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Disney buys Pixar in quest for animated renaissance

25/01/2006

Entertainment heavyweight Walt Disney agreed to buy animation studio Pixar yesterday in a deal worth over £4 billion that also nets the makers of Finding Nemo creative control of Disney's cartoon studio.

Under the terms of the all-share agreement, slated to conclude this summer, Disney will issue 2.3 of its shares for each one of Pixar's, making the deal worth $7.4 billion (£4.1 billion).

Pixar's chief executive and major shareholder Steve Jobs, also the perennially black t-shirted boss of computer technology firm Apple, will join the Disney board as part of the deal.

Mr Jobs commented: "Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders.

"Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world," he added.

Disney's distribution deal with Pixar was set to expire at the end of 2006 despite Pixar's score of hit feature length animations. Toy Story, Finding Nemo and The Incredibles together grossed over $3.2 billion worldwide.

Protracted distribution negotiations between the firms broke down last year as a result of friction between then Disney supremo Michael Eisner and Jobs.

However, new Disney boss Robert Iger sought to mend the rift, realising that a strong working relationship with Pixar was essential for Disney's future animated success.

Highly significantly, Mr Iger has agreed to hand over creative control of the firm's legendary cartoon studio, which created Mickey Mouse and film classics like Snow White, to Pixar's creative bosses Ed Catmull and John Lasseter.

Commenting on the purchase, Iger said: "With this transaction we welcome and embrace Pixar's unique culture, which for two decades has fostered some of the most innovative and successful films in history."

Emphasising the importance of animation in the pantheon of Disney businesses Mr Iger said that it was a "critical creative engine for driving growth across our businesses".

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