Feather in Disney's Cap

The sky wasn't falling at Disney (DIS Quote) Monday after Chicken Little posted a strong opening weekend at the box office.

The tale of the scrawny chicken who thinks the world is coming to an end took in $40 million, according to Boxofficemojo.com. That made it the weekend's top movie and the second-biggest opening in terms of unadjusted grosses for a Disney-made feature, behind The Lion King.

Chicken Little's performance, which came despite lukewarm reviews, may ease concerns on the part of some investors that the Burbank, Calif.-based media giant is too dependent on its partner Pixar (PIXR Quote) for hit animated films.

"Forty million isn't bad," says Dennis McAlpine, an independent media analyst based in Scarsdale, N.Y., who rates Disney buy and Pixar hold. He doesn't own shares of either company. "It certainly isn't a flop."

Disney was "thrilled" with the film's performance, which was in the "high end of what we possibly could have hoped for," general sales manager Chris LeRoy told Box Office Mojo.

Pixar Chief Executive Steve Jobs may sell the company to Disney if the two can agree on a price, according to a report in The New York Times. Disney Chief Executive Robert Iger hasn't made a formal offer, the paper said.

Pixar's distribution agreement with Disney expires after the release of Pixar's Cars, which is due in the spring of 2006. Jobs, who also runs Apple Computer (APPL Quote), has said he wants a new distribution agreement for Emeryville, Calif.-based Pixar in place by the end of the year. Relations between Pixar and Disney have warmed considerably since Michael Eisner left the magic kingdom.

Shares of Pixar, whose The Incredibles opened last year with a box office of $70.5 million, fell $1.42 to $52.69. Before Monday the shares had zoomed 26%. Disney, which also owns Touchstone pictures and the ESPN sports cable network, rose 23 cents to $25.04.