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Jobs to become Heir Apparent at Disney?

Posted By Barry Ritholtz On December 3, 2003 @ 11:48 pm In Current Affairs,Film,Finance,Media | Comments Disabled

Here’s a Hollywood rumor that keeps popping up from time to time: Disney, in need of tying up Pixar’s soon-to-be-ending contract, offers Steve Jobs a board seat, or even a Senior VP role.

Disney’s cut of their partnership with the animation studio has been extremely lucrative. More than that, the cutting edge animation technology developed by Pixar has kept Disney relevant; Without Pixar, Disney’s star would have fallen much much further than it already has. And, Disney knows that the future direction of animation is Pixar’s specialty, not Disney’s. If that niche of the industry were to fall another studio, it would be disastrous for the Mouse House.

With a market value more than 10X that of its important partner — Disney’s cap stands at $43.99 Billion to Pixar’s $3.81 Billion — DIS should just get it over with and buy PIXR outright. That would resolve the future of the lucrative animation business, and solve the issue of who’s gonna replace Eisner, in one fell swoop.

Eisner, who’s already sucked out over a billion dollars in compensation from the entertainment giant’s coffers over the past decade, could make a graceful exit. The alternative may be an ugly ego driven battle with the company’s largest shareholders (Walt’s heirs) that would make Carly Fiorina’s battles with the Hewlett heirs look like a mah-jong scrum.

Here’s the gossipy NYPost’s take on the matter:

As far as the entertainment industry and Wall Street would be concerned, the most welcome second-in-charge and nominal successor to Eisner could be none other than Steven Paul Jobs – head of Apple Computer and Pixar, and the guy who currently has Disney over one massive barrel.

“That one’s been around for a while,” says a Disney spokesperson. Indeed. But sources out in the land of warmth say speculation that the Disney Co. would be forced to offer Jobs a position – if only a seat on the board – intensified this week, as soon as Roy Disney’s keister had cleared the company parking lot.

But there are problems, naturally. For one thing, Eisner apparently doesn’t much like Jobs, either. And the famously independent Jobs, who founded Apple Computer in his family’s garage, apparently has been returning the dislike ever since Eisner accused Apple in Washington of abetting video piracy.

Now for the final twist: Disney right now is in the middle of renegotiating a very important movie production deal with Jobs’ Pixar, an animation studio that made a bundle for Disney with “Finding Nemo” and others even as Disney’s own cartoonists had become a mere caricature of their former selves. And other studios are trying to lure Pixar away. If a new deal with Pixar wasn’t urgent for Eisner before the Roy Disney episode, it certainly is now. And that fact won’t elude Jobs when he sits down to discuss the terms of any new deal.

Can Eisner get along with anyone? Will Roy Disney rescue the family business? Does Jobs want another job? This is reality entertainment.

H’Wood Buzz: Jobs May Fill Seat At Disney [1]
December 4, 2003, NY Post


Disney sets global box office record, courtesy of “Nemo” [2]
Reuters, December 3, 2003


Disney Sets Box-Office Record [3]
By Claudia Eller
L.A. Times, December 4, 2003


Twelve Less Angry Men [4]
By Buzz Johnson
Film Stew, December 4, 2003


Roy E. Disney’s letter [5] to Michael Eisner.


Stanley P. Gold’s letter [6] to Disney’s Board of Directors.


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2003/12/jobs-to-become-heir-apparent-at-disney/

URLs in this post:

[1] H’Wood Buzz: Jobs May Fill Seat At Disney: http://www.nypost.com/business/12500.htm

[2] Disney sets global box office record, courtesy of “Nemo”: http://www.msnbc.com/news/1001006.asp

[3] Disney Sets Box-Office Record: http://www.latimes.com/news/local/politics/cal/la-fi-boxoffice4dec04,1,1251228.story?coll=la-news-politics-california

[4] Twelve Less Angry Men: http://www.filmstew.com/Content/DailyNews/Details.asp?ContentID=7407&Pg=1

[5] letter: http://www.filmstew.com/users/dailynews/royedisney_12032003.asp

[6] letter: http://www.filmstew.com/users/dailynews/stanleypgold_12032003.asp

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