While Walt Disney Co.s deal with Pixar Animation Studios was once criticized, the deal made by Disney CEO Bob Iger has now returned the creative and financial magic back to Disney. In September 2005, Iger came to a realization during the opening ceremonies for Hong Kong Disneyland because the festival had many features but noticeably lacked something: Iger realized that there was not a character in the festival that had come from a Disney animated film in the last 10 years except from Pixar. So one month later, Iger set out to correct that failure. At his first regularly scheduled board meeting, Iger updated his fellow board members about talks he was having with Pixar, the animation house that was using Disney to distribute its feature films since 1995s successful release of Toy Story through 2007s hit Ratataouille. Iger announced a merger agreement between Disney and Pixar in January 2006. Skepticism was the initial reaction to Igers annexation of Pixar to Disney, but the skepticism eventually subsided as Disneys financial performance soon drove its stock price up 26 percent on an adjusted basis since the announcement of the deal. The Pixar deal enabled Disney to not only recapture its storied past but also to secure enough of animations strongest franchises to have a much more promising future, thus aligning Disney for the first time in years. Whether the franchise originates with Disney or Pixar, the same drill remains: apply all useful distribution and marketing mechanisms to prolong the franchise life of a given property, to enhance its library value, and to sustain a broad earnings base, according to a spokesman. For Disney to remain the Magic Kingdom, Iger had to act on his observations at the Hong Kong opening in September 2005.