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Roy E. Disney Applauds Disney Acquisition of Pixar 

Two 'Narnia' versions to hit DVD in April 

Strings attached to Disney-Pixar deal 

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Disney lawyers ask Mobile judge to throw out copyright lawsuit

The 2005 Third Annual Radio Disney Music Awards

Pixar's Lasseter to Have Special Power at Disney: Greenlighting Movies

 

When Walt Disney Co.'s $7.4-billion acquisition of Pixar Animation Studios closes this summer as expected, Pixar's creative chief, John Lasseter, would be empowered to "greenlight" all feature animated movies at both studios, it was disclosed Thursday in a regulatory filing.

As is common in Hollywood, the ability to give a film the go-ahead comes with a caveat: Disney Chief Executive Bob Iger still would have final approval over anything set in motion by Lasseter, who would be chief creative officer at Pixar and Disney Animation, as well as at Walt Disney Imagineering.

In announcing the deal this week, Iger and Pixar Chief Executive Steve Jobs said Lasseter and Pixar President Ed Catmull would take the reins of Disney Animation from its leader, David Stainton. Catmull would report to Iger and Disney Studios Chairman Dick Cook, and Lasseter would report solely to Iger.

The filing with the Securities and Exchange Commission said the acquisition would be jeopardized if Iger, Lasseter or Catmull quit or died. The same would hold true if the majority of Pixar's seven directors and creative executives, including "Finding Nemo" director Andrew Stanton, "Monsters, Inc." director Pete Docter and "The Incredibles" director Brad Bird, left the combined company.

For the time being, at least, it appears that Disney has locked up Lasseter's services for only five years. In an interview transcript filed with the SEC, Iger said Disney would pick up the animation guru's current 10-year contract, which expires in 2011.

It is unclear whether Lasseter, the only Pixar senior executive with an employment contract, might be able to negotiate a longer and more lucrative pact if the sale goes through as expected.

The director of the "Toy Story" hits, "A Bug's Life" and Disney-Pixar's upcoming summer release "Cars" already is rewarded handsomely, with a $2.5-million salary and 5% annual increases. He also enjoys a rich package of stock options and bonuses based on the domestic performance of his movies. When he inked his 10-year deal in March 2001, he received a $5-million signing bonus.

Lasseter and Catmull, who would remain at Pixar's headquarters in Emeryville, Calif., were in Burbank on Wednesday to meet with Disney's animation troops. While there, Lasseter said a version of "Toy Story 3" that Disney set in motion last year without Pixar's input would be scrapped, according to a person familiar with the matter. More than 100 Disney employees have been working on the project for months.

According to the filing, if the deal goes through, Lasseter would sit on a new committee that would oversee feature animation at Disney and Pixar. The committee, which would include Jobs, Catmull, Iger, Cook and Disney Chief Financial Officer Tom Staggs, would approve all film budgets, oversee Pixar compensation packages and help maintain the company's creative "culture." The group is expected to meet at least once a month in Emeryville.

Under Disney's ownership, the SEC documents indicate, the traditionally free-spirited Pixar would retain its compensation philosophies and practices, including its refusal to grant employment contracts (other than Lasseter's). Pixar also would continue to give employee stock options, bonus plans, medical benefits and other policies for at least five years.

If it bails out on the deal, Pixar would be required to pay Disney a penalty of $210 million.

In the regulatory filing, Pixar sought to safeguard its independence as it joins the world's second-largest media conglomerate. The studio would continue to be called "Pixar" and the branding of its previous films and products "will not be altered." However, future films produced by Pixar would be branded Disney Pixar.

Perhaps most symbolically, the agreement guarantees Pixar a concession that costs nothing but means much to the people who work there.

Referring to the huge black-lettered logo that greets visitors as they approach the entrance to the studio's Bay Area compound, the agreement stipulates, "The Pixar sign at the gate shall not be altered."

Finding Nemo - Musical

Wilson Sonsini scoops role on Disney’s Pixar deal

 

California leader Wilson Sonsini Goodrich & Rosati has won the role opposite New York duo Skadden Arps Slate Meagher & Flom and Dewey Ballantine on The Walt Disney Company’s $7.4bn (£4.1bn) acquisition of animation company Pixar.

The all-share deal, the entertainment giant’s largest acquisition in 10 years, sees each Pixar share converted into 2.3 Disney common shares, valuing the tie-up at $7.4bn.

West Coast firm Wilson advised Pixar through heavyweight founder Larry Sonsini, as well as partners Sonsini Michael Ringler, Jose Macias and Marty Korman.

It is a further boost to Wilson Sonsini, which like many California firms was hit hard by the technology crash, as it emerges from the downturn with some major instructions. Notable recent deals include working on ARM Holdings’ $913m (£509m) purchase of US rival Artisan Components and Google’s landmark $2.7bn (£1.5bn) float.

Skadden and Dewey advised the company, with teams led by Los Angeles corporate partners Brian McCarthy and Joseph Giunta and New York-based chairman Morton Pierce respectively.

McCarthy told Legal Week: "We have worked on deals with Wilson Sonsini and Dewey Ballantine before and the negotiations were very smooth. We certainly benefited from Dewey Ballantine’s in-depth knowledge of Disney."

Both are long-term advisers to Disney, and notably in February 2004, Dewey successfully defended Disney against Comcast’s $66bn (£35.3bn) hostile bid alongside M&A boutique Wachtell Lipton Rosen & Katz.

The takeover will be closely watched because of previous tensions over distribution rights between the two companies. The agreement, which has included films such as Toy Story and Monsters Inc, was due to end later this year.

Roy E. Disney Applauds Disney Acquisition of Pixar

Roy E. Disney issued the following statement regarding the Walt Disney Company:

" Animation has always been the heart and soul of the Walt Disney Company and it is wonderful to see Bob Iger and the company embrace that heritage by bringing the outstanding animation talent of the Pixar team back into the fold.

This clearly solidifies the Walt Disney Company's position as the dominant leader in motion picture animation and we applaud and support Bob Iger's vision."

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Pixar deal: What Disney gets 

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Disney litigants fault judge over Ovitz case 

Imagineers traveled far for Everest's details 

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Walt Disney World Triathlon open for registration 

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Epcot's Inferno barge testing and return date set 

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Disney Magic all set to charm little ones

Pixar Creative Chief to Seek to Restore the Disney Magic

 

If Wall Street has been fascinated by the pas de deux featuring Robert A. Iger of the Walt Disney Company and Steven P. Jobs of Pixar Animation Studios, animators have been transfixed by someone else caught up in the dance: Pixar's creative leader, John A. Lasseter, who will now face the challenge of reviving Disney's weakened animation unit without losing the magic at home.

In announcing their planned merger Tuesday, the two companies said Mr. Lasseter would be chief creative officer of the combined animation operations, while Pixar's president, Edwin E. Catmull, would become president.

"It's energizing and great fun to have John as a part of that creative process in any camp," said Richard W. Cook, the chairman of Walt Disney Studios, in an interview from his Burbank office Tuesday. "And having Ed Catmull's calm, very smart direct leadership is going to do nothing but help make us do good things."

Of the departing president of Walt Disney Feature Animation, David J. Stainton, Mr. Cook said, "I think David will stay with the company and do some great things here. He's a creative guy with a fabulous business sense, and I know we're going to be able to find something good for him."

Given the performance of the two companies - Mr. Catmull and Mr. Lasseter have overseen six consecutive blockbusters, from "Toy Story" to "The Incredibles," while Disney has had to make do with "Chicken Little" and "Home on the Range" - it seems likely that Disney may receive a much-needed re-education.

"John Lasseter is probably the most respected single person in American animation," said Kevin Koch, president of Animation Guild Local 839, the Hollywood animators' union. "He's a creative leader without being overbearing or over-controlling."

Mr. Lasseter, 49, has been seen by animators as an innovator who honors the fundamentals. Much like the late Walt Disney, his trademarks are well-told, broadly appealing stories, technological advances, interesting characters and a quality that has been conspicuously absent from many recent American films: heart.

"For many of us at Pixar, it was the magic of Disney that influenced us to pursue our dreams of becoming animators, artists, storytellers and filmmakers," Mr. Lasseter said in a statement. In an earlier interview at Pixar, the Los Angeles-born Mr. Lasseter said his love affair with cartoons began when he saw Disney's "The Sword in the Stone" as a boy.

In person, Mr. Lasseter is an outgoing, slightly harried man who invariably appears in his trademark Hawaiian shirts and jeans, and speaks with contagious enthusiasm. He was the second student chosen for the nascent character animation program at California Institute of the Arts in Valencia and spent four years studying with veteran Disney artists. His animated films "Lady and the Lamp" and "Nitemare" won Student Academy Awards.

After graduating in 1979, Mr. Lasseter spent five years at Disney, working on "The Fox and the Hound" and "Mickey's Christmas Carol." After seeing the pioneering "Tron," he and a fellow animator, Glen Keane, made a 30-second test on based Maurice Sendak's "Where the Wild Things Are" that suggested how traditional hand-drawn animation could be combined with computerized camera movements and environments.

In 1983, Mr. Catmull, who then worked at Lucasfilm, invited Mr. Lasseter to visit the company's computer graphics unit. In 1984, Mr. Lasseter left Disney for Lucasfilm, and "a one-month project ended up a permanent position," he said in a 1999 interview.

At Lucasfilm, Mr. Lasseter directed his first computer-generated short, "The Adventures of André and Wally B." (1984). But it was the Oscar-nominated "Luxo Jr." (1986) that demonstrated the potential of computer animation as a storytelling device. A 90-second tale about a rambunctious little lamp and its slightly weary parent, "Luxo" was the first computer animated film in which the characters appeared to think.

A series of shorts that culminated in the Oscar-winning "Tin Toy" (1988) served as a ramp-up to "Toy Story" (1995), much the way Walt Disney used the "Silly Symphonies" to prepare his animators for "Snow White and the Seven Dwarfs" (1937).

Among the questions Mr. Lasseter will join Mr. Catmull in facing at Disney - where he will also be principal creative adviser to the theme parks' Imagineering unit - is how to handle the question of sequels to the Pixar hits, a source of tension between Mr. Jobs and the former Disney chief executive, Michael D. Eisner.

Pixar had been reluctant to proceed with sequels under its previous deal with Disney, but Disney had the right to make sequels if Pixar declined. Disney went so far as to set up a studio to work on those sequels - an operation called "Pixaren't" in animation circles. Some had speculated that the unit would be shut down if Disney and Pixar made peace.

Mr. Cook said that "it's probably a little premature to say what's going to happen there. We'll wait until Ed and John have a chance to come down and see what's going on. Clearly anything that John wanted to do, we would want to do with him."

A broader question concerns management style, and whether Mr. Lasseter will bring some of the freewheeling spirit of Emeryville, Calif., where Pixar has its headquarters, to a culture where animators have long complained that vice presidents, creative executives and other business managers have gotten in the way of creativity since Disney's fortunes peaked with the release of "Aladdin" and "The Lion King" more than a decade ago.

Another the hotly discussed question among artists has been whether Mr. Lasseter - despite having made Pixar's fortune with a brilliant series of computer-generated hits - will bring back the traditional 2-D animation on which the Disney empire was built. Mr. Lasseter and other Pixar artists are known for their enthusiasm for the classic Disney films, and for the drawn features of the Japanese director Hayao Miyazaki.

Mr. Cook commented, "I've talked about reviving 2-D with John for some time, it wouldn't surprise me at all if these a project emerged that we would want to do in 2-D."

"To a lot of animators, John is kind of a King Arthur figure who represents the classic storytelling Disney was known for when Walt was alive," said the animator Pres Romanillos, whose work includes the evil Shan Yu in "Mulan."

"In many ways, he created the C.G. age and he's the one who can bring back traditional animation. And if he does, ask him if he wants my résumé."

Disney denies report that Iger evaluation quashed

Walt Disney Co. (DIS.N ) on Thursday denied a report that Chairman George Mitchell quashed a negative evaluation last year of then-Chief Operating Officer Robert Iger, while Disney was searching for a replacement for outgoing CEO Michael Eisner.

The newspaper, citing sources familiar with the matter, said the evaluation, conducted by executive search firm Heidrick & Struggles, was never brought to the board of directors.

A Disney spokeswoman called the New York Post report "categorically untrue."

At the time, the board was under pressure from dissident shareholders led by Roy Disney who claimed the search for Eisner's replacement was not thorough. Iger was ultimately named CEO and Roy Disney buried the hatchet with the company his uncle founded.

Earlier this week Disney said it would buy Pixar Animation Studios for $7.4 billion in a deal that would make Pixar CEO Steve Jobs one of the largest shareholders of Disney.

Pixar deal: What Disney gets

Walt Disney's $7.4 billion acquisition of animation partner Pixar raises two important questions.

First and foremost: What can Pixar do for Disney as a subsidiary of the media giant that it doesn't already do as a creative partner? The two companies, after all, have already collaborated on a number of wildly successful animated features, including Toy Story and Finding Nemo. And any acrimony between the two firms appears to have gone away with the retirement of former Disney chief executive Michael Eisner, whose relationship with Pixar CEO Steve Jobs could best be described as rocky.

Disney's new CEO Robert Iger tried to answer this question yesterday after the blockbuster deal was announced. In prepared remarks, Iger, who replaced Eisner last October, noted that "the addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses."

Iger said "this investment significantly advances our strategic priorities, which include – first and foremost – delivering high-quality, compelling creative content to consumers, the application of new technology and global expansion to drive long-term shareholder value."

"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," added Jobs. "Now, everyone can focus on what is most important, creating innovative stories, characters, and films that delight millions of people around the world."

What's more, Disney gets talent – and not just in the form of Jobs, who becomes Disney's biggest individual stockholder and a member of Disney's board of directors. Pixar President Ed Camull will become the president of the new joint Pixar/Disney animation studio. And Pixar Executive Vice President John Lasseter will become the chief creative officer of Disney's new animation team.

But an even more important question might be: What does this deal mean for the other company Steve Jobs runs: Apple Computer?

Well before Disney's acquisition of Pixar, it struck a smaller partnership with Apple in which some of its ABC television programming would be resold to iPod users through Apple's iTunes digital media service.

