Jan. 31, 2006

Most see Dis-Pixar deal as win-win
By Georg Szalai

NEW YORK -- Throughout most of last week, Wall Street discussed the financial and strategic implications of the Walt Disney Co.'s $7.4 billion takeover deal for Pixar Animation Studios.

Sanders Morris Harris analyst David Miller joined the debate over who is the bigger winner in the transaction. "This is a better deal for Disney than it is for Pixar," he argued, citing three key advantages for the Mouse House -- ownership of all film franchises, full economic ownership and benefits, as well as a transformation of its animation unit.

"Despite near-term (earnings) dilution, we believe the deal is a long-term strategic positive for Disney," Citigroup analyst Jason Bazinet echoed the notion that Disney will benefit from the buyout. "It raises the odds of a successful animation turnaround and eliminates a major animation competitor." Overall, he called the transaction "a bold strategic bet" by Disney CEO Robert Iger.
Full article at http://www.hollywoodreporter.com/thr..._id=1001921159