Disney Pixar Talks Likely to Stretch to 2006

Just how long does it take to come to terms on a distribution agreement. You make and come to agreement on the basic deal points in a week, you haggle out the last few annoying issues over another couple of weeks. Each side’s lawyers spends no less than $40,000 worth of billable hours working on a contract (that should be mostly boiler plate stuff but is written from scratch because it’s better for the law firm that way). The whole thing shouldn’t take longer than 60 days really.

So why are Disney and Pixar still negotiating. Obviously (to me) there must be something more than just a distribution agreement in the works here, and I’m not alone in that suspicion. The Pittsburgh Post-Gazette agrees, saying that while the general consensus is that the two sides are just working on a standard distribution agreement…

There is another, more fanciful, theory buoying Pixar’s share price,
though: Disney could buy Pixar and make it, in effect, Disney’s
animated-film division. That idea has been floated in recent research
reports, including several by Credit Suisse First Boston analyst
William Drewry, who doesn’t own any Pixar shares and has an outperform
rating on the stock. Mr. Drewry further speculated that Pixar’s chief
executive, Steve Jobs, could become a member of the Disney board and a
significant shareholder in the media giant.

Personally I’d love to see Steve Jobs on the Disney board. Heck, I’d like to see him as CEO. Steve understands that a strong brand isn’t enough. You also need a strong product, high quality, and loyalty to your consumers.

The line to get on the Steve Jobs for Disney CEO bandwagon forms here. Or not. You’re choice.