Editing Pixar (section)

=== Collaboration with Disney (1999–2006) ===
Pixar and Disney had disagreements over the production of ''[[Toy Story 2]]''. Originally intended as a direct-to-video release (and thus not part of Pixar's three-picture deal), the film was eventually upgraded to a theatrical release during production. Pixar demanded that the film then be counted toward the three-picture agreement, but Disney refused.<ref>{{Cite news|access-date=April 22, 2008|url=https://archive.seattletimes.com/archive/20000804/4035397/sequels-to-toy-story-tail-go-straight-to-video|title=Sequels to 'Toy Story,' 'Tail,' 'Dragonheart' go straight to video.|work=[[The Seattle Times]]|first=John|last=Hartl|date=July 31, 2000|archive-date=September 28, 2012|archive-url=https://web.archive.org/web/20120928113108/http://community.seattletimes.nwsource.com/archive/?date=20000804&slug=4035397|url-status=live}}</ref> Though profitable for both, Pixar later complained that the arrangement was not equitable. Pixar was responsible for creation and production, while Disney handled [[Film marketing|marketing]] and distribution. Profits and production costs were split equally, but Disney exclusively owned all story, character, and sequel rights and also collected a 10%-15% distribution fee.<ref name="autogenerated1">{{Cite news |date=January 29, 2004 |title=Pixar dumps Disney |publisher=[[CNN]] |url=https://money.cnn.com/2004/01/29/news/companies/pixar_disney/ |access-date=April 22, 2008}}</ref>

The two companies attempted to reach a new agreement for ten months and failed on January 26, 2001, July 26, 2002, April 22, 2003, January 16, 2004, July 22, 2004, and January 14, 2005. The proposed distribution deal meant Pixar would control production and own the resulting story, character, and sequel rights, while Disney would own the right of first refusal to distribute any sequels. Pixar also wanted to finance its own films and collect 100% profit, paying Disney the 10%-15% distribution fee.<ref name="Dumps Disney">{{Cite news|access-date=July 26, 2015|url=https://money.cnn.com/2004/01/29/news/companies/pixar_disney/|title=Pixar dumps Disney|work=[[CNNMoney]]|date=January 29, 2004|archive-date=May 12, 2019|archive-url=https://web.archive.org/web/20190512115008/https://money.cnn.com/2004/01/29/news/companies/pixar_disney/|url-status=live}}</ref> In addition, as part of any distribution agreement with Disney, Pixar demanded control over films already in production under the old agreement, including ''[[The Incredibles]]'' (2004) and ''[[Cars (film)|Cars]]'' (2006). Disney considered these conditions unacceptable, but Pixar would not concede.

Disagreements between Steve Jobs and Disney chairman and CEO [[Michael Eisner]] caused the negotiations to cease in 2004, with Disney forming [[Circle Seven Animation]] and Jobs declaring that Pixar was actively seeking partners other than Disney.<ref>{{cite news|access-date=April 22, 2008 |url=https://www.wired.com/techbiz/media/news/2004/01/62104 |title=Pixar Says 'So Long' to Disney |magazine=[[Wired (magazine)|Wired]] |date=January 29, 2004 |url-status=dead |archive-url=https://web.archive.org/web/20080502150349/http://www.wired.com/techbiz/media/news/2004/01/62104 |archive-date=May 2, 2008 }}</ref> Despite this announcement and several talks with [[Warner Bros.]], [[Sony Pictures]], and [[20th Century Fox]], Pixar did not enter negotiations with other distributors,<ref name="Grover, Ronald">{{cite web|url=http://www.businessweek.com/bwdaily/dnflash/dec2004/nf2004129_4222_db035.htm |title=Steve Jobs's Sharp Turn with Cars |author=Grover, Ronald |work=Business Week |date=December 9, 2004 |access-date=February 23, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20070311001731/http://www.businessweek.com/bwdaily/dnflash/dec2004/nf2004129_4222_db035.htm |archive-date=March 11, 2007}}</ref> although a Warner Bros. spokesperson told [[CNN]], "We would love to be in business with Pixar. They are a great company."<ref name="Dumps Disney" /> After a lengthy hiatus, negotiations between the two companies resumed following the departure of Eisner from Disney in September 2005. In preparation for potential fallout between Pixar and Disney, Jobs announced in late 2004 that Pixar would no longer release movies at the Disney-dictated November time frame, but during the more lucrative early summer months. This would also allow Pixar to release DVDs for its major releases during the [[Christmas shopping season]]. An added benefit of delaying ''Cars'' from November 4, 2005, to June 9, 2006, was to extend the time frame remaining on the Pixar-Disney contract, to see how things would play out between the two companies.<ref name="Grover, Ronald" />

Pending the Disney acquisition of Pixar, the two companies created a distribution deal for the intended 2007 release of ''[[Ratatouille (film)|Ratatouille]]'', to ensure that if the acquisition failed, this one film would be released through Disney's distribution channels. In contrast to the earlier Pixar deal, ''Ratatouille'' was meant to remain a Pixar property and Disney would have received a distribution fee. The completion of Disney's Pixar acquisition, however, nullified this distribution arrangement.<ref>{{cite web|access-date=April 22, 2008 |url=http://www.starpulse.com/news/index.php/2007/06/26/pixar_perfectionists_cook_up_ratatouille/ |title=Pixar Perfectionists Cook Up 'Ratatouille' As Latest Animated Concoction |publisher=Star Pulse |url-status=dead |archive-url=https://web.archive.org/web/20071027104117/http://www.starpulse.com/news/index.php/2007/06/26/pixar_perfectionists_cook_up_ratatouille/ |archive-date=October 27, 2007 }}</ref>