Guess I can't put this in the news section myself. There's an exerpt in the San Jose Mercury News from the new book about Jobs that tells of Disney and Pixar. A bit is below, the whole thing is here:
http://www.mercurynews.com/mld/mercurynews/11537132.htm

"The essence of the clash between Steve Jobs and Michael Eisner was revealed in one moment of the Pixar-Disney partnership. Shortly before ``Finding Nemo'' was released in 2003, Eisner met with the Disney board of directors and offered a prediction: Pixar was headed for a ``reality check.'' Early clips of the clown fish movie had failed to impress him, he said. The movie paled in comparison to ``Toy Story'' or ``Monsters, Inc.'' and would not sell as many tickets.

It was as if Eisner were reveling in the idea of a Pixar dud. Such a stark reality check would give him bargaining power in the upcoming contract-renewal negotiations with Steve Jobs. If ``Finding Nemo'' flopped at the box office, Steve would lose the leverage he had gained from previous Pixar blockbusters. Unlike the last negotiation, he would not be able to push for more favorable terms. Eisner desperately needed to protect every dime of Disney profits, which had slipped an incredible 41 percent in the first quarter of 2003. Though Disney would lose profits in the short term with a ``Nemo'' flop, it would win in the long term with a favorable Pixar-Disney contract."

kind of a silly thought, don't you think? why would it be in disney's best interest to be in partnership with a company that fails, even if it's at a good deal?

pixar wanted more than what they were getting after 7 films, just like any actor demands more money if they do a sequel to a successful film, which is why things like these are negotiated nowadays before the whole thing began. originally, pixar had a 3 picture deal and as soon as they began seeing the success of toy story, eisner moved to renegotiate, which essentially allowed them to even get as far as nemo. after toy story 2, who knows what pixar would have asked for and it may not even gone as far as nemo.

And just think, Disney had the opportunity to buy Pixar when they were first starting out, but Eisner said NO!!! He should be kicking himself

kind of a silly thought, don't you think? why would it be in disney's best interest to be in partnership with a company that fails, even if it's at a good deal?

Same reason you want a local housing market to slip a bit when you're looking to buy and then rebound strongly. It's all in the timing. If you swapped A Bug's Life and Finding Nemo in their release order I'm guessing the relationship wouldn't have gone so downhill.

well of course, but only because pixar wouldn't be the one holding all the chips. it's all in who has the upper hand.