Disney to buy Pixar, which is...
Disney to buy Pixar, which is...
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srebbe64

Original Poster:

13,021 posts

267 months

Friday 20th January 2006
quotequote all
...a victory for common sense! As a Disney shareholder, this is about the first bit of good news since Eisner was given the elbow.

In mt view, Pixar singlehandedly kept Disney's head above water over the last 8 years. And what did Eisner do? He fell out with them. Idiot! Anyway, Disney are now set to buy them, which can only be a good thing for Disney movies, and, more to the point, my shares!

tinman0

18,231 posts

270 months

Friday 20th January 2006
quotequote all
how much is jobs making from this? or did he sell out years ago?

mybrainhurts

90,809 posts

285 months

Friday 20th January 2006
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And does he drive a diesel....?

thebluemonkey

1,296 posts

270 months

Friday 20th January 2006
quotequote all
tinman0 said:
how much is jobs making from this? or did he sell out years ago?


I believe that he still has a major interest in Pixar and he is the CEO. I don't think this will be his idea though.

srebbe64

Original Poster:

13,021 posts

267 months

Friday 20th January 2006
quotequote all
I've no doubt a number of people will make a few bob out of it (I hope I'm one of them!), but I do reckon it's a case of 1 + 1 = 3, the sign of any good deal.

tinman0

18,231 posts

270 months

Friday 20th January 2006
quotequote all
doesn't pixar have a 7 film deal with disney that has 2 films to run? iirc (although i could be very wrong) everyone is looking beyond the 7th film and where disney goes - which would be no where fast and that pixar wanted more considering they are the powerhouse behind that little party.

Jaglover

46,826 posts

265 months

Friday 20th January 2006
quotequote all
srebbe64 said:
...a victory for common sense! As a Disney shareholder, this is about the first bit of good news since Eisner was given the elbow.

In mt view, Pixar singlehandedly kept Disney's head above water over the last 8 years. And what did Eisner do? He fell out with them. Idiot! Anyway, Disney are now set to buy them, which can only be a good thing for Disney movies, and, more to the point, my shares!


Yes indeed, they should have never fallen out with them in the first place. The only decent animated films Disney have released for years are Pixar ones.

Whether it is a good deal or not does depend on the price though Srebbe, it is possible to overpay.

srebbe64

Original Poster:

13,021 posts

267 months

Friday 20th January 2006
quotequote all
Jaglover said:

Whether it is a good deal or not does depend on the price though Srebbe, it is possible to overpay.

Aah yes - welcome to my world! I could waffle on for hours about company valuations. In this case Disney NEEDED Pixar, and you can be sure that Pixar knew that. As such, a company is worth what anyone's prepared to pay, and needing something is simply 'wanting it badly'. As such, Disney paid a premium! That said, it was still the right decision in my opinion!

GMan 2112

182 posts

265 months

Friday 20th January 2006
quotequote all
thebluemonkey said:
tinman0 said:
how much is jobs making from this? or did he sell out years ago?


I believe that he still has a major interest in Pixar and he is the CEO. I don't think this will be his idea though.


Disney are lookin to pay around $6.8b, making jJbs around $3.4b (probably as Disney stock).
Word is that his heart lies in Silicon Valley rather than Hollywood, and he is looking to cash out whilst at the top.

Just hoping Disney don't up a good company.




Jaglover

46,826 posts

265 months

Friday 20th January 2006
quotequote all
GMan 2112 said:

Just hoping Disney don't up a good company.



Indeed

let us hope Disney have no creative control, because they no longer have any creativity.

greenie

1,851 posts

271 months

Saturday 21st January 2006
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This deal is all very well but I will never forgive Disney for Jungle Box 2! How could they.

Seriously I suspect that Disney will be pushing to make Monsters Inc 2 (Randal's Revenge), Nemo 2 (On the Rocks) and definately Incredibles 2 (The diet years) which would be a shame as with the exception of Toy Story Pixar have put originality above dollars with great sucess (ironically with financial as well as artistic sucess).

