pixar to buy universal

moav

moav

Hunter of Muffins
I think this is playing out more like a star wars movie then we think. Apple has denied anything to do with these talks... though we know for certain Steve has been seen on numerous occasions in Lenoir.

What if in fact from a certain point of view Steve was telling the truth and that Apple has in fact no interest in Universal but Pixar does. This makes much more sense. Movie and Music not Computer & Music. Of course it really would be cool if Apple where to purchase it just think a billion CDs purchased and at the start of every CD when someone puts it into their drive the mac startup chime welcomes them.
 
I don't know... what would pixar do with a 6 billion dollar record company? it could have movies with some real iced soundtracks - but i don't know if that would be such a big deal. is this just a scheme you thought up or is there something more behind this?
 
Interestingly enough, a small post in enterntainment weekly says jobs is look to buy "the biggest music company on the planet." Any more thoughts on this post? Is it universal he is trying to buy? Rumors have been circulating about buying music for download. Coudl it be another trend setter for Apple?

peace.
 
i was under the impression that Apple or Jobs owned Pixar....

what difference would it make, if it was apple or Pixar.
 
Blastic, Apple does not own Pixar. Pixar is a separate company which Steve is also CEO for. He was CEO of Pixar before he was invited back to be interim CEO of Apple.

On another note. My father works in the Music industry. All of the insider stuff that he's been reading says Apple WILL buy Universal Music, although not in the way that we all think. It would not be Apple buying the entire $6 billion dollar chunk, but instead the Music Executives at the highest levels of Universal would combine their monetary power with the might of Apple's creating a leveraged buyout. However Apple would actually only pay for a portion of it, more like $2-3 billion rather than $4billion it has in the bank plus $2billion in debt. So the music execs would be picking up the rest through their own fortunes and loans. (I'm not sure if these loans would be secured by Apple. They might. Perhaps thats another reason they need apple.)

(Last sentence above was edited)

They have lot at stake here, especially if the companies they've worked so hard to build are sold down river to some venture capitalist. They see Jobs as a visionary/artistic type, not just a numbers and bolts kind of guy.

If this is true, I'm personally all for this purchase. I think it will give Apple a foot into another area that has lots of exposure and could help with the core PC business.

Perhaps making the MAC the IDEAL computer platform on which to play and create music.
 
Originally posted by moav
I think this is playing out more like a star wars movie then we think. Apple has denied anything to do with these talks... though we know for certain Steve has been seen on numerous occasions in Lenoir.

What if in fact from a certain point of view Steve was telling the truth and that Apple has in fact no interest in Universal but Pixar does. This makes much more sense. Movie and Music not Computer & Music. Of course it really would be cool if Apple where to purchase it just think a billion CDs purchased and at the start of every CD when someone puts it into their drive the mac startup chime welcomes them.
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Pixar has about $.5 billion in current assets and their market cap is just over $3 billion. They would obviously need to raise the money needed for any buyout somewhere else. Perhaps some type of joint venture with Apple? Or maybe Steve will start a holding company and do a highly leveraged buyout with Apple and Pixar being major backers (this could be a lot safer for Apple and Pixar).

One thing I don't reallly hear anyone saying is that perhaps Apple/Steve is only going to take a stake in Universal. They could buy 20% of the company, put Steve on the board (maybe even make him an officer) and create a much closer bond between the two companies. This way they can honestly say "We have not talked to Apple about the purchase of Universal" where purchase means the entire company. Apple could always have the option to take on more of the company at a later date. This again would be a much safer move than Apple tieing up huge amounts of cash (not that 20% would be cheap either)
 
Originally posted by binaryDigit
One thing I don't reallly hear anyone saying is that perhaps Apple/Steve is only going to take a stake in Universal. They could buy 20% of the company, put Steve on the board (maybe even make him an officer) and create a much closer bond between the two companies. This way they can honestly say "We have not talked to Apple about the purchase of Universal" where purchase means the entire company. Apple could always have the option to take on more of the company at a later date. This again would be a much safer move than Apple tieing up huge amounts of cash (not that 20% would be cheap either)
Click to expand...

See my above comment.
 
Okay...several things to consider:

1. There are (at least) three different entities here:

- Steve Jobs (the person)
- Apple Computer, Inc. (which Steve Jobs is ONLY the CEO, but not the owner of)
- Pixar (which Steve Jobs is both CEO AND owner)

These can (and should) be treated and considered separately for a variety of reasons.