Speculation on Wall Street is rampant that with Jobs on Disney's board, Disney will climb even further in bed with Apple, using the ubiquitous iPod as another delivery channel for Disney's content.

How long before Jobs runs Disney?

Even in the pre-iPod era, Jobs was already a bona fide media star. Everybody except Amelio knew that Jobs would end up back on top, and it only took a half year before the Apple co-founder became CEO. The prodigal son had returned home for good.

Disney CEO Bob Iger is a decidedly different type of corporate animal, and his company is hardly the serial screwup that Apple was in the prolonged twilight of the Sculley-Spindler-Amelio era.

In his public comments today, Jobs dismissed suggestions that Disney's Pixar buy was akin to letting the fox into the henhouse. He mugged for the cameras, saying the deal is only about Pixar buying into Iger's vision of where he wants to take Disney, along with the man's understanding of animation.

Is that the full story line? If so, central casting should be calling for a rewrite.

To be sure, Jobs does have his hands full keeping Apple on track. And Iger does legitimately want to transform Disney. Last year Disney became the first big content company to push content through Apple's iPod. Now Iger will be seeking out ways to distribute Disney-Pixar content through the iPod and any other digital devices coming up from Apple.

But pardon my sarong if I don't believe everything Jobs says. He is an executive of rare accomplishment. He also is a practiced corporate finagler with large ambitions.

As long as Disney's earnings-per-share continue to climb, there's no pressing reason for Jobs to enter the picture. But we're talking about a legendary entrepreneur with a unique understanding of both the computer and entertainment industries.

If Disney falters, will Jobs be able to resist the temptation to meddle? If Iger fails to deliver, would Disney's board be able to ignore the presence of a superstar CEO waiting in the wings (not to mention one who will become Disney's largest shareholder)?

In recent years, the company's mediocre performance has tested the patience of Disney shareholders. In 2004, a full-blown revolt led by Roy Disney, nephew of founder Walt Disney, and fellow board member Stanley Gold, ultimately led to the ouster of Michael Eisner as CEO. Now that investor expectations have again been raised, disappointments will go down extra hard.

Disney litigants fault judge over Ovitz case

A lawyer for Walt Disney shareholders has told the Delaware Supreme Court that a lower court judge erred when he absolved Disney directors in the firing of Michael Ovitz as president, a dismissal that cost the company $130 million in severance pay.

At a hearing Wednesday before all five justices, the lawyer, Steven Schulman, said that the trial court erred in its 174-page decision in August by failing to conclude that the board acted with gross negligence in the 1996 firing or that its abdication of duty was "conscious and in bad faith."

The pivotal legal issue in the appeal is the esoteric "business judgment rule." In its simplest form, the rule says directors are free to make unwise decisions without court interference, but not uninformed ones.

Schulman also criticized the trial judge, William Chandler III, for having accepted the "self-serving testimony" of the directors as evidence of their good faith.

"The trial court's decision shows that even a board that decides to take an 'ostrich-like' approach to making a business decision is immune from monetary damages if the director defendants testify that they acted in that manner in 'good faith,"' Schulman said in court papers.

The lawyer offered as an example of the board's gross negligence its decision to fire Ovitz after one year without cause, a move that made Ovitz eligible for his severance deal.

Schulman said there was adequate cause in the testimony of the former chief executive, Michael Eisner, who had hired Ovitz as president. Eisner testified that Ovitz "lacked veracity, he was a liar, there were morale problems," Schulman told the court.

But a lawyer for a group of directors, Greg Williams, defended the ruling, saying that the fact-finding process in Chandler's court was "meticulous and fair."

His comments prompted questions from the bench. Chief Justice Myron Steele asked, "Should we ignore the rule of law," no matter how "careful the fact-finding?"

Justice Henry duPont Ridgely asked whether the directors "could have been a little tougher in negotiations."

And Justice Jack Jacobs questioned the failure of the Disney compensation committee to fully inform the board about the consequences of a nonfault termination of Ovitz.

Eisner's lawyer, Gary Naftalis, rejected the plaintiffs' argument that the business judgment rule did not apply to nondirectors, citing legal scholars who believed it did.

Lawrence Hamermesh, a visiting professor at the University of Pennsylvania, said in an interview: "The courts have regularly invoked the business judgment rule in evaluating claims against officers.

And the courts have applied it and defendant officers have won because of it. But on the other hand, the analysis in those cases is not that deep, and the Delaware Supreme Court has never squarely ruled on it."

Imagineers traveled far for Everest's details

The Nepalese Coke bottles, pot-bellied stoves and a few Buddha statues are real, imported from Asia. The tattered handbills and intricate woodwork are handcrafted, in some cases by Himalayan artisans, to meet Disney's needs. The 200-foot-high mountain range and robotic abominable snowman are designers' dreams brought to reality.

Detail is what people get for the kind of money Walt Disney World spent building Expedition Everest, the new mega-ride at Disney's Animal Kingdom.

The ride is the combination of a story attraction -- about the Abominable Snowman known in the Himalayas as the yeti -- with a roller coaster known at Disney as a runaway train.

"Detail is there to make you believe in the reality of the story you're immersed in," said Joe Rohde, lead designer of Animal Kingdom. "You need to not think, 'Wow, that rock looks realistic.' You need to think, 'That is a rock.' Detail at the Everest level is there to define 'You're not in Kansas anymore.' "

The ride made its media debut Tuesday and will be open to Disney's seasonal and annual passholders Thursday through Sunday. Next month it will be open intermittently to all Animal Kingdom customers, though an official grand opening won't come until April 7.

Disney won't say, but outside observers estimated that the company spent $100 million. That sort of money could buy four big, traditional roller coasters like the Top Thrill Dragster that opened at Cedar Point in Ohio in 2003. It also could pay for seven elementary schools in Orange County, or two F-117 stealth fighters, or four miles of the new Western Beltway Expressway that's soon to connect to Disney.

Disney is counting on its investment buying the kind of thrilling, big attraction that people put on their must-try lists when they're planning vacations, much like Epcot's Mission: Space, Disney-MGM Studio's Tower of Terror or Magic Kingdom's Space Mountain. That could put Animal Kingdom more on par with the other parks, encouraging more full days' visits.

"It's intended to bring a lot more capacity and a lot of thrills to Animal Kingdom, and really help round out the experience at Disney's Animal Kingdom," said Mike Lentz, vice president for new business initiatives at Walt Disney Imagineering, the division responsible for creating new attractions.

It's also becoming the new symbol for the park. The mountains can be seen from most of Animal Kingdom and for a distance away. Its image is showing up on park promotional banners and materials, and will be broadcast onto the side of a Times Square hotel in New York in mid-February.

In the creators' minds, Everest began four years ago as a yeti attraction, or at least as a vague idea of one, long before anyone decided to put a roller coaster into it, said Rohde, executive designer and vice president, creative, for Walt Disney Imagineering.

He and other Disney designers took several trips to Nepal, Tibet and China to research the legends and reported sightings of the beast, which locals say protects the mountains. They also studied Himalayan life, architecture and customs, and began accumulating artifacts.

Rohde said the trips also supported and developed conservation efforts in the region, which Expedition Everest promotes within displays. The trips and the conservation efforts will be explored in a show titled Expedition Everest: Journey to Sacred Lands that will be broadcast on the Travel Channel, premiering the week of April 9, just after the ride's grand opening.

"It's an adventure," Rohde said of the ride. "I mean I spent a lot of time in the Himalayas and over the years have come to know them very well. I would say most important is the first sense you have in a place like that, and that is the sense of being on an adventure."

Except for a shadow appearance early in the ride, the yeti appears for no more than three or four seconds near the end of the ride, growling and lunging at the train as it passes underneath his perch.

It's one of the most complex details in the ride. To make it quick and nimble, the yeti is powered with enough motors and hydraulic cylinders to produce 259,000 pounds of thrust, more instantaneous power than a 747-400 airliner, according to Disney.

Disney runs up to four trains at a time through the attraction, each holding 34 passengers.

The queuing area, which winds through a mountain trek tour office, a trekkers' supply shop, a yeti and conservation museum, and a train station in a base village, holds an hour's worth of people, Lentz said.

Longer lines may come.

When Disney employees and their families tried out Everest last weekend, the lines extended out the door and far down the sidewalk, Disney officials said.

The Brensinger family from Allentown, Pa., was among a handful of Disney patrons invited to try out Everest Tuesday morning.

The Brensinger boys, Brian, 13, and Donnie, 14, loved when the coaster raced backward, downhill, through a dark and misty tunnel. Their father, Don Brensinger, loved when the yeti appeared, surprising him. The boys' grandmother, Dot Brensinger, said she just loves coasters, particularly this one.

But did they notice the yeti's story as it developed while they wandered through the little Himalayan village?

"No," Dot Brensinger said, while her son and grandsons agreed.

The ride itself is just shy of three minutes. That's about a minute longer than most roller coasters across the nation, said Steve Gzesh, spokesman for the American Coaster Enthusiasts.

If people don't notice the yeti story, Disney shouldn't worry, he predicted.

"That's not uncommon for Disney rides. You have to ride it several times to take in all the detail," Gzesh said. "That's why you want to go on rides over and over again."

Euro Disney Revenue Up 3.7 Percent in 1Q

French theme-park operator Euro Disney SCA said Thursday revenue rose 3.7 percent in the company's first quarter due to higher occupancy rates and spending at its hotels and Disney Village.

Revenue between October and December came to 269 million euros ($331 million), compared with 259 million euros a year earlier.

Euro Disney, whose largest shareholder is the Walt Disney Co., was reporting revenue for the first time under International Financial Reporting Standards.

Revenue at Euro Disney's hotels and Disney Village also rose 3.7 percent to 100 million euros ($123 million) in the first quarter. The hotels had higher occupancy rates, and average spending per visitor rose, led by restaurant revenues.

Theme park revenue inched up 2 percent to 140 million euros ($172 million), as the two parks, located outside of Paris, attracted more visitors.

The unprofitable theme park operator underwent a major debt restructuring last year, and said that it doesn't expect to be profitable for several years.

Walt Disney World Triathlon open for registration

Only one triathlon offers serious competition with a splash of world-class entertainment -- a combination that makes the 2006 WALT DISNEY WORLD Triathlon Weekend, in one word . . . magical. Athletes will exhilarate the body and mind as they swim, bike and run through the WALT DISNEY WORLD Resort in this USA-Triathlon sanctioned event. This event consists of a 1.5km swim, a 40km bike ride and a 10km run.

For more info, visit www.disneyworldsports.com

Disney cruise ships make top 10 list

The Disney Magic and Disney Wonder cruise ships, both of which sail from Port Canaveral, are among the top 10 overall cruise ships chosen by cruise travelers who use the CruiseCritic.com Web site.

The top-ranked ship on the list, the Radisson Seven Seas Mariner, is based in Fort Lauderdale and Los Angeles and calls at Port Canaveral.

Ranked second was the Disney Magic and, in a five-way tie for third place, was the Disney Wonder. The other third-place ships include Royal Caribbean's Navigator of the Seas, MSC Opera, the Norwegian Jewel and the Tahitian Princess.

The survey by CruiseCritic allows cruisers to rate ships and see instant results, including comments from other cruisers. Other categories include best picks for cabins, dining, embarkation, entertainment, fitness, public rooms, service, value for money and excursions.

Epcot's Inferno barge testing and return date set

The Inferno barge from Reflections of Earth at Epcot is set for night time testing this week, leading to a return in the show on February 1st 2006. Date subject to change.

Will Jobs' new Disney role cause conflict?

When Steve Jobs announced the $7.4bn merger of his Pixar Animation Studios with Disney on Tuesday, he said the two companies could finally move beyond their "two separate sets of shareholders and two different agendas."

But in fact, there are three companies in that equation. Left mostly unsaid throughout the merger celebrations was exactly how Jobs would balance his new role as board member at Disney and his job as chief executive of Apple.

As Apple has moved into video distribution -- using Disney content as its first centrepiece -- those two companies' fates have become increasingly entwined. Some corporate governance experts say that puts Jobs in a deeply uncomfortable position, particularly as Apple and its rivals seek to distribute Disney and Pixar films online.

"It's like sitting on both sides of the table when negotiating," said B. Espen Eckbo, the director of the Center for Corporate Governance at Dartmouth University's business school. "The only issue is whether the degree of conflict of interest is large enough to raise a red flag."

This kind of interlocking board of directors is far from rare, but the phenomenon remains a serious concern for the advocates of corporate reform who have gained influence since the costly collapse of companies such as Enron and Worldcom in the early part of the decade.

No one argues that Jobs, Disney or Apple fall in the same category as companies whose executives have been indicted for fraud. But the worry is that Jobs -- soon to be the largest Disney shareholder, along with his 1 per cent share of Apple as chief executive -- is taking on the difficult task of representing two separate sets of shareholders whose interests may not always be identical.

The most obvious flash point will be the development of Apple's iTunes video business. Jobs and Disney CEO Bob Iger launched this new service together late last year, with Disney-owned ABC Television content such as Desperate Housewives and Lost.

Though Apple has not disclosed its future plans for the service, it is widely expected to seek an expansion of the video service to provide feature films as well as television shows and music videos. The ability to distribute classic Disney and Pixar films to the video iPod or other future Apple devices would represent a coup for the computer company.

"The big picture is that obviously Apple is going to try and make an assault on the living room in 2007 and they need to increase the amount of content they are selling in order to make it work," said Piper Jaffray analyst Gene Munster.

Indeed, in a press conference on Tuesday, Jobs was optimistic about the ability of the new Pixar-Disney match to distribute its content increasingly to new devices, although he stopped short of mentioning Apple or the iPod by name.

"The opportunity for viewing these films, both on televisions and other types of devices, is huge," Jobs said. "If we can make great animated films that really affect the culture, there is going to be a strong demand from younger family members to watch them many, many times in many places, on probably many devices."

Jobs may also be in a position to gain knowledge about his competitors such as Microsoft, with which Disney has intermittently had a close working relationship on issues such as digital rights management and digital content delivery.

Disney also has a long-term technology agreement with HP, in which the computer maker provides the studio with a wide range of hardware. The two have done extensive marketing work as part of the pact, which HP inherited as part of its Compaq Computer buyout. In 2003, HP extended the Disney deal for an additional ten years.

