Pixar speculation heats up
By Jon Friedman, CBS.MarketWatch.com
Last Update: 4:22 PM ET Feb. 19, 2004
NEW YORK (CBS.MW) -- Pixar Animation Studios' stock surged on heavy volume Thursday amid fresh speculation about the company's talks with prospective distribution or merger partners following its split with longtime ally Walt Disney.
Pixar stock (PIXR: news, chart, profile) closed up $2.30, or 3.5 percent, to $68.11. Shares of Sony rose 76 cents to $42.15.
A report on Briefing.com, an online market news service, cited unconfirmed rumors that Sony (SNE: news, chart, profile) was eyeing a possible acquisition of Pixar, which abruptly broke off distribution negotiations with Disney (DIS: news, chart, profile) on Jan. 29.
Since then, observers from Hollywood to Wall Street have suggested that Pixar of Emeryville, Calif., could choose a partner or a suitor from any number of major studios, including those owned by Time Warner (TWX: news, chart, profile) or Sony. Pixar is an attractive property because it has a reputation for churning out blockbusters, including the "Toy Story" series of films and last year's surprise hit, "Finding Nemo."
On Wednesday, the chief operating officer of Metro-Goldwyn-Mayer (MGM: news, chart, profile) said the company has had talks with Pixar on a possible distribution deal. Pixar officials haven't commented.
MGM shares rose a penny to $17.43.
Walt Disney (DIS: news, chart, profile) President Robert Iger said on CNBC that he doesn't expect his company to re-open negotiations with Pixar. Disney shares rose 29 cents to $27, as Iger said Disney would explore offers for the company.
"A deal has to be in the best interests of our shareholders," he said.
Jon Friedman is media editor for CBS.MarketWatch.com in New York. |
