Steve Jobs' Pixar Nets $6.3 Billion from Disney Purchase--Deal Will Directly Affect Apple

On Monday, Disney offered and Pixar's Board accepted a buyout as we reported Monday. Then late yesterday after discussions with Pixar employees, Disney and Pixar jointly announced that Disney has acquired Pixar, subject to shareholder voting and other particulars, for a net $6.3 Billion in Disney stock. Disney's stock payment is worth $7.4 Billion in a ratio of 2.3 shares for each one of Pixar's but Disney gets back over $1 Billion in cash from Pixar making the net cost of the deal some $6.3 Billion. Pixar Animation Studios will be joined with Disney's animation studios and Pixar's President Ed Catmull will become the President of the combined animation studios. Dr. Catmull will report to Disney's CEO Robert Iger and Disney Studio's Chairman Dick Cook. Steve Jobs, Pixar's CEO, will become the largest shareholder in Disney and will join Disney's Board as a non-independent director.

So what does this mean for Apple? Rather than speculate like others have, we report the words that came directly from Steve Jobs during the 47 minute conference call for financial analysts that followed the deal's official announcement. Those on the call included Steve Jobs, Ed Catmull and Robert Iger.

In answer to a question from a Goldman-Sachs analyst on exploiting Pixar's capability "beyond the theatrical window," Steve Jobs stated that great animated movies may be watched by kids "...dozens of times if not hundreds of times..." and they may "...watch them many, many times in many places on probably many devices...." Obviously, Jobs is clearly thinking that Apple will provide most, if not all, of those devices. While there were no other references to Apple, the company will benefit from Steve Jobs increased time and energy to focus on Apple and his direct influence on the consumer media giant, Disney.

Here is the joint press release and the conference call for more details. [Bill Fox]