Walt Disneyis in serious discussions about a potential takeover of Pixar, according to a report in the Wall Street Journal.
The deal is said by the reports to mean that Pixar - and Apple - CEO Steve Jobs would become Disney's largestindividual shareholder.
The twocompanies have worked together for more than 12 years with Disney acting as Pixar's distributor and co-financer.
Two years ago Jobs was looking for a new distribution partner when his contract with Disneywas up, because of disagreements with Disney's then chief executiveMichael Eisner.
Robert Iger, Disney's current chiefexecutive as of October 2005 is keen to cement relationships with Pixar and thus secure access to future successful animationfilms.
Wall Streetreacted well to the news, Pixars share were up $3.24or 5.7% to $60.50. Jobs is the majorityshare holder of Pixar, with more than 60 millionshares, at its current share price, his stake is now worth around $3.44bn.
Links
Reuters
Pixar, Disney deal could change digital landscapeclick here.
Business Week
Will Steve Jobs Be Disney's Big Cheese' click here
Pixar Gains After WSJ Report of Disney Takeover Talks click here.
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