(*_ Disney is now a multi-faceted entertainment company that has its hands in multiple entertainment industries, including streaming, film, and theme parks.
Having started in 1923 as a cartoon studio by Walt and Roy Disney, The Walt Disney Company has grown to be the largest and most influential entertainment company in the world.
Pixar began in 1986 when Steve Jobs purchased George Lucas’ Computer Division and turned it into its own independent company.
John Lasseter directed the first animated short film, Luxo, Jr., which was released in the same year. It was nominated for an Oscar under the best animated short film category.
Disney owns Pixar, having purchased the company in 2006 for $7.4 billion. Steve Jobs, the former owner of Pixar was made a shareholder in Disney and served as an advisor to CEO Bob Iger regarding future acquisitions, including Marvel Studios.
When Did Disney Acquire Pixar?
In 2006, Disney and Pixar had been working together for more than a decade to produce some of Disney’s biggest films like Toy Story and Finding Nemo. Jobs was ready to end their relationship with Pixar and Disney because of disputes over a distribution agreement. Iger persuaded him to sell.
In 2006 Jobs sold Pixar to Disney for $7.4 billion and a seat on the Disney board. He served on the Disney board until his death from pancreatic carcinoma in 2011..
Iger was aware that Pixar studios add enormous value to Disney’s brand and could purchase the company to continue the partnership without further disputes.
How did Disney acquire Pixar?
Disney CEO at the time Bob Iger saw an opportunity to acquire Pixar in 2006. Both companies had a long history of success together.
Bob Iger pitched his idea at Steve Jobs, the Pixar owner, during a whiteboard session held at Apple headquarters. The two discussed the pros and cons to combining their efforts. Ultimately, the input of Steve Jobs was what led to the approval of the Disney board and the acquisition being priced at $7.4billion.
Jobs still held a 60% stake in Pixar, making him the largest investor in Disney at the time.
What Changes Did Pixar Make After the Acquisition?
Two years after Disney bought Pixar Studios, Wall-E was created. It was critically acclaimed for its storyline and animation, grossing $521.3 million worldwide.
Despite being criticized for making many sequels, Pixar Studios has produced some of the most successful films since the acquisition.
Toy Story 3 made $1. 06 billion in 2010, The Incredibles 2 grossed $1.2 billion in 2018, and Toy Story 4 grossed $1. 07 billion in 2019, proving the partnership is still working.
What was the Connection Between Disney and Pixar?
In 1991, Pixar Studios agreed with The Walt Disney Company to produce 3 feature-length animated movies.
In 1995, this agreement brought us Toy Story. It was the first computer-animated feature film.
Two years later, due largely to how big Toy Story had been, Pixar extended its contract with Disney and came out with A Bug’s Life and Toy Story 2 before the year 2000.
Pixar’s contract with Disney was nearing completion by 2006 when Iger and Jobs got together to negotiate the purchase of Pixar by Disney.
Is Pixar a Subsidiary of Disney?
Pixar Studios is a subsidiary of The Walt Disney Company, as of 2006 when its sale was approved by Pixar shareholders.
With Pixar becoming a subsidiary and its former CEO Steve Jobs holding the largest stake in Disney, Steve Jobs became the largest shareholder in Disney.
After the purchase, Steve Jobs held a 7% share in The Walt Disney Company. He remained on the Disney board until his death in 2011..
All other Pixar stakeholders had received 2.3 shares in stock in Disney for their respective stocks in Pixar Studios.
Does Disney Still Have Pixar?
The Walt Disney Company still has Pixar Studios. Pixar Studios has produced high-quality shorts and feature films for Disney throughout the years since its merger.
Some Pixar’s latest films, including Onward, Luca, Soul, and others, can be viewed on Disney’s streaming platform Disney+.
Disney has a knack for buying Studios that add value and increase the Walt Disney Company’s brand, including Marvel Studios, Pixar and Pixar. This has allowed it to make more money than it could ever have on its own.