For now, Disney says Jobs may take himself out of the stream of discussion for this kind of sensitive issue.

"If there are occasions when the board deals with company business with Apple, appropriate steps, which may include recuse, will be taken to ensure that conflicts of interest are avoided," said Disney spokesman David Caouette.

Not all corporate governance experts are worried about this dual Jobs role.

Paul Lapides, director of the corporate governance centre at Kennesaw State University in suburban Atlanta, said he expects conflicts, but he predicts that Disney and Jobs can manage them. In some cases, that may mean Jobs will have to refrain from voting, while in other instances he may have to recuse himself entirely from particular discussions.

"One of the important things is for the board to address these conflicts head-on and not be Mickey Mouse with the situation," Lapides said.

To some extent, it's an area both companies have practice in addressing, and for which both have come under criticism previously.

Apple, for example, was cited in a 2002 Business Week article as having one of America's worst boards, a rating that included measures such as the presence of an independent auditor, or financial ties with outside directors. Disney was on the magazine's list of bad boards several times in the 1990s.

In 2002, Apple shareholders put forth a measure to require that the company's compensation and nominating committees be made up entirely of independent directors. The shareholders also wanted to exclude directors who were significant Apple customers or executives at companies on which Jobs sits as a director. At the time, Apple's board members included Jerome York, then-CEO of large Mac dealer Micro Warehouse and Gap's then-CEO Millard Drexler. Jobs, at the time, was on Gap's board of directors.

He later left Gap's board, and Apple added former US Vice President Al Gore as another independent director. York and Drexler remain on Apple's board, but both have new posts, York as a venture capitalist and Drexler as CEO of J. Crew. Apple's former CFO, Fred Anderson, is also on the company's board, along with Jobs and Intuit chairman Scott Cook and Genentech CEO Arthur Levinson.

After long criticism by shareholders, Disney's board of directors was reformed in 2003, reducing the total number of directors from 17 to 13 and giving outside, or so-called independent, directors more power. Jobs, a new 14th board member, will be counted as a nonindependent, or someone with ties to companies that have financial dealings with Disney, the companies said on Tuesday.

That qualification helps, but it doesn't eliminate concerns, Dartmouth's Eckbo said. Eckbo is one of a group of governance experts who have called for stricter rules that guard against conflicts even if there are some costs to the companies. Regardless of how strong they might be, efforts to keep Jobs out of decisions that affect Apple are unlikely to be perfect, he said.

"That comes down to whether those efforts are actually feasible," Eckbo said. "The fact that Jobs leaves the room when they talk about Apple doesn't mean that he doesn't have an influence on the outcome of the conversation."

Apple adds Disney animations to iTunes films for sale

Apple this morning added ten classic short Disney movies to iTunes Music Store.

These include pre-war animated classics featuring all the world-famous Disney characters, such as "The Ugly Duckling", Goofy and others.

The move follows the news that Pixar and Disney have reached a deal to combine. The movies seem set to be made available through a new "Short Movies" option on the store, which replaces the "Pixar" option there before.

On Apple's US Music Store it states: "Laugh along with Mickey, Donald, Goofy and a host of classic Disney characters in this magical collection of celebrated animated shorts. All Academy Award winners or nominees, these ten wonderful Disney cartoons are now available for download exclusively on iTunes."

Disney kicked off career of animation's Mr. Incredible

He's known in the animation industry as the real Mr. Incredible.

John Lasseter, the creative force behind Pixar's megahits such as The Incredibles, Toy Story and Finding Nemo, has a reputation as the man with the golden touch. Now that he's the newly named chief creative officer for Disney animation studios, the hope is that some of that magic will rub off on Disney's sagging movie division.

The post is a long way from Lasseter's first job with Disney: While in school at the California Institute of the Arts, he held a job as a "sweeper" at Disneyland, where "he picked up cigarette butts," says famed animator John Musker, director of The Little Mermaid, and also Lasseter's suitemate at CalArts.

But Disney gave Lasseter much more than spending cash: At CalArts, he studied under Disney animators. He graduated in 1979 and soon landed a job at the Burbank media giant.

Industry peers and animation-industry observers say it was that training that led Lasseter to become a pioneer of computer-graphic movie animation.

"John has brilliantly applied the fundamental ideas he learned at Disney — that the characters and the story line are the most important things," says Aaron Berger of Quattro Media, which represents animation artists and producers. "Then, instead of looking at computer graphics as a technology, he used it as a storytelling tool."

Lasseter couldn't be reached for comment, but those who know him say some of his real-life experiences have also played an essential part in his moviemaking decisions.

"He has an affinity for vintage cars," says Jorgen Klubien, who went to school with him at CalArts and worked with him at Pixar. "That's probably what prompted him to green-light Cars as a film."

And his zeal for autos likely wasn't the only influence for the movie, which is to be released in June. "John's dad was a salesman for Chevrolet," says Klubien, adding that Lasseter's mother was an art teacher.

Maybe that's why Lasseter's artistic talents came through early — at age 5, his crayon drawing of the Headless Horseman reaped him a $15 prize from the Model Grocery Market in Whittier, Calif.

But it as at CalArts that he really made his mark.

"John was a talent way back then," says Klubien. "He won student awards and was on Disney's radar as a potential talent."

He also had an eye for spotting other creative stars. At CalArts, he was impressed by the drawings of another student: The Nightmare Before Christmas director Tim Burton.

"John has an instinctive eye for talent," says Musker.

And a Pied Piper-like appeal has helped him bring big-name talent to Pixar, including Brad Bird, who directed The Incredibles. "Lasseter is one of the greatest-living storytellers, and he's able to use his magic wand to (hire) the likes of Bird," says Berger. "People are now as attracted to working with Lasseter and Pixar as they were about working at Disney."

Part of the attraction for animators is that Lasseter has fostered an open, easy atmosphere at Pixar.

"Our business is about creating these big teams that work together over (a long) time," says Klubien. "So it's important that there are some elements of fun."

Dick Cook, chairman of Disney's studio division, says he's confident Lasseter will bring that to Disney.

"Part of his unbelievable charisma is that people are attracted to him because he's so much fun," Cook says. "He's just a big kid. He loves toys, he loves to play games, he loves to watch good movies. He is the ultimate consumer."

And a character creator.

Musker recalls walking through Disneyland in their CalArts days with Lasseter and Lasseter's college girlfriend, Sally. Sally said to them, " 'Just think, some day there will be characters walking around this park from what you guys create,' " Musker says. "And lo and behold, she was right."

Dizzying heights and speed -- 'woo-hoo'

The signs are everywhere.

"Beware the Yeti."

The cryptic warning is printed on tattered leaflets plastered around the tiny Himalayan village of Serka Zong, and it seems serious.

The mythical Abominable Snowman, that hulking guardian of the misty mountains, has re-emerged to drive unwanted visitors from his snowy domain. The beast already has attacked a party on its way to base camp. The evidence is on display in the local museum -- mangled climbing equipment, a shredded tent and canteens with teeth punctures.

But there's no turning back. You have a ticket aboard a rickety supply train bound for Mount Everest base camp, and there's an open seat with your name on it.

Have no fear, this is Expedition Everest, Disney's new "family thrill ride" at Animal Kingdom.

Trip down the mountain

Disney describes this new attraction as a "perilous journey aboard a runaway train through the Himalayan mountains."

I'd call it a pumped-up mix of Space Mountain and Big Thunder Mountain Railroad with a furry audio-animatronic Muppet lurking somewhere inside. A ride that blends disorienting darkness with dizzying heights and speed thrills for a trip that's equal parts "ooh-ahh" and "woo-hoo."

By Central Florida coaster standards, Expedition Everest is a dip in the kiddy pool. But it does offer a few twists and turns that make it a worthwhile addition to the Mouse's "Nahtazu."

More than 8,000 props

The fictional mountain village of Serka Zong is Disney magic at its best.

Frayed Buddhist prayer flags flutter in the breeze, strung from artificially aged buildings distressed with gritty developing-world flavor, right down to the haphazard vines of electrical wires snaking along the eaves.

And the set dressing only gets better when riders enter the queue. I'm told there are more than 8,000 props decorating the series of interconnected rooms, a few of which are air conditioned. I didn't count that high, but I did find enough interesting details that I might not mind waiting in line -- for very long, anyway.

The nearly 200-foot-tall faux Everest looks convincing too, thanks to a cool forced-perspective effect that makes the famed peak seem far off in the distance. Just don't study it too carefully on your drive into the parking lot, because the backside of the mountain is conspicuously un-imagineered.

Thankfully, the really good stuff is all inside.

Surprises along the way

I don't want to give too much away, so I'll just say that Expedition Everest hides a few great surprises.

The open 34-person cars secure riders with only a lap bar, so there's plenty of movement in your seat. And that visceral feature, something I love about old-school wooden coasters, makes the maneuvers to come all the more potent.

Once over the climb hill, there's a blind backward run through the dark, an 80-foot drop that rockets riders back into bright daylight and a high-speed double spiral that generated enough G-force to pin my skull to the headrest.

And that's all before you encounter the "Yeti."

Yes, it will find you.

And it's definitely a close encounter.

Josh Hutcherson and AnnaSophia Robb have already been cast as two classmates who, because of their outsider status, create the world of Terabithia, an imaginary kingdom filled with giants and trolls and all manner of magical beings. Deschanel is the kids' teacher, whom they admire.

The film is based on Katherine Paterson's 1978 Newbery Award-winning book.

Deschanel recently completed shooting the role of Casey Affleck's love interest in the Brad Pitt vehicle "The Assassination of Jesse James by the Coward Robert Ford." She returns to theaters February 17 in the indie "Winter Passing."

Bambi II Clips on Official Website

Visit the official website Bambi II for clips and images from the direct to video sequel which hits stores February 7th.

LINK

"Toy Story 3" Project Scrapped?

With the Disney/Pixar deal now in place, the question becomes what will happen to the various sequels based on Pixar's work that Disney had in development - most notably a third "Tory Story" feature.

According to Coming Soon and a post at Animation Nation, Pixar heads turned Disney bigwigs Ed Catmull and John Lasseter "announced to Feature Animation employees [Tuesday] that the 'Toy Story 3' production will end effectively [Tuesday]. They said that sequels should only be made if there is a really great story that demands it, and should be the domain of those who created the original film."

An Associated Press article confirmed said news - "One immediate sign of Lasseter's influence is that plans for Disney to make the long rumored sequel "Toy Story 3" on its own have been scrapped. If the film is made, it will be done by Lasseter and the other creators of the original film, the companies said".

Bradley Raymond was announced as director of the film in which Buzz Lightyear would have been recalled to Taiwan after a series of malfunctions. Learning of a productwide recall, all the toys in Andy's room, under Woody's leadership, were to head to Taiwan to save Buzz from doom.

Disney Magic' all set to charm little ones

Guess who flew in the city on Wednesday? With a bagful of fantasy, funs, giggles out popped Mickey Mouse himself and accompanying him wearing a big white and red polka dotted skirt was his lady friend — Minnie. And as the two are on tour of India, how could they leave behind Mickey's ... tall or shall we say `funny' dog friend Goofy.

So the entire gang is here, right in the twin cities to present a musical extravaganza Disney Magic, where these characters will dance, sing and rip up loads of fantasy stories just for the children of the city. You can catch them at Spencers Hyper Mart, Musheerabad on January 26 at 2.30 p.m.

And if you thought it's just the Disney legends in the city of Charminar, watch out for Donald Duck in his characteristic blue sailor suit trying to save himself from Chip n Dale, the two naughty chipmunks.

This first-ever live performance by Disney characters is part of Disney channel's initiative to get their viewers in India up and close with their favourite cartoon characters.

India is the first country where Disney Magic has arrived as part of their six-nation tour in Asia Pacific region.

Disney's Pixar Buyout A 'Near-Perfect Strategic Fit' 

Pixar fans rail against Disney buyout 

Wall Street eyes box office to judge Disney-Pixar 

Disney holders ask court to reverse pay ruling 

Jobs to Become Major Hollywood Player 

Changes to Pleasure Island 

Silk, Broken Bricks, and Magic 

Tarzan Rocks now closed and construction work underway 

Walt Disney Pictures' Roving Mars Presented as a Public Service by Lockheed Martin 

Reflections of Earth Inferno barge to return 

Flightplan

Disney's Pixar Buyout A 'Near-Perfect Strategic Fit'

 

Merrill Lynch research analyst Jessica Reif Cohen maintained a "buy" rating and $31 price target on The Walt Disney Co. after the media giant said it would acquire Pixar Animation Studios for $7.4 billion in an all-stock deal announced late Tuesday.

"We view the Disney-Pixar combination as a near-perfect strategic fit," wrote the analyst in a research note Wednesday. "Pixar's family-oriented content meshes well with Disney's brand and is an important cog in its theatrical/home video distribution, theme parks and consumer products divisions."

The analyst said a buyout of Pixar was "unimaginable" just one year ago and "underscores how quickly Disney CEO Bob Iger has put his imprint on Disney."

Still, the analyst estimates that the acquisition will be 3% dilutive to Disney's fiscal 2008 earnings, a more conservative estimate than that of Disney (nyse: DIS), which estimates that the acquisition will be accretive by that time.

The difference could be explained by different assumptions on how many films Pixar (nasdaq: PIXR) will make in 2008, said Reif Cohen.

Reif Cohen maintained a $31 price target on Disney shares. "The Pixar acquisition filled a major strategic gap for Disney and reinforces the company's commitment to focus its resources on content production," she said. "Given the strength of its assets, we have confidence Disney can continue to demonstrate significant growth over the longer-term."

Disney has not returned a call for comment.

Pixar fans rail against Disney buyout

Sure, the peanut gallery had fun with Walt Disney Co.'s $7.4 billion purchase of Pixar, but it's no laughing matter for Nemo and Woody fans everywhere that rue the day they claim the Mouse House killed Pixar.

Take DIY1 on Yahoo: "All the nights spent sleeping at Pixar so you could make Pixar the 'legend' that it is has been wasted. Cheer up, I hear you get a free Mickey Mouse hat when you officially become a Disney employee.

"I'm sure you all dreamed that someday you'd be working for Disney. Oh, that's right, You probably all had a chance to work at Disney and didn't even apply there," he added.

The fact that Pixar shares rallied and Wall Street cheered the news did little to lighten the mood in cyberspace.

