This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Disney, Pixar Playing Chicken

All eyes will be on a little chicken this weekend as Disney (DIS - Get Report) releases its first home-grown, entirely computer-generated feature.

If Chicken Little has wings -- and it's far from certain that it will, given the recent uneven results from Disney's once-storied animated studio -- it could help the media giant reassert itself just as high-profile talks loom with Pixar's (PIXR) Steve Jobs. On the other hand, if the sky falls, Jobs will have a little more leverage when the parties start serious negotiations in coming weeks.

"I think it has huge implications," one media analyst says of the movie's box office performance. "I think it might show that they Disney can't seem to get animation right and need a relationship with Pixar."

To be sure, one of the big questions in lotus land these days is what will become of the Disney/Pixar relationship -- and for that matter the Pixar animation studio's future, given its distribution situation.

Earlier this week, The New York Times reported that Jobs might consider selling the company, which to date has an impeccable record producing hits such as The Incredibles and Finding Nemo. Pixar would not come cheap, as the Apple (AAPL - Get Report) founder seems quite fond of setting his own price points.

Pixar stock has spent recent months recovering from a midsummer earnings screwup, but its shares have risen sharply this fall. They rose 99 cents Friday to $53.49, putting them within a dollar of a 52-week high. Disney has done less well, falling 28 cents to $24.62 Friday, leaving it right in the middle of the mid-20s range it has traded in for most of the year.

Jobs and newly anointed Disney Chief Executive Robert Iger will look closely at box office returns after this weekend to determine whether Disney's animation studio has regained any sort of a footing in the computer-generated age.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $132.65 1.82%
DIS $110.16 0.58%
FB $81.91 0.47%
GOOG $555.37 -1.71%
TSLA $231.55 6.01%


DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs