Tuesday, January 24, 2006

Disney takeover of Pixar

It has just been confirmed that Disney will buy Pixar for $7.4 billion. Steve Jobs (yes, that Steve Jobs) founded Pixar in the 1980s, and it has now become the leader in computer animation, with films such as the Toy Story franchise and Finding Nemo. These have been produced with funding and distribution from Disney, and since Disney stopped producing old-fashioned cartoon films a few years ago, many have seen this takeover as making good business sense, if not inevitable.

All this means that Jobs pockets a good few billion bucks, but it does have possibly more important repercussions for the film and digital media industries. Some Pixar content is already available on iTunes for purchase and transfer to the 5G iPod, but Jobs will almost certainly use his place on the Disney board to argue for Disney blockbusters to be added to the collection, which would give a significant boost to iTunes and also encourage other studios to follow suit.

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