iDisney: Jobs With Mouse Ears

12 Comments

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 …”

12 Comments

sonya foster

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mark

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.

Vic

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.

Shakir Razak

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

Charlie Sierra

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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