They were starting from scratch, which means recreating all the models for the characters so the animation would have been "off." The story was also penned by Disney w/o Pixar involvement. So chances are it would have royally sucked based on their recent track record. Lasseter said that Pixar had/has an idea for 3 but wouldn't do it until a new contract for Pixar was on the table. With Pixar involved chances are higher of all the actors returning.

Exactly. Obviously some people didn't read the same articles. With Iger hands off, I see all Disney animation only getting better.

Anyone else find it ironic that all these guys left Disney to form Pixar and are now back working for the company they left? :lol: I hope everyone at Pixar gets some kind of bonus, not just the big dogs.

I was also thinking of the Apple/Disney angle. iTunes & ABC/Buena Vista/Disney content is a given, but it will be interesting to see what develops in the next few months.

This is interesting to hear. Last I heard Disney and Pixar left on bads terms when the stopped working together on films.

Just found this in today's news....WOW that was unexpected...Maybe jobs can save disney.

Taken from Techweb.com

Well, aren't you the quick study. :lol:

Just read the article. Interesting. For those that haven't read it, to sum it up, Jobs wanted Pixar so he could sell computers and software to other design shops, not for the animation. Which from a buisiness stand point sounds like a decent idea. Pixar/Jobs was in the red for $60 million from the time he purchased until Toy Story came out in 95, about 10 years. He was looking to unload the company since they weren't turning a profit.

The article basically blasts him for not seeing the genius of the animation and the quality of the animated shorts. Hindsight is 20/20. Equal arguements could be made for Lucas & Katzenberg. Lucas who sold Jobs the company and Katzenberg for passing up buying it for $15 million from Lucas before Jobs stepped in.

So the whole article is rather silly, just boils down to "Jobs should have known what he had."

Well, Lucas sold it for one reason and one reason only. Lucas wanted to keep Pixar, but he was going through his divorce about that time and his wife Marcia, got half of his entire wealth. So he was in need of cash.

I think the gist of JHM's article is this. Most have been arguing that the problem with Disney is the suits have been running things and making decisions over the last decade, instead of the creative people. His argument is Jobs is just another suit, and that Pixar was successful in spite of his mismanaging. The funny thing is, Jobs wanted to dump the very thing that made Pixar what it is today, the animation department, because it was so costly. Interesting to say the least.

I had an unusually slow day at work yesterday and I acutally got to read a bit more than I usually do. After about 10-15 posts it kinda stuck out....n00b. ;)

kidding...welcome to the forum

It's interesting to a point, but in the end, Jobs not only kept the animation department, but apparently left them with free reign creatively. There were likely plenty of opportunities to kill Pixar by micromanaging or whatnot even in the aftermath of Toy Story's big success, but, Jobs was apparently largely hands-off in terms of the creative.

Jobs may be a suit, but with Pixar, at least, he let the creatives be creative. And that's something that Disney could probably use.

But they need people like Lasseter far more than they need Jobs.

That's certainly true, but the point was that because Jobs let Lasseter be Lasseter, he's a better kind of suit than what Disney has apparently had of late.

Certainly if your creative people suck, giving them free reign won't make for good, successful movies.

The wording leads me to wonder if this is bogus or not. I see that a lot of news organizations are carrying this story, but remember the Disney - Pixar merger will not be completed until the summer. I don't think Lasseter and Catmill are employees of Disney yet and hold any power to make these decisions.

Can somebody who knows about buyouts or mergers of companies confirm or deny that?

Chris

I just caught up reading this thread. I believe this is the beginning of the end of the greatness of Pixar.

I think this is GREAT news for all involved. Disney has effectively re-started it's animation group with the leader of CGI animation. You can argue all day about Jobs, but I think he will be a awesome addition to Disney and it's board.

Great News.

Is that because di$ney is... EVIL?!?

This actually makes complete sense as a deal and is very much a good thing for both Disney and Pixar. Especially for Pixar since it gets a sugar daddy and becomes a major influence on Disney.

I stand corrected!

I popped into work today and talked with someone who was at this animation meeting and it is indeed true that Lasseter has effectively disbanded the animation group responsible for Toy Story 3.

So I guess things are already starting to move in a positive direction.

