Pixar Shares May Gain on WSJ Report of Disney Takeover Talks - Bloomberg, 1/19/06
Shares of Pixar, the creator of computer-animated movies including ``Toy Story'' and ``Finding Nemo,'' may rise after the Wall Street Journal reported the company is in talks to be bought by Walt Disney Co.
Pixar gained to the equivalent of $59.78 at 10:53 a.m. in Germany in trading of 400 shares, up 4 percent from yesterday's close on the Nasdaq Stock Market. The deal being discussed calls for a purchase price of slightly more than Pixar's current $6.7 billion market value, the newspaper said, citing people familiar with the negotiations.
Pixar Chief Executive Officer Steve Jobs would become the largest individual Disney shareholder and likely join the board of Burbank, California-based Disney, the newspaper said. A Disney spokeswoman in London, Joyce Lorigan, said the company had no immediate comment on the report. Pixar couldn't immediately be reached for comment.
A deal isn't certain, as the talks are at a 'sensitive'' stage and the two sides are still 'haggling'' over price, the Wall Street Journal said. The parties could still settle on a smaller arrangement, such as an agreement for Disney to distribute Pixar movies, the newspaper said. The deal would be an all-stock transaction, the Journal said.