If You Invested $1,000 In Disney Stock When They Acquired Pixar, Here's How Much You'd Have Now

Zinger Key Points
  • Disney acquired Pixar on Jan. 24, 2006, valuing the animated film company at $7.4 billion.
  • A look at an investment in Disney stock since the acquisition was announced.
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The acquisition of Pixar by The Walt Disney Company DIS changed the media company forever and has helped Disney dominate the box office ever since with several of the top-grossing franchises and movies.

What Happened: Disney acquired Pixar on Jan. 24, 2006, valuing the animated film company at $7.4 billion. The acquisition was one of several large deals done under the leadership of Disney CEO Bob Iger, who has now returned to lead the company.
“The acquisition combines Pixar’s preeminent creative and technological resources with Disney’s unparalleled portfolio of world-class family entertainment, characters, theme parks and other franchises, resulting in vast potential for new landmark creative output,” Disney said at the time.
Pixar titles have been massive at the box office with six of them grossing more than $300 million at the domestic box office.

Pixar was co-founded by Apple Inc co-founder Steve Jobs, who owned 50.6% of Pixar shares at the time of the deal. Jobs became a large Disney shareholder after the merger.

Disney recently announced that it is planning a fifth Toy Story movie, extending the life of one of the oldest and most successful Pixar franchises. The last two Toy Story movies each grossed over $400 million domestically and over $1 billion worldwide.

Pixar was a big part of the success of Disney over the last 16 years and is likely to be a big part of the future of the media company. With the announcement of “Toy Story 5” and other Pixar movies in the pipeline, the acquired company will likely remain an area of focus for shareholders and analysts.
Here’s a look at how Disney shares have fared since the acquisition.

Related Link: Disney Q1 Earnings Highlights: Theme Park Growth, Disney+ Subscribers, Average Revenue Per Subscriber And More 

Investing $1,000 in Disney Stock: Shareholder who bought into Disney at the time of the Pixar deal have fared well.
A $1,000 investment in Disney shares at the intraday high of $25.78 on Jan. 24, 2006 would’ve been able to purchase 38.78 shares.
The 38.78 shares would be worth $4,190.95 today, based on a share price of $108.07 for Disney stock at the time of writing.
This represents a return of 319.1% over the last 17 years. The investment would have returned around 18.8% annually since the acquisition of Pixar was announced.

Read Next: Disney+ Subscribers, Cost Cuts, Park Growth, What's The Biggest Item For Disney Analysts 

Photo: Shutterstock

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