Isbat1, like so many of his virtual cronies, had a flare for the dramatic on Fark.com when he said the high-profile marriage could be "the worst thing that ever happened" to the entire movie industry.

"Pixar was the only company left producing films that were original, innovative and entertaining," he posted. "They paid attention to story in a way that restored my faith in script writing as a craft. Meanwhile, Disney has proven itself to be wholly antithetical to Pixar."

Antithetical and poisonous, according to Krizalid: "I'm not going to claim any sort of unique insight on this one, but mark my words: Disney will run Pixar straight into the ground, like they have all their other properties recently."

TinRobot agreed: "Disney owns too many things and has destroyed most of them."

The Pixar camp clearly wasn't soothed by Disney Chief Executive Robert Iger's red-carpet greeting: "With this transaction, we welcome and embrace Pixar's unique culture."

"Embrace?" jabbed MBrailer. "Hell, Disney's going to squeeze the life out of Pixar -- soon to be another victim of corporate 'synergy.'"

Elsewhere, ChickenFriedMonkey took the cheeky approach: "Man, this is going to be great. I can't wait for the direct-to-video release of 'Finding Nemo 3' and 'Monsters Inc. 5.' Who needs new ideas anyway?"

Still, there were a scant few, like Yahoo's DrLemerande, that held out hope it was all a bad dream.

"This is a passionate man, a man who would live in rags to put an Apple computer into every house," he said. "It's not about deals or money. It's about quality and integrity. Understand this and you'll understand why Steve Jobs will never sell."

Not everyone was doom and gloom, however. Gatchamanfighter lauded the creative firepower that John Lasseter, the force behind some of Pixar's biggest hits, and Jobs brings to Disney.

"Lasseter is truly amazing. Five years from now, Disney will be winning Best Picture Oscars," he said. "Jobs' singular talent is in nurturing and focusing incredibly talented people like Lasseter and [Apple designer Jonathan] Ive. ... On his own, he's basically a used-car salesman, but when he gets behind someone there's no limit to what can be accomplished."

The Pixar alarmists are overreacting, as NYC1oo14 sees it: "It's in Disney's best interest for Pixar to make new characters and new films because this means greater licensing revenue and more characters for its theme parks. So, chances are the deal will be a good one for all concerned."

Wall Street eyes box office to judge Disney-Pixar

 

Financial analysts said on Wednesday that the best formula for gauging whether the Walt Disney Co.'s (DIS.N ) $7.4 billion acquisition of Pixar Animation Studios Inc.(PIXR.O ) will succeed is simple -- it's all about box office.

 

Other indications of success will include staff retention and whether Pixar's creative team can influence Disney theme parks and wider culture, but ticket numbers are the key.

The deal, announced on Tuesday, puts Pixar President Ed Catmull and Executive Vice President John Lasseter in charge of both Pixar's and Disney's animation studios, and Pixar Chief Executive Steve Jobs on Disney's board of directors.

Pixar has reaped billions of dollars in box office receipts from an unbroken string of hits such as "Finding Nemo" and "Toy Story".

"I think the key will be how successful the Pixar films that we don't yet know the names of are," Pali Research analyst Rich Greenfield said.

Greenfield said he also will be watching for signs that Disney's movie and theme park businesses are showing the creative influence of Jobs, Catmull and Lasseter on day-to-day operations.

"How quickly Disney is able to gear up for sequels for Pixar films, and how soon and significant an impact the Pixar leaders are able to have on the Disney franchise -- seeing some tangible signs of benefit is going to be important," Greenfield said.

Shares of Disney were down 59 cents or 2.27 percent to $25.40 in late afternoon trading on the New York Stock Exchange, following the Tuesday afternoon announcement of the deal.

Pixar shares were trading on Wednesday at $57.90, up 33 cents or about 0.6 percent in late afternoon trading on Nasdaq.

Disney Chief Financial Office Tom Staggs said on Tuesday the company expected the all-stock transaction to dilute earnings in 2006, to dilute "modestly" in 2007, and to be accretive to earnings by 2008 and that Disney would buy back some $5 billion in stock in the next 12 months.

Sanders Morris Harris analyst David Miller said he planned to watch that the company's buyback plan was, in fact, stabilizing the deal's dilutive effect on earnings.

But Miller and other analysts said the quality and performance of the first films produced by animators under the direction of Catmull and Lasseter will tell them more about the deal's ongoing success in the coming years.

"You'd like to see things improve (at Disney's animation studios)," analyst Dennis McAlpine of McAlpine Associates said.

McAlpine joked that he also plans to keep a careful eye on the parking lot at Pixar's Emeryville, California headquarters for vacant parking spaces.

"The key criteria I think will really be, do the people work together? Do you see a lot of defections coming? If you do see a lot of Pixar people leaving, then this is not a deal that's going to work," McAlpine said.

However, the next movie milestone may be long in coming.

Neither Disney nor Pixar, which has released one computer-generated film about every 18 months, has set release dates for a handful of films now in production at both studios, including Disney's "American Dog," "Rapunzel Unbraided," and "Toy Story 3" and Pixar's expected "Ratatouille."

Disney holders ask court to reverse pay ruling

A lawyer representing Walt Disney Co. (DIS.N ) shareholders on Wednesday asked Delaware's high court to reverse a ruling that found the company's directors did not breach their duty when awarding former President Michael Ovitz a $130 million severance package.

Steven Schulman, a New York attorney with the firm of Milberg Weiss Bershad & Schulman, argued before the five justices of the Delaware Supreme Court that the rule used to show the Disney directors acted in good faith had been wrongly interpreted.

But Gregory Williams, a lawyer representing the defendants, told the court that the board acted properly and "no one expected this perfect storm," where Ovitz was ousted after only 14 months and Disney's stock price shot higher, inflating the price of the severance package.

"People believed hiring Ovitz was the right thing for the company," Williams said.

The oral arguments marked the latest chapter in the long-running legal battle over Ovitz's out-sized payout. The case, which has dragged on for nearly a decade, has been closely watched because it tests the limits of liability for directors making corporate decisions.

In the appeal filed in October, attorneys for the shareholders claimed the judge's ruling was flawed on procedural and evidentiary grounds and should be overturned.

In August, Judge William Chandler of Delaware Chancery Court ruled the Disney board of directors did not breach its duties when Ovitz walked away with the huge pay package after a brief stint as president in 1996.

When issued, the ruling dealt a blow to shareholder activists seeking to hold boards responsible for their conduct.

In his ruling, Chandler said that while the board's conduct might not have been ideal, Chief Executive Michael Eisner and other directors acted legally.

The Supreme Court justices peppered the lawyers with questions about Ovitz's termination, as well as the interpretation of the state's "business judgment rule." That rule was used in the case to show the directors acted "in good faith" when granting the severance package.

The lawsuit, brought in 1997, stemmed from Eisner's decision in 1995 to hire Ovitz, the founder of Creative Artists Agency and one of Hollywood's most powerful talent agents, as his No. 2 executive.

The shareholders said records showed that the board never met to discuss the deal before Disney issued a statement saying Ovitz had been hired. They also contend the Disney board was snoozing when it gave Ovitz the compensation package that included rich severance.

A ruling on the matter is expected within 90 days, but plaintiffs' attorney Schulman said after the hearing that he believed the court wished to act quickly on the matter.

Jobs to Become Major Hollywood Player

 

As the co-founder and CEO of both Apple Computer Inc. and Pixar Animation Studios Inc., Steve Jobs has long bridged the sometimes wide gap between content creators in Hollywood and Silicon Valley technology companies.

-Removal of the West End Stage

-Removal of the Hub Stage

-Removal of part of the Mouse House building

-Introduction of some "green" areas - benches, seating areas

-Changes to the frontage of several buildings

-New traffic flow running near Motion connecting to the Marketplace

-A re-grade of the Pleasure Island street, reducing the hill, making the area ADA compliant

Silk, Broken Bricks, and Magic

 

Disney Insider - The ballroom at the Disneyland Hotel has seen many gala events over the years, but few that pack such a punch. In one area, two gi-clad contestants spar in helmets and gloves. Nearby, a young man in black silk moves slowly and gracefully through a flowing, stylized routine, flourishing a rod tipped with long silk tassels. He’s followed by a contestant in yellow silk who performs a breathtaking series of flips and somersaults, some of them in mid-air. And at the next mat over, there’s still more to see.

The event is the Disney Martial Arts Festival Qualifier at Disneyland_® Resort. Over the weekend of January 6 and 7, several hundred competitors gathered to show off their skills, and to qualify for Disney's Martial Arts Festival, which will take place October 26 through 29 at Disney’s Wide World of Sports^® Complex at the Walt Disney World Resort. From kids as young as four to seasoned masters, there was a place in the program for everyone. This is the first year that Disneyland has hosted the event, and the response has been everything the organizers could have hoped for.

When you think Disney, "martial arts" might not be the first thing that springs to mind. But according to Rob Hartman, Co director of the Disneyland Martial Arts Festival Qualifier, Disney brings something to the event that puts it in a league of its own - call it the "Disney difference."

 

"All the feedback has been very positive," he tells us. "Particularly people loved the venue [the Disneyland Hotel], the way it was set up and the professionalism of it. And the Disney difference - simple things like padded chairs! Just the things that Disney does better. We brought mats in, that’s unusual for martial arts events. And we were very spectator-friendly."

Another thing that gives this event a Disney difference is its sheer diversity - all skill levels and dozens of different martial arts disciplines are all represented, side by side in the ballroom. Rob, along with Ravenn Gethers, Sports Manager at Disney’s Wide World of Sports, tells us that most tournaments focus on just a few disciplines, while the Disney events truly offer something for everyone.

"You’d have to go to 10 different events to see what you see here. We’re opening up the martial arts world to everybody," says Rob, while Ravenn points out "I think bringing all those different disciplines together really speaks to all the practitioners. We don’t want anyone to feel slighted. I love going out there - you see everything going on at once." In fact, working on this event has given her a martial-arts education. "When I started out, I thought martial arts was just karate!" she laughs.

The culmination of the event was Saturday night’s Showcase of Champions and Celebration, a colorful mélange of demonstrations by experts in their disciplines, exhibitions by competitors, and cultural performances. It’s one place where even total novices can appreciate the full range of what the martial arts offer, from incredible athleticism to dance like grace, from physical prowess to spiritual expression.

Representatives of Southern California’s Chinese community did a lion dance, and members of the Yakima nation performed a dance in full regalia.

"One of the great things about the Disney Sports vision is in the same stage tonight, we have grand masters performing, and then the next act is maybe an eight- or nine-year-old kid. The great thing is that those little kids are all starry-eyed, and to think that they’re going to perform after one of the masters is incredible. That’s the Disney Sports vision - you have Greg Maddux on the mound, and a couple of weeks later you have little Joey on the mound," Rob says.

The Disneyland Martial Arts Festival Qualifier is over and the medals have gone home, but it’s not too late to participate in the main event at Disney's Wide World of Sports next fall - there are more qualifying competitions coming up throughout the country, and many of the events are "open," so that contestants need only go through the registration process and show up to compete. Whether you want to test your abilities in an inspiring setting, or appreciate the beauty and skill of martial artists as a spectator, there’s no more magical place to start."

Walt Disney Pictures' Roving Mars Presented as a Public Service by Lockheed Martin

 

To celebrate the Mars Rovers' Success and World Premiere of Walt Disney Pictures' ROVING MARS.

For centuries human beings have contemplated their most Earth-like planetary neighbor, Mars, dreaming impossible dreams of exploring its surface and divining its mysteries. Now the impossible has become possible. In the new Walt Disney Pictures' production, "Roving Mars," presented as a public service by Lockheed Martin, and showing exclusively in IMAX Theatres, award-winning director George Butler ("Shackleton's Antarctic Adventure") and Academy Award(R)-nominated producer Frank Marshall ("Raiders of the Lost Ark," "Seabiscuit") have documented the remarkable Mars mission that sent two intrepid, death-defying explorers -- Spirit and Opportunity, the Mars rovers -- to the Red Planet. The robot pioneers seek evidence that Mars might once have been hospitable to life, and have set the stage for the arrival of human explorers later this century.

The show will be held at the Lockheed Martin IMAX Theater at the Smithsonian's National Air and Space Museum on Thursday, January 26, 2006.

Reflections of Earth Inferno barge to return

The Inferno barge from Epcot's Reflection of Earth has been missing from the show since September (due to the explosion) is currently set to return to the show during February 2006. The air launch firework system has been redesigned, and uses a different method of igniting the shell after it's launched by air. Note this date is not yet officially confirmed, and is subject to change.

On DVD, never-before-seen bonus features for FLIGHTPLAN are: "In-Flight Movie: The Making of Flightplan" with behind-the-scenes featurettes: "Captain's Greeting" on meeting the director; "Passenger Manifest" on casting the film; "Connecting Flights" on post production; "Emergency Landing" on visual effects; and "Security Checkpoint," the story of how this first-class thriller came to be. There is the "Cabin Pressure" featurette on the unique design of the film's "Aalto E-474" plane, and feature audio commentary with director Robert Schwentke. On UMD for PSP, FLIGHTPLAN offers the featurettes on meeting the director, casting the film, and designing the Aalto E-474.

Produced by Academy Award winner Brian Grazer (Best Picture "A Beautiful Mind" 2001). Written by Peter A. Dowling and Billy Ray. Directed by Robert Schwentke. FLIGHTPLAN is available for $29.99 (S.R.P.) on DVD and on UMD for PSP.

Jodie Foster brings intensity to her roll as Kyle Pratt, an aircraft designer who is on a trans-Atlantic flight with her 6-year-old daughter Julia (Marlene Lawston). While cruising at 40,000 feet in a state-of-the-art aircraft, Julia mysteriously vanishes. Kyle is stunned to discover that the crew does not even remember her daughter being on the plane, and realizes that she must rely entirely on herself to solve the mystery and find her daughter. FLIGHTPLAN also stars Peter Sarsgaard ("Jarhead," "The Skeleton Key"), Sean Bean ("National Treasure," "Troy") and Erika Christensen ("The Upside of Anger," "Traffic").

Disney Buys Pixar for 7.4 Billion 

Disney, Pixar reportedly close to deal 

Disney board okays takeover offer to Pixar-source 

Pixar shares halted for news pending 

Is Pixar Worth $7 Billion to Disney? 

