Professional Documents
Culture Documents
Television
Sales 62
Disney Distribution Fee -8 -12.50%
Net Revenue To Partners 54
Production Costs (shared equally) -10 -16.13%
Partners Income 44
Pixar Revenue 27
Pixar Income 22
Disney Income 30
Total
Pixar Revenue 255
Pixar Total Income 199
As a % of total Income 39%
Disney Total Income 316
As a % of total Income 61%
Television
77 Sales
-10 Disney Distribution Fee
67 Net Revenue To Partners
-12 Production Costs (shared equally)
55 Partners Income
34 Pixar Revenue
27 Pixar Income
37 Disney Income
Total
282 Pixar Revenue
233 Pixar Total Income
39% As a % of total Income
361 Disney Total Income
61% As a % of total Income
OPTION 1 ($ million) OPTION 2 ($ million)
Distribution Deal
Worldwide Box Office Worldwide Box Office
NA Domestic Box Office
NA International Box Office
NA Total Theatrical Gross
247 Theatrical Net
-39.92% -99 Marketing and Distribution Costs
-8.00% -20 Disney Distribution Fee
129 Net Revenue to Partners
-4.36% -11 Production Costs (Shared Proportionately)
118 Profit to Pixar
129 Pixar Revenue
118 Pixar Total Theatrical Income
86% As % of Total Theatrical Revenue
20 Disney Total Theatrical Income
14% As% of Total Theatrical Revenue
Television Television
77 Sales
-8.00% -6 Disney Distribution Fee
71 Net Revenue To Partners
-16.13% -12 Production Costs (shared proportionately)
58 Partners Income
71 Pixar Revenue
58 Pixar Income
6 Disney Income
Total Total
609 Pixar Revenue
511 Pixar Total Income
86% As a % of total Income
82 Disney Total Income
14% As a % of total Income
OPTION 2 ($ million)
Distribution Deal + Equity Ownership
Worldwide Box Office Equity ownership (in mn)
NA Market Capitalisation
NA P/E
NA Earnings
247 Number of shares outstanding
-39.92% -99 Price per share from market cap
-8.00% -20 Price per share from estimates PE
129 Average price per share (Exhibit 10)
-4.36% -11 Percentage equity ownership
118 Investment requirement
64
59 Disney share price
43% Number of shares to be given
79 Total shares outstanding
57% % needed to be given
602
-19.78% -119
483
-19.24% -116
-8.00% -48
319
-9.44% -57
262
159
131
179
Television
77
-8.00% -6
71
-16.13% -12
58
35
29
35
Total
305
256
43%
338
57%
nership (in mn)
5900
46
141.7
20 (In 1997, 5% was bought or 1mn shares)
295
325.91
350
50%
3500
25
140
$ 2,043.00
6.85%
0.772853
Pixar Dreamworks Animation
Five Movies (1995-2003) Eight Movies (1998-2004)
Total Revenues Average Per Movie % of total revenues Total Revenues
Box Office 1236 247 23.7% 1069
Home Video 3103 602 59.5% 2345
Television 385 77 7.4% 335
Merchandise 495 99 9.5% 224
Dreamworks Animation
Eight Movies (1998-2004)
Average Per Movie % of total revenues
134 26.9%
293 59.0%
42 8.4%
28 5.6%