Pixar Close To Deal With Disney

Pixar Animation Studio's board of directors planned to meet by phone Tuesday to discuss a deal with The Walt Disney Co., a person familiar with negotiations between the two companies told The Associated Press.

The person spoke on condition of anonymity because of the sensitive nature of the talks.

Published reports said Disney's board discussed the negotiations Monday and gave chief executive Bob Iger authority to complete a deal. The company could announce as early as Tuesday that it will acquire Pixar in a stock transaction, according to reports.

A Pixar spokesman would not comment late Monday on reports in The Wall Street Journal and The New York Times that a deal could be imminent. A Disney spokeswoman also declined to comment.

The reports come amid days of negotiations between the Burbank-based entertainment giant and Pixar.

In the deal under discussion, Disney could purchase Pixar in a stock transaction worth nearly $7 billion, the newspapers reported in Tuesday's editions, citing unnamed sources familiar with the plan. CEO Steve Jobs would become a member of Disney's board and its single largest shareholder.

Pixar, based in Emeryville, is the maker of a number of hit movies, including "Toy Story" and "Finding Nemo." Jobs is its largest shareholder, with more than 60 million shares, or 50.6 percent, according to Pixar's filings with securities regulators last year.

Disney and Pixar have been talking for months about a new relationship.

Disney has co-financed and distributed Pixar's animated films for the past 12 years, splitting the profits. But that deal expires in June after Pixar delivers "Cars."

Iger has made it clear that technology will be a cornerstone of Disney's success in the future. Having Jobs, who also heads Apple Computer Inc., as a member of Disney's board could strengthen the link between Disney's content and the technology that connects TV shows, movies and music to consumers.