According to Reuters, the Walt Disney Co. is in serious talks about purchasing Pixar Animation Studios, the Wall Street Journal said on Thursday, citing people familiar with the matter.

The terms under discussion would have Disney dole out a small premium to Pixar's current stock market value of $6.7 billion. The deal would be a stock transaction and make Pixar Chief Executive Officer Steve Jobs (co-founder of Apple Computers) the biggest individual shareholder in Disney, the Wall Street Journal reported.

The paper also noted that the talks are currently at a "sensitive stage" and other options are possible, including an agreement for Disney to distribute Pixar films.

The two companies have been partners since Pixar began making feature films with Toy Story. In their current deal, Pixar and Disney split costs, and Disney has sequel rights to Pixar films.