Apple's Tomorrowland
Business Week 12/26/06

Apple's Tomorrowland

Sure, Pixar can help restore the Magic Kingdom's luster, but it's what Disney can do for Steve Jobs and his outfit that's more intriguing

I wonder if we'll ever see Steve Jobs wearing mouse ears at his next Macworld keynote. The merger of Disney and Jobs-led Pixar Animation Studio had to happen, if only to inject some new blood into the flagging entertainment brand that Disney has become.

But now that the Apple Computer
CEO has a bigger financial stake in the trials and tribulations of the Mouse House than anyone on the planet, I can't help but wonder what the turn of events means for Apple.

Financially speaking, the timing of the Pixar sale is ideal. On a split-adjusted basis, Pixar shares have been trading at near a five-year high, and the Disney acquisition values the stock above that, if only by a little. If ever there was a time to unload Pixar on a willing buyer, this was it. Jobs, who is CEO of Pixar, gets not only a board seat, but also a sizeable stake in Disney, about 6.5%.

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