How will a Pixar-Disney marriage affect THQ? 

Disney Hosting Champagne Reception & Private Auction Featuring Artwork by Eric Robison, Carl Barks and Armani 

"Lost" Cast Finds Cash 

Clean Sweep for Chinese New Year at Hong Kong Disneyland 

ABC Offers Reasons for 'Emily's' Departure 

To Hot for Buzz 

Disney, CMT Set Ratings Records

Disney Buys Pixar for 7.4 Billion

Long-time Creative Partners Form New Worldwide Leader in Quality Family Entertainment

Ed Catmull Named President of the Combined Pixar and Disney Animation Studios and John Lasseter Named Chief Creative Officer; Steve Jobs to Join Disney's Board of Directors

Disney Increases Stock Repurchase Authorization

Furthering its strategy of delivering outstanding creative content, Robert A. Iger, President and Chief Executive Officer of The Walt Disney Company (NYSE: DIS), announced today that Disney has agreed to acquire computer animation leader Pixar (NASDAQ: PIXR) in an all-stock transaction, expected to be completed by this summer. Under terms of the agreement, 2.3 Disney shares will be issued for each Pixar share. Based on Pixar's fully diluted shares outstanding, the transaction value is $7.4 billion ($6.3 billion net of Pixar's cash of just over $1 billion).*

This acquisition combines Pixar's preeminent creative and technological resources with Disney's unparalleled portfolio of world-class family entertainment, characters, theme parks and other franchises, resulting in vast potential for new landmark creative output and technological innovation that can fuel future growth across Disney's businesses. Garnering an impressive 20 Academy Awards, Pixar's creative team and global box office success have made it a leader in quality family entertainment through incomparable storytelling abilities, creative vision and innovative technical artistry.

"With this transaction, we welcome and embrace Pixar's unique culture, which for two decades, has fostered some of the most innovative and successful films in history. The talented Pixar team has delivered outstanding animation coupled with compelling stories and enduring characters that have captivated audiences of all ages worldwide and redefined the genre by setting a new standard of excellence," Iger said. "The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses. This investment significantly advances our strategic priorities, which include - first and foremost - delivering high-quality, compelling creative content to consumers, the application of new technology and global expansion to drive long-term shareholder value."

Pixar President Ed Catmull will serve as President of the new Pixar and Disney animation studios, reporting to Iger and Dick Cook, Chairman of The Walt Disney Studios. In addition, Pixar Executive Vice President John Lasseter will be Chief Creative Officer of the animation studios, as well as Principal Creative Advisor at Walt Disney Imagineering, where he will provide his expertise in the design of new attractions for Disney theme parks around the world, reporting directly to Iger. Pixar Chairman and CEO Steve Jobs will be appointed to Disney's Board of Directors as a non-independent member. With the addition of Jobs, 11 of Disney's 14 directors will be independent. Both Disney and Pixar animation units will retain their current operations and locations.

"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," said Jobs. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."

"Pixar's culture of collaboration and innovation has its roots in Disney Animation. Our story and production processes are derivatives of the Walt Disney 'school' of animated filmmaking," said Dr. Catmull. "Just like the Disney classics, Pixar's films are made for family audiences the world over and, most importantly, for the child in everyone. We can think of nothing better for us than to continue to make great movies with Disney."

The acquisition brings to Disney the talented creative teams behind the tremendously popular original Pixar blockbusters, who will now be involved in the nurturing and future development of these properties, including potential feature animation sequels. Pixar's 20-year unrivaled creative track record includes the hits Toy Story, Toy Story 2, A Bug's Life, Monsters, Inc., Finding Nemo and The Incredibles. Disney will also have increased ability to fully capitalize on Pixar-created characters and franchises on high-growth digital platforms such as video games, broadband and wireless, as well as traditional media outlets, including theme parks, consumer products and live stage plays.

"For many of us at Pixar, it was the magic of Disney that influenced us to pursue our dreams of becoming animators, artists, storytellers and filmmakers," said Lasseter. "For 20 years we have created our films in the manner inspired by Walt Disney and the great Disney animators - great stories and characters in an environment made richer by technical advances. It is exciting to continue in this tradition with Disney, the studio that started it all."

"The wonderfully productive 15-year partnership that exists between Disney and Pixar provides a strong foundation that embodies our collective spirit of creativity and imagination," said Cook. "Under this new, strengthened animation unit, we expect to continue to grow and flourish."

Disney first entered into a feature film agreement with Pixar in 1991, resulting in the release of Toy Story, which was hailed as an instant classic upon its release in November 1995. In 1997, Disney extended its relationship with Pixar by entering into a co-production agreement, under which Pixar agreed to produce on an exclusive basis five original computer-animated feature films for distribution by Disney. Pixar is currently in production on the final film under that agreement, Cars, to be distributed by Disney on June 9.

The Boards of Directors of Disney and Pixar have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antritrust Improvements Act, certain non-United States merger control regulations, and other customary closing conditions. The agreement will require the approval of Pixar's shareholders. Jobs, who owns approximately 50.6% of the outstanding Pixar shares, has agreed to vote a number of shares equal to 40% of the outstanding shares in favor of the transaction.

The Disney Board was advised by Goldman, Sachs & Co. and Bear, Stearns & Co. The Pixar Board was advised by Credit Suisse.

Separately, the Disney Board approved the repurchase of approximately 225 million additional shares, bringing the Company's total available authorization to 400 million shares. Since August 2004 through the end of December 2005, Disney has invested nearly $4 billion to purchase nearly 155 million shares. Disney anticipates further significant share repurchases going forward, reflecting Disney's continued commitment to returning value to shareholders over time.

* Based on Disney's closing share price of $25.52 as of 1/23/06.

About The Walt Disney Company:

The Walt Disney Company (NYSE:DIS), together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products. Disney is a Dow 30 company, had annual revenues of nearly $32 billion in its most recent fiscal year, and a market capitalization of approximately $50 billion as of January 23, 2006.

Investor Conference Call:

An investor conference call will take place at approximately 2:15 p.m. PT / 5:15 p.m. ET today, January 24, 2006. To listen to the Webcast, turn your browser to www.disney.com/investors/presentations or http://corporate.pixar.com. If you cannot participate in the live Webcast, re-plays will be available for domestic callers at (888) 286-8010 (PIN 56666399) and for international callers at (617) 801-6888 (PIN 56666399), or at www.disney.com/investors/presentations until 4:00 p.m. PT on Tuesday, February 7, 2006. An .mp3 version of this Webcast replay will also be available approximately 24 hours after the Webcast concludes at www.disney.com/investors/presentations.

Forward-Looking Statements:

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of the views and assumptions of the management of The Walt Disney Company and Pixar regarding future events and business performance as of the time the statements are made and they do not undertake any obligation to update these statements. Actual results may differ materially from those expressed or implied. Such differences may result from legal or regulatory proceedings or other factors that affect the timing or ability to complete the transactions contemplated herein, actions taken by either of the companies, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as well as from developments beyond the companies' control, including: adverse weather conditions or natural disasters; health concerns; international, political or military developments; technological developments; and changes in domestic and global economic conditions, competitive conditions and consumer preferences. Such developments may affect assumptions regarding the operations of the businesses of The Walt Disney Company and Pixar separately or as combined entities including, among other things, the timing of the transaction, the performance of the companies' theatrical and home entertainment releases, expenses of providing medical and pension benefits, and demand for products and performance of some or all company businesses either directly or through their impact on those who distribute our products. Additional factors that may affect results are set forth in the Annual Report on Form 10-K of The Walt Disney Company for the year ended October 1, 2005 under the heading "Item 1A—Risk Factors" and in the Quarterly Report on Form 10-Q of Pixar for the quarter ended October 1, 2005 under the heading "Risk Factors" section of Part I, Item 2.

For Additional Information:

This material is not a substitute for the prospectus/proxy statement Disney and Pixar will file with the Securities and Exchange Commission. Investors are urged to read the prospectus/proxy statement which will contain important information, including detailed risk factors, when it becomes available. The prospectus/proxy statement and other documents which will be filed by Disney and Pixar with the Securities and Exchange Commission will be available free of charge at the SEC's website, www.sec.gov, or by directing a request when such a filing is made to The Walt Disney Company, 500 South Buena Vista Street, Burbank, CA 91521-9722, Attention: Shareholder Services or by directing a request when such a filing is made to Pixar, 1200 Park Avenue, Emeryville, CA 94608.

Pixar, its directors, and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of Pixar and their ownership of Pixar stock is set forth in the proxy statement for Pixar's 2005 annual meeting of shareholders. Investors may obtain additional information regarding the interests of such participants by reading the prospectus/proxy statement when it becomes available.

Disney, Pixar reportedly close to deal

 

Walt Disney Co. and Pixar are on the cusp of a deal in which Disney would buy the computer-animation specialist for roughly $7 billion in stock, news accounts said Tuesday.

The New York Times and Associated Press both reported a deal could be forged as early as Tuesday. Disney's board of directors reportedly discussed the transaction Sunday and Monday and the Pixar board was set to talk about the deal on Tuesday.

The Times said Tuesday that Disney Chief Executive Robert Iger has the authority to offer $59 a share for Pixar. That represents only a slight premium for that company's shares, which were down more than 1% on Tuesday.

Shares of Disney meanwhile were up nearly 2% at the close. 

The Times said Disney would combine Pixar, which has a perfect record with its six feature-length releases thus far, with the company's own struggling animation unit. Pixar Chief Executive Steve Jobs would get a seat on Disney's board and become its largest shareholder.

The Disney-Pixar relationship was in severe doubt two years ago when Jobs announced the company would seek a distribution deal elsewhere. That announcement was one of several events that precipitated the ouster of Michael D. Eisner from his role as Disney chairman.

Eisner was blamed for souring the relationship with Pixar. He eventually retired as the company's chief executive.

Iger's ascendance to the chief executive spot opened the door for Disney and Pixar to renew their successful arrangement.

Meanwhile, Disney is looking to sell its ABC radio stations, perhaps in an effort to pay for the deal.

Clean Sweep for Chinese New Year at Hong Kong Disneyland

 

Hong Kong Disneyland was abuzz with activity as Goofy and a host of cast members began the annual housecleaning tradition in preparation for the park's first Chinese New Year celebration.

Door knobs were polished, windows were sparkling and the pavement swept to perfection as Goofy ensured that the park was looking spick and span in time to welcome the first guests for the holiday, which commences on January 29.

Main Street USA will be the hub of festivities during Chinese New Year celebrations at Hong Kong Disneyland as it will be brightly decorated with blossoming plants, long strings of red firecrackers and beautifully ornamental paper designs. In Town Square, a delicate plum blossom tree will flower throughout the 15 days of Chinese New Year.

Hong Kong Disneyland's Chinese New Year celebration will run from January 29-February 12, 2006 with a series of special activities and decorations to welcome the Year of the Dog.

ABC Offers Reasons for 'Emily's' Departure

Disney, CMT Set Ratings Records

The Disney Channel earned its highest household ratings ever for an original movie with the premiere of High School Musical last week. The movie, which debuted Jan. 20 at 8 p.m., earned a 5.7 household rating, enough to surpass the 5.6 rating Disney notched with its original movie Cadet Kelly in March 2002. It drew 7.73 million total viewers.

High School Musical, a comedy about a jock and a bookworm who both love to sing, helped make Disney the most-viewed network in prime for the week ending Jan. 22, with an average 3.19 million viewers. Among ad-supported networks, USA delivered the largest prime time audience with 2.59 million total viewers, followed by TNT with 2.0 million and TBS with 1.77 million.

In other ratings news, the broadcast of the Miss America Pageant was CMT’s most-viewed program ever, with an average 3.07 million total viewers from 8 to 10 p.m. Jan. 21.

The program surpassed the country-music cable network’s last record of 2.9 million viewers for the 2005 CMT Music Awards, but still drew a far smaller audience than the pageant’s last airing on broadcast.

ABC, which most recently broadcast the competition, decided not to renew its contract with Miss America after the 2004 show pulled in a record low 9.8 million viewers. Viacom-owned CMT picked up the rights to run the pageant in 2006 and 2007, with an option through 2011.

Disney headquarters renames building after Eisner
Will great big Disney destroy little Pixar?
Disney board contemplates buying Pixar 

Monstrous Addition at Disney, Theme Park 

ESPN Puts Sports in the Palm of Your Hand 

"The Incredibles" scores DVD sales record 

Eisner objects to Disney's Pixar price 

Walt's Shoes at Disney Could Be a Fit for Jobs 

Citadel close to deal for ABC Radio 

Moody's may raise Walt Disney's debt ratings 

Disney to ponder extension of Pixar partnership 

Why did ABC cancel 'Emily' after 1 show? 

HK Disney to cut price for tourism industry 

Disney to launch parenting magazine

Walt Disney releases MP3 player in Korea

Disney headquarters renames building after Eisner

 

Former Disney head Michael Eisner is leaving one more mark on the company.

The Walt Disney Co. headquarters building in Burbank, Calif., was renamed today as "Team Disney -- The Michael D. Eisner Building."

Eisner was chief executive office of the company for 21 years until he retired last fall, with a year left in his contract, after surviving a board of directors revolt that attempted to oust him in 2004. Disney Chairman George Mitchell said the board of directors voted unanimously to name the building for Eisner.

"For 21 years, Michael was the leader of the team that reinvigorated this company and put the magic back in Disney, so it is appropriate that this building will now carry his name," Mitchell said.

Will great big Disney destroy little Pixar?

 

A key to the success of a possible takeover of Pixar Animation Studios Inc by Walt Disney Co is whether the entertainment giant can nurture the freewheeling culture that led Pixar to a string of box office successes.

The companies are in talks over whether Disney should buy Pixar for around $7 billion in stock, making Pixar Chief Executive Steve Jobs Disney's top shareholder and potential board member.

The Disney board is meeting on Monday.

Pixar is known for its egalitarian ways where the lowest-ranking animator can share ideas with the bosses while Disney has a reputation for making creative decisions from the top down.

Disney would acquire a stable of directors and animators, known as "The Brain Trust," who have generated $3.2 billion in box office receipts and who have long enjoyed an autonomy undreamt of in the Magic Kingdom.

