Steve Jobs is on track to become the single largest individual shareholder in Disney stock if the rumors that the Magic Kingdom will buy Pixar come true. In addition to his duties as Apple’s CEO, Mr. Jobs is also the chairman and CEO of the wildly successful Pixar animation studio. According to the Wall Street Journal, the two companies are close to signing a purchasing deal that will enhance and extend their partnership.
The deal has Disney paying a nominal premium to Pixar’s current market value of US$6.7 billion. The stock transaction would ultimately make Mr. Jobs the single largest share holder in Disney stock, giving him an even more powerful and influential position in the entertainment market.
Pixar and Disney have been partners in animation for years. Pixar produces block buster movies, like Toy Story, Monsters Inc., Finding Nemo, and The Incredibles, and Disney distributes them.
In addition to Pixar’s partnership with Disney, Mr. Jobs also works with the entertainment giant on another front. Disney is distributing some of its television programming like Desperate Housewives, Lost, and That’s So Raven through the iTunes Music Store. Several Pixar shorts that it owns the distribution rights to are also available.