KILKENNY -- I wish I was going to Annecy this June because Pixar will be in great form, sharing the joy of their continued commercial success with thousands of animators and spectators. Like the little Nemo that they created, Pixar assertively marked their independence by swimming away from Disney. This is a big shift, because the royalty stream for the first productions is not solidly established. Pixar's older movies like Toy Story and Monsters Inc. add up to 20% of revenues now, and that's expected to rise to 60% by 2007. Pixar also has no debt and has $500m in cash. Investing in Pixar today (PIXR $68) is like buying Disney stock in the 1930s.
Pixar has not deviated from making great movies. They also sell Renderman, their animation software. They have one movie in post-production (The Incredibles whose cutting room edits I will miss at Annecy) and one in production (John Lasseter's Cars), set to release in Ireland at the beginning of 2006.
If Pixar get a better cut at the box office (Disney gives them 50%), they will be in the realm of golden profits for the rest of this decade. They certainly have a golden touch for creativity.
Christine Chen -- "You oughta be in Pixar" in Fortune, March 8, 2004.