Disney and Pixar part ways
Jan. 29, 2004

Nintendo and RareWare. Sonny and Cher. Hulk Hogan and Vince McMahon. It seems all famous duos eventually part ways. So should it come as a complete shock that Disney and Pixar are ending their relationship?

"After ten months of trying to strike a deal with Disney, we're moving on," Pixar CEO Steve Jobs said in a statement. "We've had a great run together—one of the most successful in Hollywood history—and it's a shame that Disney won't be participating in Pixar's future successes."

Although the thought of Disney and Pixar ending their long relationship had been discussed as far back as two years ago, the general consensus was that the two would reach some sort of agreement to extend its current contract. But with Pixar seeking more money due to its growing significance with widely successful films such as Monsters, Inc. and Finding Nemo, the two sides were far apart on monetary issues. Under the current contract, Disney handles distribution and marketing, and Pixar, in turn, splits profits with Disney, paying the studio a distribution fee of between 10 and 15 percent.

CNN reports that Disney said Pixar's final offer would have cost Disney hundreds of millions of dollars from the existing distribution deal.

Disney CEO Michael Eisner said in a statement, "Although we would have enjoyed continuing our successful collaboration under mutually acceptable terms, Pixar understandably has chosen to go its own way to grow as an independent company."

That's not stopping other studios from trying to pair off with Pixar. Warner Bros. has already expressed interest, but there have been no formal talks. DreamWorks—the studio behind Shrek and its upcoming sequel—may also show interest.

Where does Disney go from here? Pixar, judging from every movie the studio has put out, is going to be just fine. It's Disney that's struggled with its own animated films and may end up on the losing end. Under the current deal, Pixar still owes Disney two movies (this year's The Incredibles and next year's Cars), and Disney itself owns the rights to all of the Pixar movies, meaning it can create its own sequels.

Roy Disney and Stanley Gold, who recently resigned from Disney, place the blame on the failed talks between the companies with Eisner.

"More than a year ago, we warned the Disney board that we believed Michael Eisner was mismanaging the Pixar partnership and expressed our concern that the relationship was in jeopardy," they said.

Some still think Pixar's announcement that it has ended talks with Disney may be a negotiating tactic, leveraging for bigger bank. Either way, the situation will be interesting to follow in the coming months.

Check back on Animated Buzz and the Buzz-Wire for all of the latest news.

Chris Douvalas
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