Chris

:lol: You watch. If Cars turns out to be Pixar's first dud and box office disappointment, the Disney haters will surely blame Disney for it.

No. But I do see their first flop, be it Cars or something else, being shrugged off considering their streak. More of a "it was bound to happen sometime," type reaction.

Didn't take them long to kill Disney's version of TS3. So does that mean we will be hearing about a new TS3 production soon. :lol: The premise from the article didn't sound half bad.

Just remember that Disney went on a few "can't miss" type runs with their films. Sooner or later, Pixar will hit a bad streak.

I see Pixar's first flop still be shrugged off as well. They have atleast two or three flops before there rep is effected in any way by it all. But it's bound to happen.

http://news.yahoo.com/s/nm/20060127/...ixar_disney_dc

Disney-Pixar merger pact lays out conditions

By Gina Keating
1 hour, 48 minutes ago


LOS ANGELES (Reuters) - The merger agreement between the Walt Disney Co. (NYSE:DIS - news) and Pixar Animation Studios Inc. (Nasdaq:PIXR - news) rests, in part, on whether Pixar's award-winning creative team agrees to work for the combined company, according to a securities filing made on Thursday.

The agreement also has a provision that would require Pixar to pay $210 million in the event it bails out of the deal, and expands by one member Disney's board of directors to 14, to include Pixar Chief Executive Steve Jobs.

The agreement gives Pixar Vice President John Lasseter, who will become chief creative officer of the Pixar and Disney animation studios, the authority to "green light" films for both studios, although Disney CEO Robert Iger has final approval.

The loss of Lasseter or Pixar President Ed Catmull, who will serve as president of both animation studios, could be a deal-breaking event, the agreement says.

Pixar's "brain trust" of seven directors and creative executives were also listed as company assets, and the agreement requires that a majority of them agree to join the combined company.

Those employees include "Finding Nemo" director Andrew Stanton; "Monsters, Inc." director Pete Docter; "The Incredibles" director Brad Bird; director/writer Bob Peterson; story artist Brenda Chapman; editor Lee Unkrich; and sound designer Gary Rydstrom.

The merger also sets up a "steering committee" whose job is to oversee feature animation at both studios, and to help maintain the Pixar "culture," among other duties.

The committee would consist of Catmull, Lasseter, Jobs, Iger, Walt Disney Studios Chairman Dick Cook, and Disney Chief Financial Officer Tom Staggs, and must meet at Pixar headquarters at least one full day every other month.

The agreement protects Pixar's right to eschew employment contracts, and mandates that the studio continue to be called Pixar.

The branding of films made after the merger is finalized will be changed to "Disney Pixar."

The groundbreaking animation company will, however, stay in Emeryville, California, with a sign at its gate that "shall not be altered" from "Pixar," the agreement said.


Chris

http://news.yahoo.com/s/nm/20060126/...ey_toystory_dc

'Toy Story 3' to be retooled at Pixar: sources

By Gina Keating
Thu Jan 26, 4:43 PM ET



LOS ANGELES (Reuters) - The Walt Disney Co. will scrap production of the latest "Toy Story" sequel and hand the project over to Pixar Animation Studios Inc. as part of its deal to acquire Pixar, sources familiar with the situation said on Thursday.

It was not clear how the change would affect the production schedule at Pixar, which has not announced release dates for films beyond the June opening of "Cars."

Disney said on Tuesday it would acquire Pixar in a $7.4 billion stock deal expected to close by this summer.

Production had already started on "Toy Story 3" at Disney's new animation unit in Glendale, California. The unit, dubbed Circle 7, was set up while the two companies were haggling over the terms of a new distribution agreement for Pixar films.

Circle 7 will not immediately be shut down, but its future is yet to be determined, one of the sources said.

Disney's current agreement with Pixar allows it to make sequels to the animated films the two studios made together.

Sequels can be made in three to four years compared with four or five years of development for an original animated film because technical work on most of the characters has already been done.

Former Disney Chief Executive Michael Eisner ordered "Toy Story 3" into production after the two companies broke off talks over a new distribution deal nearly two years ago.

Current Disney CEO Robert Iger, who took over in October, returned all sequel-making to Pixar as part of the merger agreement.

