Excellent thought, but what's missing is what is in it for Pixar and Jobs?
1. Pixar would de facto become the film animation division for Disney and that would instantly solve the top priority on Iger's list. Pixar brings very strong and talented management to run this animation franchise and with both companies working so closely for so long, it could be a relatively seamless transition.
I'sn't Pixar already the de facto animation company? Why do they need Disney when there are other distribution outlets?
2. Disney could name Jobs to the Disney board of directors, adding a strong technology visionary to the Disney team.
Why would Jobs want just a seat? He would probably be considered regardless of a Pixar aquisition, but he's probably busy enough as it is. A top position, such as CEO or Chairman, may be more enticing.
3. A merger/acquisition gives the company a larger canvas to create and distribute content across the Disney cable networks, consumer products, and theme parks.
Again, locking Pixar into Disney is a two edge sword, with benefits and limitations, not all together clear beneficial for Pixar.
4. A theoretical purchase price of $60 would work for Disney. In other words, this deal still makes major sense to us.
The deal at $60 probably makes sense for Disney, but again, for Jobs and Pixar, that number is unlikely to be nearly enough. If the companies stay separate, do you want to be holding Pixar stock or Disney stock in 3-5 years? Pixar could be at $120 or more in 3-5 years, where as Disney is far less likely to make those kinds of gains even if they successfully acquired Pixar.
It's a good idea, but coming to a fair price and terms that makes sense to both sides is going to be rough. Disney is offering todays valuation, while Pixar is looking at it's future potential value. |
