Analysts: Disney Deal With Pixar Likely
LOS ANGELES (AP) -- The more time that passes without a new distribution deal between The Walt Disney Co. and Pixar Animation Studios, the greater the speculation, including a theory that Disney is angling to buy Pixar and install its chief executive, Steve Jobs, as Disney's chairman.
Analysts believe a new distribution deal is likely -- and soon. But they dismiss the notion that Disney would buy Pixar. An outright purchase would be too expensive, analysts say, and would not be wise for either company in the long term.
"I think it's absurd," said David Miller, an analyst with Sanders Morris Harris. "It would have to be an enormously compelling offer to even have Mr. Jobs stop and consider it for maybe more than five seconds."
Still, guessing the terms of a deal has become a bit of a sport on Wall Street, with speculation pushing Pixar shares higher in recent days.