"It was really important to me that the people who made the films originally ... get a shot at making any films that were derivative," Iger told analysts on a conference call earlier this week.


Chris

Well, I guess there's one good thing so far...

I am still worried about this.

why? are you a disney stock holder? Pixar already scrapped Toy Story 3 and then decided to take it to a new direction if they are going to go ahead with it.

Pixar made a good move - cg animated movies are becoming a dime a dozen and far too easy to make with smaller studios... Pixar's reign wasn't going to last... now all their animators should cash in and find work elsewhere. I don't like this merger just for the possible cross marketing between disney and apple. Bleh

While I'm glad the Disney Toy Story 3 group isn't making the film, it's kind of crappy what happened to them.

Disney: "Here, guys, Toy Story 3 is your new project. Have fun."
TS3 group: "Cool, we'll get started."

cut a year or two later

Disney/Pixar: "Oh, sorry, you're shut down. All that work you did, yeeeaahh, thanks. Hang out while we decide if we're going to disband you altogether or not."
TS3 group: "Oh, uh, hmmm. That blows. Do we still get paid?"


If the movie gets made, it will probably turn out much better. As far as the entire merger thingy, I think it will be better for both companies. Give me another movie with Tigger in it, please.

I thought Pixar was taking them in since Lasseter was taking in the 2d animation again they simply wouldbe mixed into the fold of whatever animation department will be created. So in a sense it's simply them getting a kick ass boss.

I hope Jim Hill is not correct in his latest article. This buyout of Pixar could end up a disaster for Disney, not Pixar.

Jim Hill made this exact point. What if Lasseter decides to do the same to Disney's 3D animation, thinking they don't need to do 3D since Pixar is doing it. Disney will have wasted tens of millions. What happens to all of those 3D artists? Do they get fired? Do films like Meet the Robinson, American Dog, and Rapunzel Unbraided get canned? Three films which look like the best output Disney's had in years. This buyout is a lot more complicated than it would first seem.

Why? Cause it might increase Apple's share from 4% of the PC market? :lol: Apple has the better OS and they deserve more of the market than they have. I say bring on the cross marketing, whatever it takes to put a dent in the Windows market.

If I'm not mistaken, those 3D animators were the 2D artists. Those that wanted to stay got to learn 3D. I also doubt Lasseter would just drop everyone. They could easily setup the 2D shop again & or hire the best of the 3D bunch for Pixar so they can turn out films a little faster.

That's not the only point. What about those 3 films Disney has been working on? I want to see those, and they've spent a lot of money on them. If Lasseter cans them I'll never forgive him. They look like interesting films. I see no legitimate reason to stop Disney from making 3D films. Pixar doesn't have a patent on CG animated films. There's room enough for Disney and Pixar to do CG films. I hope Iger doesn't let him cancel those 3 films.

I see no reason why Lasseter would. Toy Story 3 is a different case. That is his series, he does not want to see someone else do anything with it. I mean he certainly respects all animation, and those all seem like good projects. I think the only reason he would cancel them is because they aren't turning out well. But I think even then he might steer them into a "better" direction.

I didn't realize John Lasseter was going to be the head of animation for Disney. That is good news then.

He will also be principal creative director of the Walt Disney Imagineering group, which means it will be his vision that will create the rides and attractions at the Disney Theme Parks.

Chris

Long read, but interesting!
 

Link

For Pixar, opportunity came calling
Disney deal gives Jobs more market power, and less risk

By Russ Britt, MarketWatch
Last Update: 11:02 AM ET Jan. 30, 2006


LOS ANGELES (MarketWatch) -- After Walt Disney Co. agreed to acquire Pixar Animation Studios, much was made about the deal giving the Magic Kingdom the creative juice it needed to get back in the movie-animation game.

As for Pixar, it may be an especially opportune time for the independent studio to become part of the Disney family. A huge slate of computer-animated films from throughout Hollywood is set to hit theaters this year, and the company's market value has never been higher.

As many as 15 computer-animated features could appear on the big screen between now and December, nearly quadruple the four that were released in 2005.

By taking shelter under the Disney banner and its marketing muscle, Pixar chief Steve Jobs won't have to worry as much about carving out a place in Hollywood's newly crowded release schedule, said Michael Barrier, an animation historian based in Little Rock, Ark.

