pixar broke and the price tag was around $6.7 billion. Apparently not. The deal has closed at $7.4 billion. That works out to over $100 million a day in prolonged negotiations. I guess now Disney people know how Apple employees feel. Paul La Monica reports that Disney will give 2.3 shares for each Pixar share, about $59.78 a share, or a 4% premium to Pixar’s current stock price. Jobs will also sit on Disney’s board. The deal is getting thumbs up from Wall Street.

Michael Cuggino, a fund manager who owns about 100,000 shares of Disney in the Permanent Portfolio and Permanent Portfolio Aggressive Growth funds … says that the… the addition of Jobs, who will also become Disney’s largest individual shareholder, to Disney’s board could mean that more innovative digital deals could be in the works. “Jobs is a dynamic personality who knows consumer electronics. It’s an opportunity to bring some youthful energetic thinking to Disney’s board.”

May I wish someone calls me youthful and energetic when I am past the half-century mark, which is going to come around in 2017!

Update: Owen Thomas says that for now, Steve is only partially voting in favor of the deal.

Does that mean he’s 10% against the deal? Or does he just want to leave the outcome in doubt until the final moment, creating a Macworld Expo-like moment of suspense? “One more thing …”

  1. Charlie Sierra Tuesday, January 24, 2006

    One very interesting thing to consider is the long rumored iPhone.

    Recall that Disney has TWO MVNO’s with Sprint, MobileESPN (already in soft launch and set for a SuperBowl launch bang) and Disney Mobile (to launch later this year?)

    From Steve’s new position, if and when Apple wants to do an iPhone they now have a clear opportunity without any Carrier meddling.

    Hmmm, just something to think about.

    I mean, do I want to be locked-into VZW or Sextel for $3 song downloads, or how about a killer mac-daddy ESPN superphone with $0.99 iTunes?

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  2. cool picture…

    had a goo laugh

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  3. What’s that word you use Om……is this Disney becoming citric thoughout (apple-ising, ipodding, pixar-ising, et al!) as in the way yahoo has decided to become Flickr-ed.

    $50m => $3.7Bn => Dream Fantasy

    nobody/has-been in ’91, Tech/media-God/turk/whizz with 3 decades experience in 2006

    =================================

    On a financial note, this is such a high-wire act.

    The Valuation of Pixar, by Disney is based on past experience. However, Disney already had all the rights (including 100-year Traemark/Brand rights) to all the Pixar properties.

    That means that Disney will require a 100% successful run-rate for all new releases, while Pixar’s philosophy means on average 1 release every 1 to 2 years – i guess those preview showings and re-edits will have to matter more!

    Disney is making this [the numbers] work by possibly letting Pixars people take charge of Disney’s existing animation division (+ go.com) , and fundementally a very expensive non-executive directorship/consulting job for the wonder that is Steve Jobs.

    It will work, inevitably, but did they really have to pay/dilute so much?

    Yours kindly,

    Shakir Razak

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  4. Steve Jobs gets a new job at Disney

    When it comes to Steve Jobs, most investors and even non-market watchers probably think of a single word: Apple. After all, Apple is the company that Mr. Jobs co-founded in the 1970s, when he was just a cocky twenty-something (as opposed to a cocky fi...
    
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  5. Considering the history with Disney and Pixar, and then birth of Dreamworks, and where everyone is at present, getting into Disney looks like a vindication. Finishing off old business. But it does spell Apple’s foray into content and media. It owns the ears, is trying to own the eyes.

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  6. Great photo! It will be interesting to see how this all pans out.

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  7. I think he’s leaving his other 10.6% as non-voting, so it will need other shareholders to see it through. In other words, he’s not totally dictating the sale.

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  8. DISNEY ACQUISITION OF PIXAR

    Wow. Years ago people thought this deal should have been done with some other movie studios buying out their animation partners, but the timing of this Disney deal with Pixar is in a very different context. iPod’s music and now video distribution powe…

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  9. [...] Forget VoIP, or tele-medicine or distance education. Don’t even think about remote working (like we don’t work enough.) According to Firstmile.US the real reason for broadband is entertainment, and it is a perfect delivery mechanism for anything to “amuse us.” Entertainment is inarguably of economic primacy to Americans. Americans are more than willing to support advertisers and sports stadiums – where sponsors are providing multimillion dollar salaries to those playing games to entertain us. We are more than willing to lavish $20M salaries on A- list film celebrities for their three months of work making a movie to entertain us. We are more than willing to support multiple magazine publications devoted to celebrities to the tune of over $1B annually. We are willing to make gambling on entertainment, both legal and illegal, a multibillion- dollar business. Contrast this with our unwillingness to pay higher taxes to provide better education for our children (a different discussion.) Broadband can provide consumers with more entertainment, in a more convenient way. With appropriate business model changes, entertainment is the killer app that will drive broadband forward and increase the standard of living of Americans still further.Clearly, in niche markets we can see the impact of this. Akimbo is enjoying some modicum of success with its foreign fare. The music sales online are increasing sharply. Hell, MLB.com has been printing money. Yup, there might be some truth to the whole broadband for entertainment theory. See, iDisney gets it! [...]

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  10. [...] A few months back, I had posted that instead of IPTV (the telco version of television streamed to your television), the downloadable television, despite being a dark horse, could upset the whole video ecosystem. And that was before Steve Jobs released video iPod, and did the Pixar deal to get closer to the glitterati. Thomas Nolle, writing for Network World says, “Steve Jobs took a giant step toward making IPTV a non-issue when he announced the Video iPod…..If consumers want portable, personalized, video experiences, will their as-I-want-it attitude carry over into their home-viewing patterns?” [...]

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