Media Giant Walt Disney which distributes pixar films and owns the rights to characters are discussing ways to cement the relations of 2 companies together.

In 1997 Jobs and Disney boss Eisner struck a deal.Pixar paid 50% of the total cost of developing and producing the movies in return for half the cash from all sources. While Pixar produced major hits like Incredibles, Finding nemo and Toy story that earned 3 billion worldwide, Disney’s Atlantis, Treasure planet were flops.But later the duo clashed in private and in public. Pixar announced that it would terminate its arrangement with Disney after delivering its fifth and final movie “Cars” in 2006. Now Eisner has been replaced by Bob Iger who plans to merge the 2 companies together

Nobody’s certain whether or not Disney will actually acquire Pixar. Buying Pixar would not be easy for Disney. Since Pixar has done impressively well in the market recently, buying Pixar would cost Disney roughly $7 billion. If the Disney shareholders do not agree with that expense, it could send Disney stocks lower, something that the board will avoid like the plague. Disney may also gamble that they can do fine on their own by developing a separate Disney 3D animation studio.

Acquiring Pixar would also mean Jobs would be the number one private shareholder of Disney stocks, placing him on the Disney board. This would be good news for Disney, as it would add a noted and influential technologist to the Disney decision making process.It would also help Steve Jobs. Owning just over 50% of Pixar stock, if the company sold for $7 billion, he’d get a nice little $3.5 billion. It would also give him a formal foot into the door of Hollywood. As he takes his other company, Apple, in the direction of supplying online media content, this connection with Hollywood can only help.