"I think from Pixar's standpoint, that's a very definite motive for being acquired by Disney," Barrier said. "I think this happened because the timing is right for both of them. There's no reason to believe that Pixar can continue this unbroken string of hits without a stumble."

Pixar executives, who weren't available to comment, haven't directly addressed how selling the company may relate to over-crowding cineplexes with digital animation. However, Jobs did say the two sides now will be able to "collaborate without the barriers that come from two different companies with two different sets of shareholders."

To be sure, Pixar's innovation in computer-animated features has catapulted it to the top of the heap -- and kept it there. From its first full-length feature in 1995, "Toy Story," through 2004's "The Incredibles," all six Pixar films have scored at least $350 million at the worldwide box office.

Casualties

"Every month, there's a new animated film entering the marketplace. Not all of them can do well," said Paul Dergarabedian, president of box-office tracker Exhibitor Relations. "There's going to be some casualties out there, for sure."

The financial zenith thus far in the Pixar library has been 2003's "Finding Nemo," which took in $865 million worldwide. DreamWorks Animation's "Shrek 2" holds the record for computer films, with $881 million in 2004. Pixar's last release, "The Incredibles," made $624 million in 2004 and 2005.

Computer films released in 2005 included DreamWorks' "Madagascar" which made $407 million, Fox's "Robots" at $246 million, Disney's "Chicken Little," which made $180 million and The Weinstein Co.'s current release, "Hoodwinked," with $30 million domestically thus far.

At a time when results are losing box-office momentum, did Disney agree to buy Pixar just as the era of the computer-animated megablockbuster is coming to an end? At least one analyst seems to think so.

Just before the deal was reached, Spencer Wang of J.P. Morgan argued that the glut of upcoming films is a sign that computer animation is entering a hangover period that is an echo of what happened to hand-drawn films in the mid-1990s after Disney's triumph on "The Lion King."

Wang said "Shrek 2" may well end up being the peak for computer-animation, just as 1994's "Lion King" was the peak for hand-drawn films.

"Lion King" made $784 million worldwide -- the equivalent of more than $1 billion in today's dollars. It prompted a rush into animation by all studios and drove the labor costs so high that budgets for Disney and others soared past $100 million per movie. Some animators pulled down more than $1 million a year in salary.

Pressure on margins

The same thing may be happening in the digital-animation age, Wang said. High returns that lead to more competition ultimately saturate the market, resulting in lower market share and higher costs. That ultimately puts pressure on film margins.

"If we are correct in this hypothesis, then Disney would be essentially buying a business with diminishing returns," Wang wrote in a research note. "This, in turn, would also imply that Disney would be acquiring Pixar at peak earnings and a peak valuation."

Wang added: "Said another way, if the prospects for [computer] animation are so bright, this begs the question: Why would Pixar be willing to sell now?"

Disney's $7.4 billion purchase price included a nominal premium to Pixar's stock price. With Pixar at its maximum value, the buyout essentially allows Jobs to avoid the risk of Pixar's peaks and valleys based entirely on the success of its own releases. And he is poised to become Disney's largest individual shareholder.

"Who could buy those shares? Disney is the most obvious candidate," said Robbert Van Batenburg, head of global research for Louis Capital Markets.

There are, however, a number of other industry watchers who feel the Disney-Pixar deal makes sense and should be hugely profitable for both sides.

They say that as long as Pixar's creative process is preserved -- as Disney Chief Executive Robert Iger has vowed -- then the entity should continue to be the gold standard in computer animation.

But the key ingredient isn't computer animation itself, says Laura Martin, analyst for Soleil Media Metrics. The play's the thing, she adds.

"There is no upside limit to great storytelling," Martin said. "That kind of storytelling is going to benefit the entire Walt Disney Co."

Indeed, there are rumblings that even Pixar executives are not wedded to computer imagery. John Lasseter, the creative force behind "Toy Story" and a key executive at Pixar, will become the chief creative officer for the combined Pixar and Disney animation departments.

A Disney alumnus from the company's hand-drawn days, Lasseter is said to be interested some two-dimensional projects as well, said Ramin Zahed, editor-in-chief of the trade publication Animation Magazine.