Analysts and industry experts wondered on Monday whether Disney, with its relatively strait-laced, layered corporate culture can preserve Pixar's more free-wheeling, creatively driven culture while increasing its output to at least one film per year.

"Avoiding the time-driven demands in favor of creative excellence is a key differentiator of Pixar versus all other studios," Goldman Sachs analyst Anthony Noto said in a note to clients. "Moving to two films a year and the corporate demands of a large company could destroy the culture of Pixar."

DISNEYFIED

Pixar's headquarters in Emeryville, California, was described by the San Francisco Chronicle as "a prepubescent's paradise of foosball and pool tables, movie posters and cafeteria workers serving fun food" where Pixar animators delight in "showing their bosses better ways of doing things."

"Dealing with middle management, departments and studio heads -- we have none of that," Andrew Stanton, director of "Finding Nemo," told the Chronicle in 2003. "That's the thing that makes this place incredibly unique.

Disney animation has seen several "Golden Ages" but the studio was slow to make the transition from hand-drawn cells to computer-generated (CG) animation even after the 1995 release of Pixar's "Toy Story" showed the technology's promise.

Disney's first fully computer-animated feature "Chicken Little," debuted in November to mixed reviews and moderate box office success compared to Pixar films.

Pixar creative chief John Lasseter and Jobs have "a huge task" ahead of them in making sure Pixar, which is one-seventh the size of Disney, does not become "Disneyfied," Anant Sundaram, a professor at Dartmouth College's Tuck School of Business said on Monday.

"It's a classic case ... a little, fabulous creative growth asset that is rich in intellectual property gets dissipated in a corporate takeover," Sundaram said.

"The business world is littered with disappointments: IBM and Lotus, AOL and Netscape, Microsoft and WebTV," he said. "It's very difficult for a small newcomer to change an entrenched culture of a larger competitor."

The animation community, however, seems optimistic about the outcome of a Disney-Pixar merger because of hopes that Pixar will remind Disney how to make good animated films, said Ramin Zahed, editor-in-chief of Animation Magazine.

Ironically, the team-based creative techniques Pixar uses to hone its stories were developed by Disney's "Nine Old Men," the animators who presided over the Golden Age of such classics as "Pinocchio" and "Bambi," Zahed said.

And Lasseter, a former Disney animator, is expected to take a leading role at Disney if the deal goes through.

"Everybody says Disney is going to benefit from it," Zahed said of a potential merger. "The common feeling is that it's going to be Pixar affecting the Disney culture."

Disney board contemplates buying Pixar

 

Walt Disney on Monday moved closer to the possible acquisition of Pixar, the animated film company worth nearly $7bn, as its board of directors met to mull the transaction.

The Disney directors also were discussing the sale of its radio division, according to people familiar with the matter. The company has entered into exclusive talks with Citadel, a communications group, which is offering about $3bn.

A Pixar acquisition would reinvigorate Disney’s animation department, whose characters are the engine behind the company’s theatrical revenues, consumer products, theme park and other ancillary businesses.

However, some analysts expressed reservations about a deal. In a note to investors on Monday, Spencer Wang, analyst at JPMorgan, worried that Disney could be buying Pixar at the top of the market for computer-generated animation, and that such a transaction would dilute its earnings. “Net-net, we are wary of a Disney purchase of Pixar,” Mr Wang concluded.

In afternoon trading on Monday, Disney shares were down 1 cent to $25.15. Pixar, meanwhile, had gained 16 cents to $58.62, giving it a market capitalization just shy of $7bn.

Disney, once synonymous with animation, has struggled to make the transition from hand-drawn cartoons to the computer-generated technology that Pixar pioneered with Toy Story, and followed up with a string of blockbusters, including Finding Nemo and The Incredibles. DreamWorks Animation also has used the technology to make a splash with its Shrek franchise.

In addition to the talent infusion, a deal would draw Disney closer to Steve Jobs, Pixar’s chief executive who also runs Apple Computer. Such a move could help Disney navigate the new digital landscape, in which media companies are increasingly pushing to make their content available on a number of new devices, such as iPods and mobile phones.

In October, Robert Iger, Disney’s chief executive, and Mr Jobs gave their vision when Disney’s ABC network agreed to sell its top-rated television programs Desperate Housewives and Lost for download through Apple’s iTunes service.

“There is a lot of value in creating a closer long-term relationship between Disney, the premier content company in the world, and Apple, the most innovative consumer company in the world,” said Laura Martin, analyst at Soleil Securities. “If Disney buys Pixar, we would expect closer co-operation between Disney and Apple due to Steve Jobs’ role in both companies.”

Other analysts have expressed concerns about Pixar’s ability to thrive under a larger corporate parent, and whether Mr Jobs would face conflicts of interest if the Apple chief executive were to become Disney’s largest shareholder and a member of the board. Mr Jobs, for example, could face dilemmas in board discussions about Disney’s technology partners, and whether or not the media company should sell its content on platforms other than iTunes.

Walt Disney Imagineering and Pixar Animation Studio staffers celebrate the opening of the new Disney's California Adventure theme park attraction, Monsters, Inc. Mike & Sulley to the Rescue!

Monsters, Inc. Mike & Sulley to the Rescue! features over 40 characters in 16 distinct scenes, and incorporates the unique use of both black-light and white-light illuminated sets. Technical highlights of the attraction include a disappearing Randall Boggs as well as a multihued Boggs who changes colors as Boo bonks him on his head in the attraction’s finale.

The attraction features newly recorded performances by many of the film’s original voice talents, including Billy Crystal and John Goodman. The musical soundtrack for the attraction is derived from the Academy Award nominated Monsters, Inc. film score by noted Oscar winner Randy Newman.

"Monsters, Inc. Mike & Sulley to the Rescue! represents the next generation of family-friendly adventures, with humor and adventure to delight every age group,” said Tom Fitzgerald, senior creative executive for Walt Disney Imagineering. “We’re bringing this new classic to life with magic and special effects while remaining true to the charming story that inspired it."

The official dedication of the new Monsters, Inc. Mike & Sulley to the Rescue! attraction will take place on Monday, January 23, at 10 a.m. PST.

ESPN Puts Sports in the Palm of Your Hand

 

It comes packaged inside a black box designed with velvety red lining to look more like it contains fine cigars instead of the new ESPN mobile phone.

"To a guy, this is like a Tiffany's box," said Manish K. Jha, general manager of Mobile ESPN.

The phone is the newest cellular man toy: It rings with the sports network's theme song and displays all the scores, trivia, news clips and fantasy football statistics that a guy could handle.

At least, that's the marketing pitch for the phone, which hits retail stores on Super Bowl Sunday, Feb. 5, for $199 and will run on Sprint Nextel Corp.'s high-speed network.

Targeted marketing is a big deal in the cellular industry, where no demographic is without a themed phone designed to cater to its specific needs. Walt Disney Co. is among several companies marketing phones for young children, a company called Amp'd Mobile is for the slightly edgier male audience, and prepaid services such as Boost Mobile and Virgin Mobile USA target teenagers.

For ESPN, the technical challenge -- and the exploitable market niche -- was in trying to make it easier to access the Web with a few clicks and make the small cell phone screen look more like television than just text-based sports scores.

In the case of its first model, called the Sanyo MVP, the phone's background screen is a snapshot of ESPN Magazine, and its keypad comes with a button marked "E" that connects to the ESPN Web site with one click. Although live streaming television doesn't come on this phone, a user can click to watch video news clips of sports events. The main page also features a running ticker at the bottom displaying sports headline news. And users can program the phone to display stats of their favorite players and manage fantasy sports teams online.

Price plans, which include talk time and all data features, range from $34.99 a month to $224.99 a month. For now, the Sanyo model is the only one available, though the company plans to introduce others throughout the year.

ESPN was early to embrace new technologies such as developing its own Web page and offering high-definition channels, said Salil K. Mehta, executive vice president of ESPN Enterprises Inc., and getting into the mobile experience is no different. The cellular phone is a logical extension of its business, and "the fan experience is so compelling," he said.

Because cell phones have become so ubiquitous and loaded with so many features, there is a big push to make them easier to use, so that watching videos or looking up information on them is less cumbersome than it is now.

It's possible to get scores on most phones, but the display might be in the form of a text message, so the teams and their scores don't appear on the same line. Navigating the Web on many phones also is a challenge, whether it means typing in the address on a browser or waiting for images to upload. Some Web formats may not fit the screen or may take several clicks to access.

Technology analysts call the cellular phone the "third screen," growing to be as significant as the television or computer. In most cases, the phone is still considered a service that augments the television or computer, although over time it may steal that audience. But as a media company, you can't be concerned about cannibalizing viewership from those other mediums, Mehta said.

After all, he said, two decades ago cable channels such as ESPN were considered new media, and look where that business went.

"The Incredibles" scores DVD sales record

"The Incredibles" was Britain's best-selling DVD in 2005, a year when DVD sales surged to record highs, the Official UK Charts Company said on Monday.

Five weeks at the top of the official DVD chart in March and April last year secured a record-breaking run for the animated Disney film, which sold more than 1.3 million copies throughout 2005.

"Star Wars: Episode III - Revenge of the Sith" followed in second place, having produced 2005's highest DVD sales in a seven-day period by selling 650,000 units in a week.

DVD sales in reached a record number of 170 million units last year, the Official UK Charts Company said. Christmas week was the biggest sales week ever with 10.5 million sold, a year-on-year increase of 33 percent.

The Official UK Charts Company said it had started to record sales of a new format, the Universal Media Disc (UMD).

Eisner objects to Disney's Pixar price

Here's the latest on the perhaps-to-happen, Pixar/Disney merger. The deal, to be considered by Disney's board today, has a high probability to go through, because Disney CEO Bob Iger -- bent on bringing "the magic back to Disney"-- wants it. But the price is a very high, $7 billion in stock. A source says Michael Eisner (who if nothing else is still a major stockholder) thinks that's too high. That case rests on the thought that when Disney was under attack from Comcast, Disney was claiming that its stock was undervalued. If that's the truth, then Disney should be placing a higher value than its current stock price on every share it hands over to Pixar..... Also there has been some chatter that Steve Jobs was slated to be chairman of Disney. As of now, that does not appear to be the case. And Pixar's creative genius, John Lasseter, is supposed to be joining Disney. But there's one knock on Lasseter, which is that supposedly he's spending a lot of time and energy these days on his vineyard. On the other hand, Lasseter is supposed to have a lot of very good people working for him.

Walt's Shoes at Disney Could Be a Fit for Jobs

What does Steve Jobs want?

With Walt Disney Co.'s board scheduled today to consider whether to buy Pixar Animation Studios, Jobs, the mercurial visionary whose iPod transformed the way Americans consume entertainment, is being compared to Disney's late founder, the mercurial visionary whose theme parks sparked similar change half a century ago.

Like Walt Disney in his day, the 50-year-old Jobs is a perfectionist known to fuss over the number of buttons on a computer mouse. Jobs is a college dropout; Disney never finished high school. And with Pixar's mastery of computer-generated movies such as "The Incredibles," Jobs has taken the animation that Disney first popularized in the 1930s and not just re-energized it but made it box-office gold.

If Disney acquires Pixar, Jobs would join the company's board of directors, own the largest individual stake and become, by far, the most recognizable face on the company's corporate roster — potentially overshadowing Chief Executive Robert Iger.

At present, "Disney doesn't have a guy who shakes the walls, a larger-than-life character like Walt," said Jeffrey S. Young, co-author of the Jobs biography "iCon Steve Jobs: The Greatest Second Act in the History of Business."

Jobs, a co-founder of Apple Computer Inc., has the brash confidence to assume that role. But if he does so, the man who once shaved his head and begged for alms in his search for enlightenment stands to inherit more than the mantle of the company's lionized founder.

People who know Jobs and analysts who have tracked his companies for years say the potential deal is notable less for what it would mean for Disney than for how it would expand the cult of Jobs.

"Let's be clear: Steve's not in this for the money," said analyst Tim Bajarin, who watched Jobs unveil the first Macintosh computer in 1984. "It's his original vision of doing something that would change the world that's important. This is another step in seeing him influence that vision and goal."

Jobs declined to be interviewed for this story, as did several of his closest friends.

Venture capitalist Michael Moritz once commented: "Almost everybody has an opinion of Steve Jobs, but very few people know him." That's because Jobs is a master at controlling his own image.

Often featured on magazine covers wearing his trademark black turtlenecks, Jobs has been more famous than his companies' market share would seem to justify. His products are innovative, but they don't always sell.

A savvy marketer with a keen eye for design, Jobs nevertheless has had to fight to rebuild Apple's share of the personal computer market, which is just less than 4%. And with big technology competitors lining up to challenge iPod, he cannot afford to assume that his company's must-have gadget of the moment will remain top-of-mind forever.

And that, some believe, is part of what's driving him to consider selling Pixar, whose seventh feature film — "Cars," due in theaters in June — is already rumored to be the animation studio's best film yet.

Selling Pixar to Disney would give Jobs two things he dearly wants, say those who have made it their business to study him. First, it would show the world that the Burbank-based entertainment empire needed his scrappy Emeryville, Calif., animation house to compete. Second, it would free him up to concentrate on the company that will cement his own legacy as an innovator: Apple.

"His interest is in either power or cultural impact," said Alan Deutschman, author of the biography "The Second Coming of Steve Jobs." The proposed sale would give him a little more of both.

Jobs, like Walt Disney, follows his gut instincts — even when they defy market research, conventional wisdom or common sense.

When he first teamed with Apple co-founder Steve Wozniak in the 1970s, their tinkering in a cluttered garage came to typify the can-do mentality of Silicon Valley. Although Wozniak was credited as the better technician, Jobs was considered a magician of spin even then. He understood what was cool and knew how to persuade others to think it was cool too.

Early on at Apple, for instance, Jobs fought to make a laser printer, even as his colleagues dismissed the notion that anyone would buy a $7,000 printer. Jobs prevailed and desktop publishing was born.

"Typography used to be big business," said Young, the Jobs biographer. "There's no such business anymore. That's completely due to Apple. That's completely due to Steve Jobs, because he believed."

Similarly, the iPod was anything but an obvious hit when Apple unveiled it in 2001. At the time, stores were filled with big, clunky digital music players that barely attracted a listen from shoppers — let alone billions of dollars in sales.

