The Walt Disney Co. will purchase Pixar Animation Studios -- creator of films such as "Toy Story" and "The Incredibles" -- in an all-stock deal valued at 7.4 billion dollars, officials with both companies said Tuesday.

The acquisition of Pixar, credited with pioneering computer animation films, is expected to return Disney to the top of the Hollywood animation film business. Pixar was also the studio behind hits like "Finding Nemo," "A Bug's Life" and "Monsters, Inc. "

Disney has marketed and distributed Pixar's films, sharing profit and costs, for more than a decade.

Talks about an acquisition began with discussions between Bob Iger and Steve Jobs -- the two companies' chief executives, respectively -- on extending the distribution pact.

The Disney board discussed the acquisition Monday, while the Pixar board conferred Tuesday before the long-rumored merger was made official early in the afternoon.

Under the deal, Disney will issue 2.3 shares of Disney stock for every Pixar share, and Jobs will join Disney's board of directors and reportedly become Disney's largest shareholder.

"Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," Jobs said. "Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world."

"With this transaction, we welcome and embrace Pixar's unique culture, which for two decades, has fostered some of the most innovative and successful films in history," said Disney chief executive Iger.

Source: Xinhua