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Pixar And Disney Together Again

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After a well-publicized break in negotiations between the animation studio and the entertainment company, talks may start again.

Pixar wanted a lot more out of their deal with Disney, and Steve Jobs wasn’t afraid to ask Michael Eisner for it.

Right now and through the summer 2006 release of Pixar’s next film “Cars,” Disney pays half of Pixar’s production costs. Pixar receives half the revenues as well as a 12.5% distribution fee from Disney.

Negotiations to continue the very successful partnership, where Pixar makes movies and Disney distributes them, fell apart as both sides dug in and refused to budge.

That was four months ago, and in an industry where a day can be an eternity, the two companies have had time to calm down and rethink their positions.

One big change is that of Robert Iger replacing Mr. Eisner as Disney’s CEO. Mr. Jobs had positive things to say about Mr. Iger during a conference call with investors.

Dick Cook, Disney’s studio chief, likewise had warm words for Mr. Jobs and Pixar.

The maker of “The Incredibles” and several other computer animated films have done $2.5 billion USD in ticket sales worldwide.

Pixar has received a lot of attention in Hollywood from other companies desiring to replace Disney as distributor, a bit of leverage that should garner Pixar a more favorable deal from Disney as talks resume.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.

Pixar And Disney Together Again
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