Citadel close to deal for ABC Radio

Walt Disney Co.<DIS.N> is close to an agreement to sell its ABC Radio unit to Citadel Broadcasting for almost $3 billion, the New York Times reported on Monday, citing people involved in the deal.

The newspaper said the deal could be struck within the next two weeks with Citadel Broadcasting Corp. <CDL.N>, a radio broadcaster largely owned by private equity firm Forstmann Little & Co.

Representatives for Disney and Citadel were not immediately available to comment on the report.

Reuters reported last week that, in addition to Citadel, other bidders for the Disney unit included Kohlberg Kravis Roberts & Co. and Entercom Communications Corp <ETM.N>.

Moody's may raise Walt Disney's debt ratings

Moody's Investors Service on Monday said it may raise Walt Disney Co.'s (DIS.N) long-term debt ratings, citing a strengthening balance sheet.

Disney has sustained "strong" credit quality measures during the last two years, Moody's said. About $10 billion of debt could be upgraded, Moody's said.

Upgrades usually lower a company's borrowing costs.

Moody's said it may raise Walt Disney Co.'s "Baa1" senior unsecured rating, which is three steps above junk. The rating agency also said it may raise Disney unit ABC Inc.'s "A3" senior unsecured rating, among others.

Moody's noted that Disney has maintained strong credit quality unlike many of its peers in the media sector, who have opted to compromise their credit ratings by taking on more leverage or by spinning off operations.

The rating agency also cited the "successful transition to a new CEO who is committed to maintaining a strong balance sheet and whose strategic plans Moody's is comfortable with."

In deciding on a potential upgrade, "Moody's will focus on Disney's ability to balance the pressure from equity investors with the needs of creditors," the rating agency said in a statement.

Other media companies recently have undertaken shareholder friendly actions which has undermined their credit quality.

Moody's said it will also monitor Disney's ability to grow without acquisitions, its use of new technologies, and how well the company shifts to new entertainment modes and away from traditional distribution methods.

Disney bonds were unchanged in thin trading.

Disney to ponder extension of Pixar partnership

As merger speculation swirled around Disney (DIS) and Pixar (PIXR) about their lucrative - but soon-to-expire - production and distribution pact, Disney's board is expected to huddle today to consider proposals to keep that relationship alive.

The board, which has a regularly scheduled meeting in California, is scheduled to discuss various possibilities to extend the partnership, according to two executives who were not directly involved in the talks but were apprised of some details. Neither wanted to comment publicly, saying the negotiations were confidential and aspects of the discussions were still fluid and could change.

One potential outcome is that Disney could buy Pixar outright, according to published reports that could not be confirmed. Both Disney and Pixar declined to comment on the discussions.

A Disney deal to buy Pixar is seen by many analysts - as well as many Disney shareholders - as key to restoring some of Disney's lost magic in animation. While Pixar has produced hits such as Toy Story and Finding Nemo, Disney has floundered with flops such as The Emperor's New Groove and Atlantis.

Discussions to renew the existing deal fell apart under the watch of former Disney CEO Michael Eisner as he and Pixar CEO Steve Jobs clashed over topics such as sequel rights. The current agreement - in which Disney and Pixar split production costs and profits and Disney gets a distribution fee of as much as 15% - ends after Pixar delivers Cars this June.

Bob Iger, who took Disney's helm in October, has been trying to repair relations.

But there would be major obstacles to overcome to make buying Pixar a success. For one, Iger couldn't easily assert control if, as many expect, Disney offers a large amount of stock for Pixar and gives the strong-willed Jobs a seat on the board.

"Iger waited years (to be CEO) as an understudy to Michael Eisner," says independent analyst Dennis McAlpine. "Does he want to be an understudy to Steve Jobs?"

Jobs spends only a few days a month with Pixar, devoting most of his time to running Apple. Yet a deal with Disney could turn Jobs, who owns 50.6% of Pixar, into Disney's biggest individual shareholder.

Jobs isn't the only Pixar employee who could give Disney a boost. Pixar's main creative force, John Lasseter, who wrote and directed Toy Story, A Bug's Life and the upcoming Cars, is seen by many as a key figure. Formerly with Disney, he is seen as someone who could help turn around his former employer's struggling animation unit.

Lasseter's input could be more important than ever, especially as a burgeoning number of studios, both large and small, try to get into the profitable computer-animation business.

DreamWorks Animation, which made Shrek and Madagascar, plans to increase its output to two films a year. Fox has high hopes for this year's sequel to its hit Ice Age.

Paramount, Warner Bros., Universal and Sony also want to step up their animation - as do independent producers including Lions Gate, The Weinstein Co., Nike Chairman Phil Knight's Laika and Vanguard Animation.

"Animation is getting very competitive," says McAlpine. "Pixar has an excellent track record, but with that amount of competition, how much can you force into the market?"

Also, Pixar is held to a higher standard than its peers. That puts its stock at risk - and could be a force behind any decision to sell to Disney, say analysts.

It doesn't necessarily take a flop to affect Pixar's stock, says independent media analyst Hal Vogel. Even if a Pixar film is "less good" rather than fantastic, Wall Street could punish the animation studio. "Why go through all that if you can sell to Disney?" he says.

Why did ABC cancel 'Emily' after 1 show?

One minute, Heather Graham was the face of ABC. The next minute, she was gone.

Her comedy series "Emily's Reasons Why Not" was promoted relentlessly by the network as the linchpin of its post-football Monday night schedule, but was only given one airing before being yanked earlier this month.

ABC committed to the big promotional campaign before even seeing a script for the show, said ABC entertainment president Stephen McPherson on Saturday. The series turned out to be a dog creatively, he indicated.

"Once we saw it was not launching, we felt like unfortunately it was not going to get better and we had to make a change," McPherson said.

A total of six episodes were filmed, and McPherson said no determination has been made about whether they would be burned off.

The quick hook doesn't mean producers of other ABC series with middling ratings -- "Invasion," for example -- should be shaking in fear.

"That's a great example for us of when to be patient and when to fold them," he said. "We believe in that show."

HK Disney to cut price for tourism industry

Travel agents can now book hotels in Hong Kong Disneyland for merely half the price, as well they can purchase two adult entrance tickets for 295 Hong Kong dollars (US$37.82), from February 6 to April 6, Xinhua news agency reported today.

The ticket promotion is to honor those who work in the tourism industry. Hong Kong Disneyland previously sold their tickets for 50 Hong Kong dollars to Hong Kong residents but raised its price to normal level later.

Hong Kong Disneyland plans to market various activities to celebrate the Spring Festival, including a dragon dance and offering souvenirs. As well, Mickey and Pluto will wear Tang jackets to welcome guests.

Hong Kong Disneyland announced its first ticket sell-out on December 13.

It also published the number of visitors for the first time, saying that to the beginning of December 2005, an average of 14,000 people a day visited Hong Kong Disneyland, almost the expected level of 15,000.

Among the more than 1 million visitors, 26 percent came from the Chinese mainland, 25 percent from overseas and the rest from Hong Kong.

Disney to launch parenting magazine

The Walt Disney Company, through its Disney Worldwide Publishing division, will join the crowded but profitable parenting magazine category next month.

Wondertime, Disney's first new magazine since 1991, is aimed at education-obsessed parents of the very young.

"The magazine is for parents, and more specifically moms, of children from birth to age 6," said Alexandra Kennedy, the vice president and editorial director of the United States consumer magazine group at Disney, which also publishes FamilyFun and Disney Adventures. In 2005, the publishing unit sold Discover magazine to Bob Guccione Jr. and shut down Disney magazine, which offered an inside look at Disney resorts, projects and history.

The idea for Wondertime started with Ms. Kennedy. "We want to help moms understand how children are learning and growing," she said. She added that unlike most parenting magazines, which help women with their new roles as mothers, Wondertime will help them support their children's learning.

The first issue will include articles on what babies know within hours of birth, like how to mimic a parent sticking out his or her tongue; how children understand concepts of time like duration, clocks and tomorrow; and what preschool teachers can teach mothers about instilling virtues such as kindness.

If a company is going to start a new magazine, the parenting category is the place to do it: publications, which include American Baby, Babytalk, Child, Parenting and Parents, had an increase in advertising pages in 2005. Across the category, pages were up 5.7 percent over 2004. Wondertime is the second new magazine in the category in six months; Cookie, a style magazine aimed at wealthy parents, started last fall.

Glenn Rosenbloom, senior vice president and group publisher for Disney's magazine group, said that Wondertime was aimed at better-educated mothers, and that "with education, you'd typically expect a mom with a better-than-average income."

Most parenting magazines are anchored by "how-to" stories about nutritious lunches, creative art projects and making harried trips to the store efficient and entertaining. Wondertime's version of this type of service story will be how parents can play games with their children in the supermarket: concepts like sorting and math can be taught with apples and oranges in the produce section, and color names can be pointed out while perusing the yogurts.

Ms. Kennedy said that mothers are tired of hearing things like "wait until they're teenagers" and want positive messages about parenting. Focus-group participants, she said, saw "raising children as an exciting time, when moms are discovering things along with their child."

Wondertime is starting with the full marketing power of Disney behind it. The first issue features advertisers like Hasbro, which is running two multipage ads, as well as Kimberly Clark, Johnson & Johnson and Quaker Oats. The Baby Einstein Company, which makes educational videos, toys and books, is a sister company of Disney Worldwide Publishing, and Mr. Rosenbloom sees opportunities for cross-promotions like fliers tucked into DVD's.

Lynn Wegner, a psychologist who heads the developmental and behavioral section of the American Academy of Pediatrics, said that the magazine seemed to be tapping into a psychological need.

"People are extraordinarily interested in their children's learning," she said. "Parents see their children as extensions of themselves, and if their children do well it reflects well on them."

Walt Disney releases MP3 player in Korea

Walt Disney, the world's largest media company, comes to Korea . Another animation film targeting the holiday season here? No. This time, the global entertainment company comes with MP3 player.

Walt Disney recently introduced Disney Mix Stick Player in the US and agreed to release MP3 players and digital cameras in China partnering with TCL. Its Korean partner will be MPIO, the maker of MPIO MP3 player series. 

 

Targeting kids consumers, MPIP plans to introduce FY700 Disney edition in February, featuring popular Disney characters like Winnie the Pooh and Mickey Mouse on the body. It plans to develop MP3 players featuring Disney characters.

 

Even though the main target of Disney MP3 players would be children, they are expected to gain popularity among Kidults who want to reclaim joys of their own childhood. MPIO also agreed with Disney to discuss sales of Disney MP3 player in foreign countries.

Disney's $100 million gamble 

All eyes now on Disney board meet 

Jobs to scoop $3.5bn as Pixar board approves Disney takeover 

Expedition Everest set for Disney World's Animal Kingdom 

Ads May Surprise When Iger's Disney Airs Super Bowl 

Teen animator wants to work for Disney 

When Disney dreams get real 

Sword Sequence Tops in Dead Man’s Chest 

Kingdom Hearts

Disney's $100 million gamble

 

Expedition Everest roller coaster reaches sky-high for fresh thrills

 

Walt Disney World called it nahtazu in its TV ads -- striving to define its Animal Kingdom as anything but a plain old zoo.

But now, Disney is about to try a shot of steel-railed adrenaline to drive home that message in an attempt to attract more -- and younger -- visitors who want a little more of a rush along with the lions, tigers, shows and themed rides.

It's called Expedition Everest, Disney's first large outdoor roller coaster that opens to annual- and seasonal-pass holders late this week and other guests intermittently for the next month.

With a reported price tag of up to $100 million, Everest needs to be more than just a must-ride new attraction, industry observers said.

It must be enough to entice visitors to tack an extra day onto their Disney stays. And by staying longer at Disney -- a key strategy for the company -- those visitors may opt to skip a trip or shorten a visit to crosstown rivals SeaWorld Orlando or Universal Orlando, each of which has added new attractions or rides in recent years.

"It's the whole function of how you get your money back. You don't just get it from the gate," said Orlando-based consultant Steve Baker, president of Baker Leisure Group. "You get it through extended stays in hotel rooms. People who plan to come when something is new, they'll get them. Now it'll take an extra half-day to see everything, and they'll get that extra night in the hotel."

And right now Animal Kingdom -- Disney World's most passive and least popular park since it opened in 1998 -- may be the one that vacationers most likely try to squeeze into a few hours, or simply skip on a tight schedule, Baker said.

While agreeing that Everest should extend visitors' stays at Animal Kingdom, Disney spokeswoman Jacquee Polak dismissed the idea that the park now is often a quick visit that people fit in around the other parks.

"Animal Kingdom, in and of itself, is a full-day experience. It doesn't have the nighttime appeal the other parks have. It typically closes around 5 o'clock," she said. "But it certainly . . . offers an experience that the other theme parks don't have here at Walt Disney World."

Animal Kingdom's popularity has grown the past two years, but the park still has not recovered from the steep drop in attendance it suffered earlier this decade. Attendance fell after the novelty wore off in 2000, and in the following two years because of the international tourism scare.

Animal Kingdom's attendance of 8.2 million last year still was far ahead of all non-Disney theme parks in North America, according to data published by Amusement Business magazine. But that gate was bolstered by the major celebration tied to Disneyland's 50th anniversary -- and the trick is staying popular, Baker said.

"It's critical," Baker said of Everest. "You can't maintain your market share . . . without new inclusions every so often, maybe every 18 months or every two years."

Yet big new attractions don't guarantee more customers. Last year, Universal Studios Orlando opened its Fear Factor Live show but saw a 6 percent drop in attendance compared with a big 2004, when its Revenge of the Mummy ride opened. Likewise, attendance fell at Kings Island in Ohio and Knott's Berry Farm in California despite new coasters.

On the other hand, Mission: Space, which also reportedly cost $100 million, helped turn around Epcot's falling attendance in 2003. The last time a major new roller coaster was added to an existing Central Florida park was 2000 with Kraken. SeaWorld saw an 11 percent increase in attendance that year.

At Animal Kingdom, Everest also may be key to capturing the attention of teens and young adults who can grow tired of animal safaris, shows and slower rides, industry observers said.

