Pixar, Disney Trade Barbs About Breakup

LOS ANGELES - The already contentious relationship between Pixar Animation Studios and The Walt Disney Co. took a turn for the worse as the companies traded harsh words about their recent breakup.

Pixar chief executive Steve Jobs ended any hope Wednesday that the companies might continue their lucrative partnership by blasting Disney's own animation efforts and blaming the company for refusing to reach a compromise.

"The truth is that there has been little creative collaboration with Disney for years," Jobs said during a conference call with analysts to discuss the company's fourth quarter earnings.

"You can compare the creative quality of Pixar's last three films, for example, with the creative quality of Disney's last three animated films and gauge each company's creative abilities for yourself."

Pixar announced last week it was ending 10 months of exclusive talks to renew its deal with Disney to produce and distribute films. The company has two more films to deliver on its contract, including "The Incredibles," due out in November, and "Cars," to be released in 2005.

Jobs said Pixar offered Disney better terms that it knew it could get from other suitors, including "much higher distribution fees, a much longer term commitment and free use of our characters in their theme parks."

Talks broke down after Disney refused to include the last two films in the current deal in a new deal, Jobs said.

"We will truly miss working with Dick Cook and his terrific distribution and marketing teams," Jobs said, referring to the chairman of Walt Disney Studios. "And you would be hard pressed to find anyone who loves the original spirit of Disney more than John Lasseter, Ed Catmull or myself. But after almost a year, it's time to move on."

Lasseter, a former Disney animator, is the chief creative force at Pixar. Catmull is Pixar's president.

Disney spokeswoman Zenia Mucha said Jobs "grossly mischaracterized good faith negotiations" to extend an agreement that "has been beneficial to shareholders of both Pixar and Disney."