Jobs' stake in Disney valued at $4B

Posted:
in General Discussion edited January 2014
Apple Computer chief executive Steve Jobs was awarded shares of The Walt Disney Co. worth over $4 billion on May 5th, the day Disney's acquisition of Jobs' other company Pixar Animation Studios went into effect.



Disney's purchase of Pixar for $7.4 billion in stock was completed Friday, with Pixar shareholders receiving 2.3 shares of Disney stock in exchange for each of their Pixar shares.



Mr. Jobs, who owned 50.6 percent of Pixar, agreed earlier this year to vote 40 percent of those shares in favor of the merger.



According to a filing with the Securities and Exchange commission, Mr. Jobs traded in 60 million shares of Pixar for 138 million shares Disney, making him the entertainment conglomerates largest shareholder with 6.3 percent of Disney's outstanding stock.



At market value on the day the merger went into effect, those shares were worth more than $4 billion.



During Apple's annual shareholders meeting last month, Mr. Jobs said the sale of Pixar to Disney would allow him to spend more time at Apple.



As part of the deal, Mr. Jobs was elected a seat on Disney's Board of Directors.

Comments

  • Reply 1 of 20
    chris cuillachris cuilla Posts: 4,825member
    Can someone that knows about this kind of thing explain this to me:



    Quote:

    Originally posted by AppleInsider

    Mr. Jobs, who owned 50.6 percent of Pixar, agreed earlier this year to vote 40 percent of those shares in favor of the merger.



  • Reply 2 of 20
    kickahakickaha Posts: 8,760member
    Well, he could have single-handedly decided it as majority shareholder, but elected not to. Instead, he said "Okay, if you can get another 10% voting yes, we'll do this. I'm 80% sure we should do this, so I'll vote 80% of my stock, resulting in 40%... but I won't be the only voice."
  • Reply 3 of 20
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by Kickaha

    Well, he could have single-handedly decided it as majority shareholder, but elected not to. Instead, he said "Okay, if you can get another 10% voting yes, we'll do this. I'm 80% sure we should do this, so I'll vote 80% of my stock, resulting in 40%... but I won't be the only voice."



    OK. That makes a lot of sense. Very cool of him. Wise too. Maybe Steve isn't the nutjob some folks make him out to be.



    Thanks.

  • Reply 4 of 20
    kickahakickaha Posts: 8,760member
    Or, y'know, it could have been the rest of the shareholders threatening a lawsuit against him if he pulled rank...
  • Reply 5 of 20
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by Kickaha

    Or, y'know, it could have been the rest of the shareholders threatening a lawsuit against him if he pulled rank...



    Is it your job to find the "cloud" around my "silver lining"?







    ( P.S. You could be right...though I suspect he wanted to be sure that some key internal shareholders were on board...and maybe so did Disney. )
  • Reply 6 of 20
    kickahakickaha Posts: 8,760member
    Quote:

    Originally posted by Chris Cuilla

    Is it your job to find the "cloud" around my "silver lining"?







    ( P.S. You could be right...though I suspect he wanted to be sure that some key internal shareholders were on board...and maybe so did Disney. )




    Yes, that would be my guess as well. Prudent in this situation, and simply good business sense.



    However, if I didn't slam on Jobs, you know some troll would wander in here and claim we're all apologists, blah blah blah. Meh. Head them off at the pass.
  • Reply 7 of 20
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by Kickaha

    However, if I didn't slam on Jobs, you know some troll would wander in here and claim we're all apologists, blah blah blah. Meh. Head them off at the pass.



    Shrewd tactical move.
  • Reply 8 of 20
    sandausandau Posts: 1,230member
    <sniff> <sniff> <sniff> <sniff>



    something smells funny in here, someone wearing perfume?
  • Reply 9 of 20
    Any other NPR nerds here? MarketPlace is already asserting that Jobs is having a strong influence at Disney. The story yesterday was that Disney and McDonalds have ended their exclusive agreement to put Disney-movie-themed toys in Happy Meals. They quickly made the suggestion that Steve, a northern-California, non-fast-food-eating hippie was a major force in the decision. (Not using hippie in a derogatory manner, and not saying I didn't make the short leap to that conclusion as well.

    ___



    Kickaha: Slightly OT, but it I think the blurb is actually worded to mean that Jobs voted 40% of his shares, or about 20% of Pixar, Yes. Whether the submitter intended this to be the meaning or not, I don't know - I haven't taken the time to verify the numbers.
  • Reply 10 of 20
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by CrazyWingman

    MarketPlace is already asserting that Jobs is having a strong influence at Disney. The story yesterday was that Disney and McDonalds have ended their exclusive agreement to put Disney-movie-themed toys in Happy Meals. They quickly made the suggestion that Steve, a northern-California, non-fast-food-eating hippie was a major force in the decision.



    Hmmm...let me see if I have this right...two multi-billion dollar corporations have decided to end their marketing agreement because one of their shareholder/border members is a vegan and (essentially) offended by McD's food?



