Steve Jobs
© AFP/Getty Images/File Justin Sullivan LOS ANGELES (AFP) - Pixar is the San Francisco-area studio behind hits such as 2004's "The Incredibles," 2003's underwater adventure "Finding Nemo," 1995's "Toy Story," "A Bug's Life" from 1998 and this year's "Cars."
Burbank, California-based Disney agreed to acquire Emeryville-based Pixar in an all-stock transaction expected to be completed by summer, Disney president Robert Iger said in a statement.
"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," Iger said.
"The addition of Pixar significantly enhances Disney animation, which is a critical engine for driving growth across our businesses."
Apple Computer co-founder Steve Jobs, chairman and chief executive at Pixar, will join Disney's board of directors under the blockbuster deal.
Pixar head Ed Catmull was designated president and John Lasseter chief creative officer of a combined Pixar and Disney Animation Studios.
The Pixar logo is seen at the main gate of Pixar Animation Studios
© AFP/Getty Images/File Justin SullivanThe famed Disney-Pixar relationship looked to be over when Jobs announced two years ago that his groundbreaking company would seek a distribution deal elsewhere, pulling out of its lucrative alliance with Disney.
The tie-up had created a perfect record of six blockbuster hits out of six productions, so Jobs announcement sent Disney into a panic over the future its own struggling animation unit, partly putting pressure on Disney's longtime chief executive Michael Eisner to step down last year.
The storied alliance led to Pixar employees winning 15 Academy Awards and making nearly three billion dollars at the box office.
But talks to renew the deal broke off in 2004 over Eisner's reported refusal to accede to Jobs' demand for a bigger share in profits.
Industry experts said the deal announced on Tuesday will make Jobs the largest single stockholder in Disney.
"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," Jobs said in a statement.
"Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."
Pixar's collaborative culture of innovation "has its roots in Disney," according to Catmull.
"Our story and production processes are derivatives of the Walt Disney 'school' of animated filmmaking," said Catmull.
Bob Iger
© AFP/Getty Images/File Matthew Simmons "Just like the Disney classics, Pixar's films are made for family audiences the world over and, most importantly, for the child in everyone."
Disney and Pixar animation units will retain their current operations and locations, according to Iger.
"For many of us at Pixar, it was the magic of Disney that influenced us to pursue our dreams of becoming animators, artists, storytellers and filmmakers," said Lasseter.
"We have created our films in the manner inspired by Walt Disney and the great Disney animators. It is exciting to continue in this tradition with Disney, the studio that started it all."
Disney will capitalize on Pixar-created characters and franchises in video games as well as real-world arenas including theme parks, consumer products and live stage plays, the company said.
"The wonderfully productive 15-year partnership between Disney and Pixar provides a strong foundation that embodies our collective spirit of creativity and imagination," said Disney chairman Dick Cook. "Under this new, strengthened animation unit, we expect to continue to grow and flourish."
The unison of Pixar and Disney threatens to be a bane for animated film competitor Dreamworks, according to market analysts.
A Credit Suisse investment report released last week described a Disney acquisition of Pixar as "a good deal for both companies."
Pixar would become Disney's "de facto" animation film division, and having Jobs on the board would add "a strong technology visionary" to Disney, the report predicted.
Disney stock ended Tuesday up nearly 2 percent while Pixar's stock price dipped slightly more than one percent.
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