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Wednesday, January 25, 2006
Disney Buys Pixar for $7.4 Billion


The Walt Disney Company has agreed to acquire Pixar, the animation studio headed by Apple Computer chief Steve Jobs, in a long-anticipated $7.4 billion deal that will put Jobs on Disney's board of directors, the companies announced Tuesday.

Pixar, based in Emeryville, California, has parlayed its digital animation expertise and distribution partnerships with Disney into a string of blockbuster hits since 1995, including Toy Story, Monsters Inc., Finding Nemo and The Incredibles.

Jobs, CEO and a co-founder of Apple, also co-founded Pixar in 1986. He is chairman and CEO at the studio and owns approximately 50.6 per cent of the outstanding shares of Pixar, according to a press release issued by Disney and Pixar Tuesday.

The boards of both companies have approved the acquisition but it still needs shareholder and regulatory approval. The companies said they expect the acquisition to close in the summer, which in North America typically means June, July and August.


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