    That seems like a dubious conclusion. I'm not saying it isn't true that Steve was a factor in the decision. Maybe he was...maybe not too. But if he was, it seems more likely that there might be some other business-related reasoning.
  • Reply 11 of 20
    jeffdmjeffdm Posts: 12,949member
    Quote:

    Originally posted by Kickaha

    Well, he could have single-handedly decided it as majority shareholder, but elected not to. Instead, he said "Okay, if you can get another 10% voting yes, we'll do this. I'm 80% sure we should do this, so I'll vote 80% of my stock, resulting in 40%... but I won't be the only voice."



    I agree with CrazyWingman, if that previous quote is correct, it is more like 40% of 50% is 20% of the total number of votes. So the rest of the owners would have to vote more than 60% of their share-votes in favor.
  • Reply 12 of 20
    kickahakickaha Posts: 8,760member
    You know, I thought about adding a disclaimer that given the initial information, it was unclear which amount was 'correct', but I figured I'd just be wasting my time, because of *course* anyone else could also see that what I was stating was sheer speculation and not a statement of reality, based on a vague and imprecise initial piece of data with multiple interpretations... sheesh.
  • Reply 13 of 20
    addaboxaddabox Posts: 12,660member
    I'm glad about the McDonald's decision.



    As a fan of Pixar, I hate to see the characters cheapened with those saturation tie-in deals for something as grim as a happy meal (actually, I hate to see the characters cheapened by any tie-in deal, but I realize there is precious little chance of Disney pulling out of most of them).



    Although Jobs probably didn't bring this on all by his lonesome, I bet he pushed a conversation regarding just how cool it is to associate your brand with a fast food joint in an era of increasing awareness of skyrocketing rates of childhood obesity and diabetes (let alone adult obesity and diabetes).



    I'm guessing that more and more kid oriented businesses will begin to eschew fast food tie-ins as public attitude starts to shift. Disney's just slightly ahead of the curve.
  • Reply 14 of 20
    chris cuillachris cuilla Posts: 4,825member
    Quote:

    Originally posted by addabox

    Although Jobs probably didn't bring this on all by his lonesome, I bet he pushed a conversation regarding just how cool it is to associate your brand with a fast food joint in an era of increasing awareness of skyrocketing rates of childhood obesity and diabetes (let alone adult obesity and diabetes).



    I'm guessing that more and more kid oriented businesses will begin to eschew fast food tie-ins as public attitude starts to shift. Disney's just slightly ahead of the curve.




    This makes a bit more sense (and, perhaps, driven by his own dietary predilections too). Of course if they hook up with Burger King or Taco Bell/KFC next we'll be wrong.



    EDIT: Now I'm getting hungry.

  • Reply 15 of 20
    addaboxaddabox Posts: 12,660member
    Quote:

    Originally posted by Chris Cuilla

    This makes a bit more sense (and, perhaps, driven by his own dietary predilections too). Of course if they hook up with Burger King or Taco Bell/KFC next we'll be wrong.



    EDIT: Now I'm getting hungry.




    I might actually like to see the BK tie-in ads, insofar as BK seems to have gone freaking insane. Waking up with a dude in a king mask sitting on your bed? WTF?
  • Reply 16 of 20
    brussellbrussell Posts: 9,812member
    Quote:

    Originally posted by Kickaha

    You know, I thought about adding a disclaimer that given the initial information, it was unclear which amount was 'correct', but I figured I'd just be wasting my time, because of *course* anyone else could also see that what I was stating was sheer speculation and not a statement of reality, based on a vague and imprecise initial piece of data with multiple interpretations... sheesh.



    Bit defensive?



    On the McDonalds thing:
    Quote:

    Responding to questions about the story, Daly said the decision to break off exclusivity was "mutual" and decided upon nearly two years ago. Last summer McDonald's disclosed that it would not renew the pact when it expires at the end of the year. At that time it will team up with DreamWorks Animation in a two-year deal but will continue to promote other Disney films, the company said.



  • Reply 17 of 20
    sunilramansunilraman Posts: 8,133member
    Originally posted by Kickaha

    ...However, if I didn't slam on Jobs, you know some troll would wander in here and claim we're all apologists, blah blah blah. Meh. Head them off at the pass...




    Ah, you're all a bunch of Mac-fanatic hippie Steve-Jobs-is-GOD-worshipping Apple-can-do-no-wrong pansies...!!! Windows Vista "Aero Glass" will whip OS X's interface any day...!!!
  • Reply 18 of 20
    sunilramansunilraman Posts: 8,133member
    Originally posted by Chris Cuilla

    EDIT: Now I'm getting hungry.




    mmmm... A whopper would be sinfully delicious for dinner Heh. But the mentioning of diabetes and obesity and stuff is keeping my desire for fast-food-right-now at bay \
  • Reply 19 of 20
    sunilramansunilraman Posts: 8,133member
    Originally posted by addabox

    I might actually like to see the BK tie-in ads, insofar as BK seems to have gone freaking insane. Waking up with a dude in a king mask sitting on your bed? WTF?




    I'm not in the US right now but that sounds a little like a ripoff of Jack-In-The-Box ads?



    PS. Addabox the past week my bipolar actually under control. Phew. On Lamictal, Seroquel, Cipram, Rivotril......
  • Reply 20 of 20
    chris cuillachris cuilla Posts: 4,825member
    This article has a bit more information.



    Quote:

    Mr Jobs said during a conference call: "There is value in fast-food tie-ins. But there are also some concerns, as our society becomes more conscious of some of the implications of fast food."



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