Once partners, the two animation giants split in a very public feud. Unable to come to terms on an extension of their distribution deal, they seemed to have parted ways, Disney's current deal with Pixar was set to expire after the completion of 'Cars', a Pixar movie due out in 2006. But now the two family entertainment giants are getting back together, and getting closer than ever.

Forget distribution deals, Pixar is now just another appendage of the Disney family. In exchange for surrendering their autonomy to Walt's boys, Variety says the Mouse has given Pixar Animation Studios a stock deal of $59 per share. Pixar's animation division then becomes a part of Disney's animation unit.

At the same time, Pixar and Apple CEO Steve Jobs gets a seat on the Disney board, and chief Pixar creative officer John Lasseter, as rumored earlier this week, takes over the whole operation. That should put Lasseter in charge not just of Pixar's animation division, but all of Disney's existing animation departments as well. It also puts him in a position to turn things around for them. Once the undisputed leader in animated moviemaking Disney has long since been eclipsed by Lasseter's work at Pixar.

The truth is, that for the past few years Pixar has been what Disney used to be. With this buyout putting Pixar people in positions of responsibility, maybe Disney can now be that again. With Eisner gone, Steve Jobs could be on the fast track to becoming the new Walt Disney.

Now that an agreement has been reached, the deal now goes to the company's respective boards for final approval.

Pixar has distinguished itself as the clear leader in computer animated family entertainment over the past decade. They've never not produced a hit, and their resume includes instantly classic films like 'Toy Story', 'Monsters Inc.', 'Finding Nemo', and 'The Incredibles'.