Can we trust a studio that made Peter Pan 2, Cinderella 2, Lady & the Tramp 2, Two 2 and Pretty much anything else 2.

I'm sure Jobs has tried to tie up his control over the projects but I wouldn't be surprised if he left within 18 months in some sort of hissy fit and let the sequels begin.

Jaglover

46,826 posts

265 months

Saturday 21st January 2006
quotequote all
greenie said:
This deal is all very well but I will never forgive Disney for Jungle Box 2! How could they.

Seriously I suspect that Disney will be pushing to make Monsters Inc 2 (Randal's Revenge), Nemo 2 (On the Rocks) and definately Incredibles 2 (The diet years) which would be a shame as with the exception of Toy Story Pixar have put originality above dollars with great sucess (ironically with financial as well as artistic sucess).


Sequels are not neccessarily a bad thing. I consider Toy Story 2 to be the better of the two.

It all depends on whether Pixar or Disney have creative control.

alfaman

6,416 posts

264 months

Saturday 21st January 2006
quotequote all
Srebbe, .... from my M&A experience within industry I'd say that about 95% of acquisitions heavily destroy shareholder value for the acquiring company ........sad but true.

Basically because the main driver for many acquirers is a "bigger train set" and ego-massage for the CEO.... ... and hence justification for a substantial salary boost.

( I have personally seen a business pay about £225m for an acquisition which was *actually* worth about £50m for its cashflow and assets - pretty typical I'd say)

( and directors write-off about £1bn of bad-debt( major bank) , get sacked and walk into the sunset with a £5m "farewell" .....but thats another story )

srebbe64

Original Poster:

13,021 posts

267 months

Saturday 21st January 2006
quotequote all
alfaman said:
Srebbe, .... from my M&A experience within industry I'd say that about 95% of acquisitions heavily destroy shareholder value for the acquiring company ........sad but true.

Basically because the main driver for many acquirers is a "bigger train set" and ego-massage for the CEO.... ... and hence justification for a substantial salary boost.

( I have personally seen a business pay about £225m for an acquisition which was *actually* worth about £50m for its cashflow and assets - pretty typical I'd say)

( and directors write-off about £1bn of bad-debt( major bank) , get sacked and walk into the sunset with a £5m "farewell" .....but thats another story )


I'm in the M&A business - my company does about 1 deal per week. I don't think 95% of acquisitions destroy shareholder value in the aquiring company - in fat I know it's not true. Sure there are good and bad deals, a good deal, as I mentioned above, means 1 + 1 = 3. It is my opinion that the Disney / Pixar acquisition is one such deal. However, time will tell.

alfaman

6,416 posts

264 months

Saturday 21st January 2006
quotequote all
srebbe64 said:
alfaman said:
Srebbe, .... from my M&A experience within industry I'd say that about 95% of acquisitions heavily destroy shareholder value for the acquiring company ........sad but true.

Basically because the main driver for many acquirers is a "bigger train set" and ego-massage for the CEO.... ... and hence justification for a substantial salary boost.

( I have personally seen a business pay about £225m for an acquisition which was *actually* worth about £50m for its cashflow and assets - pretty typical I'd say)

( and directors write-off about £1bn of bad-debt( major bank) , get sacked and walk into the sunset with a £5m "farewell" .....but thats another story )


I'm in the M&A business - my company does about 1 deal per week. I don't think 95% of acquisitions destroy shareholder value in the aquiring company - in fat I know it's not true. Sure there are good and bad deals, a good deal, as I mentioned above, means 1 + 1 = 3. It is my opinion that the Disney / Pixar acquisition is one such deal. However, time will tell.


Is the Disney deal a merger or an acq. ? - makes a bid difference to value creation.

I think there may be a difference between large corporates buying listed Co.'s at a huge premiums ( and ridiculous P/E's ) and smaller mergers / acqn's when the acquired business may still have a lot of growth and value potential, or can be grafted onto the acquirer with very little additional overhead..

Many of the so-called "synergies" in big multi £bn deals amount to very little ....... TimeWarner / AOL? Vodafone/Mannesman ?


>> Edited by alfaman on Saturday 21st January 16:21