"I think we may be seeing a renewed interest in 2-D animation," he said.

Pixar executives in charge

Lasseter and Pixar President Ed Catmull, who will oversee all animation activities at both companies, are evaluating all of Disney's projects. David Stainton will step down as president of Disney's animation operations.

Disney will drop production on "Toy Story 3," a sequel that it planned when Pixar originally said it would end its relationship with Disney in 2004.

That bone of contention out of the way, the duo are looking to see whether such planned features as 2008's "Gnomeo and Juliet" and 2009's "Rapunzel Unbraided" will see the light of day.

In the immediate future, it seems clear that the next Pixar feature, "Cars" should be another hit when it's released June 9, Zahed said.

And for now, computer animation is proving to be profitable. With the $30 million made thus far domestically by "Hoodwinked," the film already has brought in double its $15 million budget. Disney's "Chicken Little" turned in $180 million on a $60 million budget. That budget is markedly smaller than those for many of its hand-drawn projects.

That sends the message to filmmakers to keep going, said Bill Mechanic, head of Pandemonium Productions and former chairman of Fox Studios. Mechanic's company is putting out its own computer animated feature, "Coraline," in 2007.

"Until the audience tells you it's too crowded, it's not too crowded," Mechanic said.

Mechanic also points out that Pixar already has several processes in place to boost prospects for a hit. Foremost is that Pixar puts out a picture when it's ready and doesn't rush into production.

"Right now, it's very hard to bet against John Lasseter," he said. "I think he's in a league of his own."


Russ Britt is the Los Angeles bureau chief for MarketWatch.
Copyright © 2006 MarketWatch, Inc. All rights reserved.


Chris

2-D!!

:fc:

http://news.yahoo.com/s/nm/20060201/...ar_lasseter_dc

Pixar's Lasseter seen as 'new Walt Disney'

By Gina Keating
1 hour, 5 minutes ago

LOS ANGELES (Reuters) - John Lasseter, the man chosen to revive the fortunes of Walt Disney Co.'s animation business has professed a deep regard for the legendary studio, but has criticized it for killing Walt Disney's innovative spirit.

Lasseter, the creative force behind hits factory Pixar Animation Studios Inc, is now set to take charge of Disney animation when its $7.4 billion purchase of Pixar closes this summer.

Industry watchers have dubbed 49-year-old Lasseter "the new Walt Disney" and are awaiting signs that his talent for creating compelling stories and characters will rub off on a cornerstone division that has been in a slump for a decade.

"Most animators regard Lasseter as the most respected current creator," Sarah Baisley, editor-in-chief of Animation World Network, said. "He lives the life of animators ... (he has) a pure dedication and love of the art and how to treat the artist."

Lasseter first worked at Disney in 1975 as an animation student, then joined the company after graduating from the California Institute of the Arts in 1978.

He was mentored by Frank Thomas and Ollie Johnston, two of Walt Disney's "Nine Old Men," who animated the classics "Snow White and the Seven Dwarfs," "Pinocchio," "Fantasia" and "Bambi."

But Lasseter, who championed computer animation at Disney, left the studio after Disney passed him over for a directing assignment, according to James Stewart's "Disney Wars."

Moreover, the legendary studio, which turned hand-drawn figures into internationally renown works of cinematic art for generations of viewers, was not ready for Lasseter's new ideas.

BRAVE NEW WORLD

At a tribute to Thomas, who died in 2004, Lasseter said the Disney studios of the late 1970s "was a little different than my dreams."

"All of us at CalArts were just so empowered with wanting to do great films -- Star Wars had just come out. We wanted to do that in animation," Lasseter said, according to a transcript of his speech in Animation World Network.

"But we get there and it was not quite what we had dreamed of. At times, we were told just to keep our ideas to ourselves and to do what we were told. It was like my heart was ripped out."

At Disney, Lasseter first encountered the three-dimensional animation that he later pioneered at Pixar in "Toy Story," the first feature-length computer animated film.

"I got so excited about it," Lasseter said at the tribute. "(Thomas) was so excited, too, about this notion, because Walt always was trying to get more dimension into his animation. I looked at the computer and said, 'This is what Walt was waiting for.' And Frank (said), 'Yes."'