"I think they're trying to open the demographic that would be interested in that park," said Jerry Aldrich, president of Amusement Industry Consulting in Orlando. "They have probably . . . determined there is a void in a certain age they want to appeal to."

Spokeswoman Polak and other Disney officials insisted the ride's main appeal would be familywide, driven not by the physical thrills but by the story line and an adventure conveyed through details and special effects.

In fact, Disney officials normally don't even refer to Expedition Everest as a "roller coaster," and the words don't appear in promotional materials, other than with a promise of "coaster-like thrills." It's a "runaway train adventure."

"I guess I would focus more on these storytelling parts," Polak said. "We want to immerse our guests in the experience of the attraction."

The story has riders traveling into the Himalayas, where the mythological yeti -- as the Abominable Snowman is called there -- protects the region.

Yet in some circles, it's still a coaster. And people who love coasters say it's about time.

"When you think of the king of the parks, you think of the roller coaster," said Carole Sanderson, president of the American Coaster Enthusiasts. "This is very important. Especially putting it in the Animal Kingdom."

That means appealing to a generation known for self-avowed adrenaline junkies such as Gus Diaz, 22, of Fort Lauderdale and several other visitors seeking thrills last week at Universal's Islands of Adventure.

Diaz, along with Matt Svacha, 23, of Detroit and Eric Copeland, 25, of San Antonio, said they like Animal Kingdom all right. But thrill rides such as Islands of Adventure's Incredible Hulk are the ones they keep riding over and over.

"We are always thrill seekers," Diaz said. "We like anything that punches our adrenaline. . . . Anything, man. We look for the rush."

Disney says the Everest train tops out at about 50 mph with a maximum drop of 80 feet and that at one point it rushes backward.

A database on roller coasters, rcdb.com, compiled by Duane Marden of Brookfield, Wis., reports that the ride will be 4,400 feet long, with a maximum height of 112 feet, figures Disney did not confirm. Disney is setting the minimum-height limit for riders at 44 inches.

None of those features would place Everest among the top 10 coasters in the United States for speed, drop, length or height.

But American Coaster Enthusiasts' Steve Gzesh, who watched test runs in November, declared Everest "a very respectable ride."

"And it goes forward and backwards," Gzesh said. "That ought to be pretty cool."

All eyes now on Disney board meet

 

Walt Disney Co's board of directors will meet on Monday amid speculation it may buy Pixar Animation Studios Inc in a deal that could revive Disney as the world's dominant animation studio and give computer pioneer Steve Jobs a powerful new platform.

Sources familiar with the talks said the meeting was a regularly scheduled board meeting. It was not clear whether the board was prepared to vote on a merger proposal.

The Wall Street Journal reported on Thursday that Disney proposed to buy Pixar in a stock transaction worth more than $6.7 billion, making Pixar CEO Jobs its largest individual shareholder and possibly giving the man who also co-founded Apple Computer Inc. a seat on Disney's board.

Disney, for decades the pre-eminent maker of such hand-drawn animated films as 'Cinderella' and 'Lion King', has struggled in recent years to maintain its position in an industry that has embraced computer-generated (CG) films.

The two companies were in the midst of renegotiating their distribution agreement, which expires in June with the release of Pixar's 'Cars', when rumors of the purchase surfaced.

Disney could not be reached for comment and a Pixar spokesman declined comment.

Media industry watchers have speculated that the merger talk was driven by Disney's lack of confidence in its upcoming slate of animated films.

Disney's first CG release, 'Chicken Little', released November 4, has performed respectably with worldwide box office sales of $279 million, but less than Pixar's lowest-grossing film, 'A Bug's Life', which reaped $363 million worldwide.

"Disney is perhaps revealing a slight lack of confidence to want to mimic Pixar's success internally," said Anant Sundaram, a professor at Dartmouth College's Tuck School of Business. "If that assessment is true, then it is a somewhat unfortunate admission from a once-great company that fundamentally created, and defined this space."

Analyst Rich Greenfield of Pali Research said in a note on Thursday that the potential deal could signal that Disney "was increasingly concerned with its upcoming (internally generated) animated films."

Disney chief executive Robert Iger pledged in the company's fourth-quarter conference call in November that "animation is, and will remain, at the heart and soul of Disney."

Although Disney has not produced a blockbuster animated film on its own in years, the six films Pixar and Disney made since the 1995 release of 'Toy Story', have grossed more than $3.2 billion.

Pixar was on the verge of finding a new distributor for its films when Iger, who took over in October for longtime Disney CEO Michael Eisner, made a priority of smoothing over relations with Jobs, who had publicly clashed with Eisner.

The Disney board also may approve a buyer for the company's ABC Radio assets, worth an estimated $2.6 billion to $2.9 billion, from among several bidders.

Sources said on Friday that Disney was within a week or two of deciding on a buyer.

Jobs to scoop $3.5bn as Pixar board approves Disney takeover

The board of Pixar Animation Studios, the digital animations company, is set to meet tomorrow to approve the company's $7bn takeover by Disney.

The all-share deal will make Steve Jobs, the chief executive of Apple, around $3.5bn and the single largest shareholder in Disney. Jobs created Pixar in 1986 when he paid $10m for the computer animations division of Lucasfilm, owned by Stars Wars creator George Lucas.

Disney has struggled to compete with its rival's cutting-edge computer animated films, which have become increasingly sophisticated over the past few years.

Disney already has a distribution agreement with Pixar, which is due to expire in June. Pixar's summer blockbuster is a film called Cars, while its previous hits include A Bug's Life, Finding Nemo, Monsters, Inc, Toy Story and The Incredibles.

Disney's first computer--generated film, Chicken Little, was released in the US in November and currently has worldwide box office sales of $279m.

But the giant entertainment company has failed to produce a hit animated film of its own in years. By contrast, the six films that Pixar and Disney have made together since the 1995 release of Toy Story have grossed more than $3.2bn.

Despite the impending takeover of Pixar, Robert Iger, the chief executive of Disney, pledged in November that "animation is, and will remain, at the heart and soul of Disney". 

Expedition Everest set for Disney World's Animal Kingdom

A new ride called Expedition Everest is opening at Disney World's Animal Kingdom in Orlando in April, but New Yorkers will get a peek at the excitement when Disney brings a preview to Times Square next month.

Disney plans to transform the exteriors of the W Hotel and the adjacent Argent building at Broadway and 47th Street into a gigantic backdrop of Mount Everest. An aerial acrobatic troupe will perform there Feb. 15 and 16 on a stage 57 stories high, rappelling down the mountain and coming face to face with a Himalayan yeti -- the legendary abominable snowman.

An animatronic beast will also be part of the thrill when the ride opens at the Florida theme park. The attraction is designed to resemble an old mountain railway, taking guests to the foot of Mount Everest through bamboo forests, past thundering waterfalls and into snowcapped peaks before plunging through canyons to an encounter with the angry yeti.

Expedition Everest will be surrounded by a mythical village at Animal Kingdom called Serka Zong. Based on research by a Disney team that traveled to Nepal, the village will be decorated with prayer flags and carvings and will include buildings, plants and trees designed to look like the real thing. On their way to boarding the train, riders can see artifacts from Nepalese culture and learn about the yeti, the Himalayas and the mountaineers who've climbed Everest.

Disney researchers were accompanied on their trips to Asia by teams from Conservation International and the Discovery Networks. Discovery plans to air a series of cable specials in April about the journey and the creation of the Disney ride.

Although the ride officially opens April 7, Disney will start informal test runs on Expedition Everest next month, so you might have a chance to check it out if you're visiting Orlando in February or March. Children must be at least 44 inches tall to ride.

Ads May Surprise When Iger's Disney Airs Super Bowl

There's the kick, and--let's play the ads.

The entrants are locked in for commercial slots when The Walt Disney Co.'s ABC broadcasts Super Bowl XL on Feb. 5. But unlike most Bowl games, there are some surprises in store on Disney Chief Executive Robert Iger's TV network.

Toyota Motor's nyse:TM Toyota Motor Sales USA is drawing from its Conill Advertising studio for its first bilingual spot. It features a Hispanic father and son who shift seamlessly between Spanish and English--as the padre switches back and forth between gas and electric power in the hybrid 2007 Toyota Camry.

Aleve, the over-the-counter analgesic made by Bayer, will eschew the standard achy blue-collar worker/jock, in favor of Star Trek cult figure Leonard Nimoy.

Unilever's (nyse:UN) Dove soap will continue its egalitarian "Campaign for Real Beauty," with spots aimed at boosting the self-esteem of "real" teenage girls. (No word yet how this will affect NFL cheerleaders.)

Most advertisers, though, will consist of standard Bowl products and tried-and-true marketing.

Yum! Brands arm Pizza Hut will again showcase the beloved Muppets, co-starring with pop singer-tabloid divorcee Jessica Simpson, who also shared the small screen with the plushy characters two years ago. Miss Piggy and Simpson, reportedly, will wear matching ensembles. Accompanying Yum!'s hot slices will be frosty Anheuser-Busch and for the abstemious, those bubbly archrivals Coca-Cola and PepsiCo.

Ever-manly Gillette also plans a big commercial blitz.

What's not locked in for the proverbial big game? Why, the teams, of course. As of press time, it was down to a pair of duos playing Sunday for each conference championship.

AFC: Pittsburgh Steelers at Denver Broncos, aired on the CBS network. NFC: Carolina Panthers at Seattle Seahawks, on News Corp.'s Fox. Iger couldn't win'em all.

Teen animator wants to work for Disney

In a slum area in Pasay City, a teenager is trying to draw his way out of his grim surroundings.

Several months ago, 19-year-old Racel James Esquillo had no job, no money and was facing an uncertain future.

His situation has changed since then. After completing a rigid three-month training on professional animation conducted by Top Peg Animation and Creative Studio, an independent local animation firm, Esquillo was recently hired to work on a cartoon series as an assistant animator.

The show titled "Jobert," which will debut on Hong Kong television by the middle of the year, will hopefully take the teenager a step closer to fulfilling his ultimate dream—to work for an international animation studio like Pixar or Walt Disney.

Esquillo is happy about his accomplishment, attributing it more to God, who has endowed him with the talent, and partly, to the countless hours he spent practicing his drawing skills.

Esquillo said he was eight years old when he first learned how to use a pencil, he recalled. The walls of his house and cabinet doors were his canvas, he added.

He developed a love for animation after he got hooked on Dragon Ball Z, a popular Japanese cartoon show aired on a local channel.

The eldest in a brood of four brothers, Esquillo completed a two-year course in computer technology through a scholarship in May last year.

After graduation, he tried to find work as a computer technician in some companies, but was always turned down. Then came the animation training which reunited him with his first love: Drawing.

"What is good about this profession is that it only recognizes talent. It doesn't care about looks, height, or your status in life," he said.

Alstaire Sarthou, Tog Peg's animation director, told the Inquirer that Esquillo has a "big potential to be a good animator."

"He is among those who excel... his drawing skills are good," he said.

As for Esquillo, animation is no longer just a passion. It has also become a means of livelihood that could lead to a better life for him and his family.

"All I really want is to give my family a good life and send all my brothers to school," he said.

"I will really keep doing my best, no matter how hard it gets sometimes. I don't care if I have to draw from night until the wee hours of the morning," he added.

When Disney dreams get real

Sumit, studying in class X in a Faridabad school, suffers from Thalassemia. He wanted a cricket kit, which was granted by Make-A-Wish Foundation.

Another class X student, Ravi Ahuja, too suffers from Thalassemia. He got a cycle from the foundation. These are small gestures by the foundation, which is working towards making life beautiful for children who suffer from life-threatening diseases. Last week, it conducted a trip of Disney characters to Delhi's Apollo Hospital.

The trip saw more than 100 children like Sumit and Ravi from hospitals across Delhi getting a chance to meet their beloved Mickey Mouse, Minnie Mouse and Goofy. The event was an outcome of the foundation's association with Disney to work closely together across the globe.

Says Sharmistha Adyanthaya, CEO, Make-A-Wish Foundation of India, "We are delighted to be associated with Disney Magic Outreach initiative that promises to bring some magical experience to our children.

The long-term association with various initiatives of the Disney Worldwide Outreach in India will allow us to reach many more such children. A wish fulfilment makes a sick child believe that anything is possible, making the impact of this association immeasurable. Most of the children gathered had diseases like Thalassemia and cancer and some carried HIV. With efforts like these, we aim to create a wonderful feeling altogether."

Talking about the reason for choosing Disney characters, she says that children are increasingly watching channels like Cartoon Network. "That's the reason we see more cartoon channels on air, and merchandise of cartoon characters selling like hot cakes. With so much happening between kids and cartoons, meeting their dear characters also becomes part of their wish-list," she explains.

Rajat Jain, managing director, The Walt Disney Company (India), too, agrees with Adyanthaya. "It is heartening to see children's eyes light up with happiness and laughter each time they come close to any Disney experience. It gives me great pride to initiate our association with Make-A-Wish Foundation in India, which is over 25 years old in other parts of the world. Through all of our programmes and our work with the Make-A-Wish Foundation, we are committed to supporting the realisation of the special wishes of children that bring joy to them in so many meaningful ways."

Walt Disney works for orphan and underprivileged children across the world. The company contributed 142,000 hours last year working for programmes meant to delight them.

Also present on the occasion was Dr Anupam Sibal, group medical director and senior paediatrician, Apollo Hospitals, who too applauded the effort. "Children with chronic diseases have to go through difficult and prolonged treatment. Any initiative that brings their smile back is so gratifying, and who can do this better than the Walt Disney characters, that all children cherish."

Adds Anne Marie Moncure, MD, Indraprastha Apollo Hospital, "We at Apollo believe that hospitals and healthcare are not just about medicines and medical care. There is no better medicine than laughter, joy and caring. And this holistic approach to care of children with special needs is of utmost importance and we are pleased to provide that to each and every child."

Set up in 1980, the Make-A-Wish Foundation grants the wishes of children suffering with fatal ailments to enrich them with hope, strength and joy. Initiated by a group of caring individuals to help a young boy accomplish his dream of becoming a police officer, the foundation is now one of the largest wish-granting charities in the world.

Granting more than 11,700 wishes a year and 144,000 wishes worldwide since its inception, the foundation celebrated its 25 years of making wishes come true in 2005.

Sword Sequence Tops in Dead Man’s Chest