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.............................. Pixar Animation Studios
Logo and Trademark..............................
Pixar Animation Studios is an American computer animation studio based in Emeryville, California (USA) notable for its seven Academy Awards. It is best known for its CGI animated feature films—such as Toy Story, Finding Nemo, and Cars—achieved through PhotoRealistic RenderMan, its own implementation of the industry-standard Renderman image rendering API, which is used to generate high-quality images.
On January 24, 2006, The Walt Disney Company agreed to buy Pixar for $7.4 billion through an all-stock transaction. The acquisition was completed on May 5, 2006 (swapping one Pixar share for 2.3 shares of Disney), making Pixar a wholly-owned subsidiary of Disney.
Pixar and Disney had disagreements after the production of Toy Story 2. Originally intended as a straight-to-video release (and thus not part of Pixar's three picture deal), the film was eventually upgraded to a theatrical release during production. Pixar demanded that the film then be counted towards the three picture agreement, but Disney refused.
Pixar's first five feature films have collectively grossed more than $2.5 billion, equivalent to the highest per-film average gross in the industry. Though profitable for both, Pixar later complained that the arrangement was not equitable. Pixar was responsible for creation and production, while Disney handled marketing and distribution. Profits and production costs were split 50-50 but Disney exclusively owned all story and sequel rights and also collected a distribution fee. The lack of story and sequel rights were perhaps the most onerous to Pixar and set the stage for a contentious relationship.
The two companies attempted to reach a new agreement in early 2004. The new deal would be only for distribution, as Pixar intended to control production and own the resulting film properties themselves. Pixar wanted complete financial freedom; they wanted to finance their films on their own and collect 100 percent of the profits, paying Disney only the 10 to 15 percent distribution fee. More importantly, as part of any distribution agreement with Disney, Pixar demanded control over films already in production under their old agreement, including The Incredibles and Cars. These conditions were unacceptable to Disney, but Pixar would not concede.
Bad blood between Steve Jobs and Disney Chairman and CEO Michael Eisner made the negotiations more difficult than they otherwise might have been. They broke down completely in mid-2004, with Jobs declaring that Pixar was actively seeking partners other than Disney. However, Pixar did not enter in negotiations with other distributors, since other partners saw Pixar's terms as too demanding. After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September of 2005.
In preparation for potential fallout between Pixar and Disney, Jobs announced in late 2004 that Pixar would no longer release movies at the Disney-dictated November timeframe, but during the more lucrative early summer months. This would also allow Pixar to release DVDs for their major releases during the Christmas shopping season. An added benefit of delaying Cars was to extend the timeframe remaining on the Pixar-Disney contract to see how things would play out between the two companies.
Pending the Disney acquisition of Pixar the two companies created a distribution deal for the intended 2007 release of Ratatouille to ensure that if for any reason the acquisition fell through this one film would still be released through Disney's distribution channels. (In contrast to the earlier Disney/Pixar deal Ratatouille was to remain a Pixar property and Disney would have received only a distribution fee.) The completion of Disney's Pixar acquisition, however, nullified this distribution arrangement.
To date, Toy Story is the only Pixar film to have a sequel. Toy Story 2 was commissioned by Disney as a straight-to-video, 60-minute film. When Disney executives saw how impressive the work-in-progress imagery for the sequel was, they decided it should be reworked as a theatrical release. The resulting change in status of Toy Story 2 was one of the major causes of the disagreement between the two companies that nearly led to their split. Toy Story 3, the second theatrical sequel, is scheduled for a 2010 release. Toy Story is also the only Pixar film to be extended onto television, with the Buzz Lightyear of Star Command film and TV series.
Pixar is not against sequels, but believe that they should only be made if they can come up with a story as good as the original. Following the release of Toy Story 2, Pixar and Disney had a gentlemen's agreement that Disney would not make any sequels without Pixar's involvement, despite their right to do so. In 2004, after Pixar announced their failure to make a new deal, Disney announced that they would go ahead with sequels to Pixar's films with or without Pixar, although they stated they would prefer Pixar to agree to work on them. Toy Story 3 was put into pre-production at the new CGI division of Walt Disney Feature Animation, Circle 7 Animation.
When Lasseter was placed in charge of all Disney and Pixar animation following the merger, he stated that all sequels were immediately to be put on hold, with Disney going so far as to actually state that Toy Story 3 had been canceled. However, in May of 2006, it was announced that Toy Story 3 was back in pre-production, now under Pixar's control.
With the guarantee of full control in his hands, Lasseter has opened the door for the possibility of sequels to other Pixar films besides Toy Story. Given the many story possibilities for the various Pixar characters and Lasseter's statement that "If we have a great story, we'll do a sequel", others seem likely somewhere down the line. Despite the lack of sequels, the worlds of Pixar films are often extended through the DVDs and references through all their films.
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