The Pixar Deal – A Steep Price For Talent

Just what is Disney getting for its $7.7 billion purchase of Pixar? “Disney executives are assuming that Disney will get back $1 billion from Pixar’s cash and investment portfolio and recoup another $700 million from what Pixar will earn from its share in the past coproductions and from future video, pay-TV, and television sales. If so, the net cost of acquiring John Lasseter’s talents—and employment contract—will be just over $6 billion. The deal memo in fact specifies that Disney can pull out of the acquisition if Lasseter does not agree to provide his services.”