Originally posted by Anders
[B]I was not talking about Jobs vs. rest of Pixars owners. I was talking about Pixar vs. Disney.
I see it all the time: If a player want to get into a marked, secure a marked or in any other way see a strategic point in having the control of a company he will bid up the price of the stock until he has secured themselves the decisive part of that company.
That only works is there is more than one bidder. No one else came out at the last minute to make an offer. Therefore Jobs could have asked for more than Disney wanted to pay, and the deal would have been off. If that happened, Pixar's stock would have tumbled. Then Disney, or another, could have come in with a lowball bid, and picked the company up as a bargin. By the way, the price was a bit higher. Remember, those numbers we were seeing were just guesses.
If Pixar is a strategic good buy for Disney Pixars owners could have gotten a better deal IF NOT they had problems of their own. Which they have: Without this deal they were without a good distributer AND faced competition from sequals to their own box office successes. they would have huge problems selling the next movie:
Lets say their deal with Disney had ended now and they were to roll out Cars this summer with a new distributer against the new "Nemo II" or "Monster, Inc II", backed by Marlins, Nemos, Mikes and Sullies in every kid meal at McD, cheap DVDs of the first movie in every supermarked and a trailer in every commercial block. Who would win do you think? Disney may or may not win at the box office. Pixar would certainly not.
That argument is wrong. First of all, their partnership includes Cars, Pixar could not wiggle out of it.
I'm not quite sure I understand what you are saying here. As I pointed out, Cars is a co-Disney production. Pixar can't do anything about that. The next picture Pixar is doing (I forget the name) is about a rat living in Paris. That wont be out for a year after Cars.
Many companies would be delighted to distribute Pixars films. They all have big marketing budgets. Time-Warner has been mentioned as one that is interested.
Jobs knows that and he had to find a deal with Disney. DIsney, even if they are having problems, are not so dependent on this deal as Pixar. Hence Disney has the upper hand in deciding the price of the buy-out.
The fit between Pixar and Disney is the best, but it wouldn't have been the only one. What you are saying goes against what those in the industry have been saying. Disney needs this more than Pixar does. That's why they want to buy them out completely; so that no other company gets the chance.
I'm not so sure that it will be a good one for Apple, though.