Disney and Pixar Sever Ties

Pixar Animation Studios ended its 13-year film-making and distribution partnership with Walt Disney Co. last week after 10 months of unsuccessful negotiations.

The negotiations broke down after Pixar demanded all profitson its films and planned to pay Disney a 10% distribution fee. Under a 1997 contract, Pixar and Disney split profits and costs evenly, with Disney taking additional distribution fees. Disney also cross-promoted the movies across its theme parks, retail stores and television outlets.

The partners previously worked together to create computer-animated blockbusters such as Finding Nemo and Toy Story. Under the current contract, Pixar has two remaining films with Disney, The Incredibles due in theaters this fall and Cars to be released in 2005.

Pixar CEO Steve Jobs has met with Warner Brothers, Sony Pictures and 20th Century Fox to discuss future distribution deals.