Darkbeer
02-04-2004, 02:52 AM
Pixar's Power Play (http://www.fool.com/news/take/2004/take040203.htm?logvisit=y&source=estmarhln001999&npu=y&bounce=y&bounce2=y) - Motley Fool, 2/3/04
QuikQuote: But how can you not be excited about Pixar's future? After all, it was Pixar's fat margins and money-making record that made it a popular Motley Fool Stock Advisor stock recommendation. And can you blame Pixar for moving on? This was a company creating a quality product but taking in less than half the proceeds. When Disney CFO Tom Staggs announced that Pixar's demands were unreasonable because it would have cost Disney "hundreds of millions of dollars" that it was entitled to, how can you not do the math and see how Pixar will have the last laugh if it laughs alone? Now, it not only has the right to earn more than twice as much as it has in the past, but it also has the flexibility to call its own shots and ramp up its production schedule.
Of course, the concerns are not lost on me. Pixar will have to bankroll its future releases. Pixar had a good thing going with Disney. So what? Unlike most debt-laden movie studios, Pixar sports an immaculate balance sheet with $517 million in cash -- and growing. Financing won't be a problem.
QuikQuote: But how can you not be excited about Pixar's future? After all, it was Pixar's fat margins and money-making record that made it a popular Motley Fool Stock Advisor stock recommendation. And can you blame Pixar for moving on? This was a company creating a quality product but taking in less than half the proceeds. When Disney CFO Tom Staggs announced that Pixar's demands were unreasonable because it would have cost Disney "hundreds of millions of dollars" that it was entitled to, how can you not do the math and see how Pixar will have the last laugh if it laughs alone? Now, it not only has the right to earn more than twice as much as it has in the past, but it also has the flexibility to call its own shots and ramp up its production schedule.
Of course, the concerns are not lost on me. Pixar will have to bankroll its future releases. Pixar had a good thing going with Disney. So what? Unlike most debt-laden movie studios, Pixar sports an immaculate balance sheet with $517 million in cash -- and growing. Financing won't be a problem.