Lasseter and another animator created a 30-second 3-D test film for Disney, but the project was deemed too expensive and the technology too cumbersome.

"I followed my dream, though, and Frank was with me in spirit, and I went to Lucasfilm and worked with (Pixar President) Ed Catmull and our group named Pixar," Lasseter said.

Through the years, Lasseter stayed in touch with Thomas and Johnston and put their advice to work in each of Pixar's six blockbuster films, including "Finding Nemo," "Monsters, Inc.," "A Bug's Life" and "The Incredibles."

"It's not just moving something (on screen)," Lasseter said. "It's what the character is thinking. It's the heart. The character should be thinking. I never forgot that."

Lasseter, who also will oversee the Imagineering division that creates rides for Disney's theme parks, has a contract with Pixar that expires in 2011.

The agreement, signed in 2001, pays him $2.5 million to start with 5 percent annual pay increases, and gives him Pixar stock options worth about $84 million at Wednesday's share price.

Lasseter is seen as so integral to Pixar's successes that Disney stipulated that his death or departure, or that of Catmull, could nix the deal.


Chris

The Walt Disney Co. and Pixar Animation Studios Inc. have agreed to extend their current distribution agreement to include Pixar's 2007 release, Ratatouille, a deal that will be moot if Disney's proposed acquisition of Pixar closes this summer as expected. The two companies negotiated what amounts to a one-picture extension as a fail-safe measure in case the acquisition doesn't happen. "This is a deal that Disney and Pixar negotiated independent of the proposed merger to handle the distribution of 'Ratatouille' until such time as the transaction closes," Pixar said Thursday in a statement.

FREEZEDRIEDMOVIES.com

Thought I would put this in here!
 

http://www.latimes.com/business/la-f...?track=tothtml

February 7, 2006

Disney Profit Up; ABC Radio Deal Settled
The media giant's first quarter beats expectations despite a drop in studio earnings.

By Kim Christensen, Times Staff Writer

Disneyland's 50th-anniversary celebration helped boost Walt Disney Co.'s fiscal first-quarter profit by 7%, despite a sharp drop in its movie studio earnings.

Television operations and consumer products also made strong showings, the Burbank media giant said Monday, the same day it announced it would merge its ABC Radio stations with Citadel Broadcasting Corp.

Disney's net income for the quarter ended Dec. 31 rose to $734 million, or 37 cents a share, from $686 million, or 33 cents, a year earlier. Not counting the gain from the sales of a cable television equity investment and a magazine business, the per-share profit of 35 cents still beats Wall Street's expectations by a nickel. Sales of $8.85 billion were up 2%, also surpassing analysts' consensus predictions.

"I am encouraged by the solid momentum in our earnings and the financial and creative strengths that underpin these results," Disney Chief Executive Robert Iger said in a statement.

Chief Financial Officer Thomas Staggs said the first-quarter results reflected fundamental growth in the company's businesses, adding that Disney remained on course to achieve double-digit earnings growth at least through 2008.

Disney announced its results after the market closed. Its shares rose to $25.47 in extended trading, after falling 5 cents to $24.96 in regular trading.

"Altogether, I think it's very solid," said Harold Vogel, an independent media analyst. "I don't see anything that would make someone rush out and buy stock over what they had last night, but at the same time, there's no reason why anyone should rush to sell it either."

Disney's parks and resorts business posted a profit of $375 million for the quarter, a 51% gain from a year earlier. The company's California and Florida theme parks set a holiday season attendance record, Iger told analysts in a conference call.

"This was due to the strength of our industry-leading theme parks propelled by the ongoing excitement of our 50th-anniversary celebration," he said.

The consumer products division, including video games, showed a 17% increase in profit, while media networks, including ABC and ESPN, gained 7%. As expected, the studio entertainment division's profit dropped, sliding 60% to $128 million from a year earlier.

Despite strong box-office performances by "The Chronicles of Narnia: The Lion, the Witch and the Wardrobe" and "Chicken Little," Disney's slate overall fell short of the previous year's offerings, which included such hits as "The Incredibles" and "National Treasure."

