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Disney to Decide on Pixar Buy Out

Disney to Decide on Pixar Buy Out

by , 8:10 AM EST, January 23rd, 2006

Disney's board of directors will discuss their options for the future of Steve Job's other company, Pixar, in a regularly scheduled meeting on Monday. According to MarketWatch, there are several options available, ranging from a full buy out and take over, to purchasing a smaller stake in the animation company.

One of the options on the table has Disney purchasing Pixar, valued at around US$7 billion, and giving Steve Jobs enough Disney stock to make him the single largest individual share holder.

The proposed deal with Pixar does not involve Apple Computer. Despite the fact that Steve Jobs is CEO of both Apple and Pixar, the two companies are not tied together. Disney does, however, have other ties with Apple. It sells video programming through the iTunes Music Store (iTMS), including animated shorts from Pixar. ABC, a subsidiary of Disney, also sells some of its shows through the iTMS.

That division, according to the Wall Street Journal, could occasionally put Mr. Jobs in an awkward position. If he has a more active roll in Disney's affairs, there is the potential that he could make decisions at one company that benefit the other.

Mr. Jobs has historically done a pretty good job of keeping his various business interests segregated. Richard Doherty, an analyst at Envisioneering Group, commented "He knows the boundaries of where you're supposed to operate."

There is no word yet on how a Disney buy out of Pixar would effect the available content at the iTMS.

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