2. As to Pixar's ability to buy Universal (a bigger entity)...this happens rather often. Look at Comcast buying AT&T Broadband, Qwest buying USWest, Worldcom buying MCI. Now these don't always work out well, but it DOES happen.

3. Another reason that Apple (itself) might not buy Universal could be legal. Recall the issues with Apple Records. Apple Computer will have had to make a deal with Apple Records in order to buy Universal, or risk a law suit.

4. As one rumor site pointed out, it is important to consider the wording of Steve Jobs' statement:

"Apple has never made any offer to invest in or acquire a major music company. The press statements this morning attributed to Vivendi board member Claude Bebear are untrue, as Mr. Bebear has confirmed in a later report," said Steve Jobs, Apple's CEO.

Read the statement very carefully.
 
Originally posted by binaryDigit
One thing I don't reallly hear anyone saying is that perhaps Apple/Steve is only going to take a stake in Universal. They could buy 20% of the company, put Steve on the board (maybe even make him an officer) and create a much closer bond between the two companies. This way they can honestly say "We have not talked to Apple about the purchase of Universal" where purchase means the entire company. Apple could always have the option to take on more of the company at a later date. This again would be a much safer move than Apple tieing up huge amounts of cash (not that 20% would be cheap either)
Click to expand...

This is a very good point and one worth considering. In today's world, with ownership so often diluted, you could own a mere 5-10% of a company and effectively "own" it all. This comes from the fact that the rest of the ownership is so diluted as to be ineffective.
 
Originally posted by dixonbm
See my above comment.
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Yes I did see your post. The difference I was referring to was that you mentioned that Apple would go in cohoots with insiders to buy the company. I'm talking about Apple simply taking a large equity stake, no buyouts by anybody, perhaps some board/upper mgmt restructuring, but that's it. Plus large here being %20-%30, not half. This would give Apple some say in what's going on but keeps their investment (and risk) low. I don't think they want to spend any more than $1billion MAX from their war chest.
 
Originally posted by ccuilla
...
- Pixar (which Steve Jobs is both CEO AND owner)
Click to expand...

Actually Pixar is a public company, and thus is owned by thousands of people. He may be the majority shareholder, but that does not make him the "onwer".


2. As to Pixar's ability to buy Universal (a bigger entity)...this happens rather often. Look at Comcast buying AT&T Broadband, Qwest buying USWest, Worldcom buying MCI. Now these don't always work out well, but it DOES happen.
Click to expand...

Didn't mean to imply that it couldn't happen, it's just that for a smaller company to purchase a larger company often requires a lot of leverage (i.e. debt). Given that Pixar has a nice profitable little business and todays economic circumstances, I doubt that Pixars or Universals shareholders would see the benefit in doing such a transaction.
 
Originally posted by binaryDigit
Actually Pixar is a public company, and thus is owned by thousands of people. He may be the majority shareholder, but that does not make him the "onwer".
Click to expand...

True. But the point is still valid. I don't know if Steve owns ANY stock in Apple. He's had some options (unexcercised) and (perhaps) a SINGLE share of Apple (symbolic).

Secondly, if he owns more than 50% of Pixar...he owns it. No one else is able to override any of his decisions (legally). There are just others that share in the profits.
 
You guys are forgetting one thing about Pixar. They have Disney looking down on them and Disney distribution capabilities which include ABC, ESPN, ABC Family, etc. Think "American Idol" type of stuff but for ABC.

I think Pixar would be more viable than Apple because Steve Jobs has already formed a very good symbiotic relationship with Disney. Not to say he couldn't do it with Apple, it would seem to make more sense with Pixar though. They'd just be adding content for a new kind of media.

Hell, in 5 years what's to stop Jobs from becomin CEO of disney and buying out Apple and Pixar (with the universal music merger) and turning Disney into the next Sony Electronics? Afterall isn't that his goal to form a company as powerful and consumer oriented as Sony?
 
Can we kill this thread before it spreads, please?

What possible use would a 3D animation and technologies company have for a music publisher, etc?

At least the Apple purchasing theory has some credibility, Apple could act as a holding company, of sorts, and leverage Universal into its digital hub strategy (personally I'd like to see Apple enter more of the spaces that Sony plays in...)

However, this Pixar stuff is just garbage speculation, and the topic is misleading.

Rip
 
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