Iger and some analysts predict that the studio will fare much better this year, largely because of the summer releases of "Pirates of the Caribbean: Dead Man's Chest" and Pixar Animation Studio's "Cars."

Disney last month agreed to acquire Pixar for $7.4 billion in a move to resurrect its ailing animation business. In buying Pixar, Disney not only would get the computer animation pioneer responsible for a string of hits, such as "Finding Nemo," but also its talent, including creative guru John Lasseter.

"We believe the combination with Pixar provides us with great promise for the future across, not just our studio business, but a number of our businesses," Iger said. "Clearly it strengthens our asset portfolio."

Media analyst Katherine Styponias of Prudential Equity Group rates the stock "overweight" and set a price target of $34 a share. But in a note to investors, she warned of potential risks, like terrorist threats, that could affect park attendance.

Also Monday, Disney announced that it had reached an agreement to merge ABC Radio — which includes 22 stations and the ABC Radio network — with Citadel Broadcasting of Las Vegas. For months Disney has considered selling its ABC Radio operation, which it does not believe is essential to its core businesses.

The cash-and-stock deal, valued at $2.7 billion, would result in the creation of a new company, Citadel Communications, which would be the third-largest radio group in the country, Disney said. If the merger is completed as planned, Disney shareholders would own 52% of the new company and Citadel shareholders 48%. Disney also would keep $1.4 billion to $1.65 billion in cash, based on Citadel's share price when the deal closes.

Citadel shares rose 4 cents to $12 on Monday before the deal was announced.

The new company would be headed by Citadel CEO Farid Suleman, a former CEO of Infinity Broadcasting Corp.


Chris

http://news.yahoo.com/s/nm/20060216/media_nm/disney_dc

Disney's Marty Sklar exits Imagineering job for parks post

By Sheigh Crabtree
Thu Feb 16, 7:09 AM ET


LOS ANGELES (Hollywood Reporter) - The executive shake-ups continued at the Walt Disney Co. on Wednesday as the company adjusts to its recent $7.4 billion acquisition of Pixar Animation Studios.

Marty Sklar, a 50-year veteran at Disney, stepped down as vice chairman and principal creative exec for Walt Disney Imagineering in the wake of Pixar executive vp John Lasseter being named principal creative adviser of the theme park division. In his new position, Lasseter reports to Disney CEO Robert Iger, bypassing parks and resorts management.

Sklar will serve as Walt Disney parks and resorts Imagineering ambassador, a role as yet undefined.

"I knew that as my 72nd birthday and my 50th Disney anniversary approached, I would look for new challenges," Sklar wrote in a memo to Disney employees. "So when Jay Rasulo (chairman of Walt Disney parks and resorts) asked me to talk about the future, I was 'all ears' to a challenging proposal Jay made. It not only seems to be one of those ideas that is overdue, but it was clear to me that I am the perfect casting (perhaps the only candidate) capable of originating and organizing this assignment."

Describing the new assignment as a "blank sheet of paper," Sklar wrote that he planned to recruit new talent at colleges and universities, develop traveling exhibitions to promote the talents -- present and past -- of Imagineering and speak at conferences and conventions.

Sklar's former position is not expected to be filled, according to an Imagineering spokesperson.

"This has been in the works for some time," the spokesperson said. "We have a very strong creative team in place. For the past 10 years we have been working with Pixar as we take the stories from their films and bring them to our theme parks. We have had a very strong creative relationship with Pixar."

When Lasseter and Ed Catmull, the newly appointed president of Pixar and Disney animation studios, toured the Walt Disney Co. divisions after last month's acquisition announcement, the two visited briefly with Imagineering staff.

In a memo to WDI staff regarding Sklar's new position, Rasulo emphasized the talents of the group's creative leadership, noting that they all "look forward to the energy and insight Imagineering will get from John Lasseter in his new role as principal creative adviser."

Reuters/Hollywood Reporter


I can finally post about this happening. We got an e-mail yesterday from Marty letting us know that after 50 years with the company he was taking on a new 'Ambassador' role with the company. But I didn't want to post this news until it was an official press release.

I actually saw him yesterday and wanted to yell out "Hey Ambassador, how's it going?", but I like my job! :D

Chris