Walt Disney's board has given has company CEO Robert Iger the nod to make a $7 billion offer to buy Pixar.

Disney is expected to make an all-stock offer, which would make Steve Jobs, Apple CEO and also Pixar CEO, Disney's largest individual shareholder. Jobs is also likely to receive a throne on Disney's board.

Jobs is also CEO of Apple. Apple's iTunes Music Store sells many TV shows - such as Lost and Desperate Housewives -from Disney's ABC television arm for its video-enabled iPods.

"The acquisition will usher in a new era in which Disney, with Jobs and Disney CEO Bob Iger allied, could rewrite the rules of how entertainment is distributed digitally via new consumer technologies," opines BusinessWeek.

The deal is expected to be offered "by Tuesday", Reuters reports. Pixar's board is expected to consider the offer on the day it is made.

Pixar's top creative executive, John Lasseter, will also land a crucial role in advising Disney's creative teams. Pixar will continue to be based in California.

Pixar shares closed at $58.27 on Monday, after climbing 12 per cent so far this month on strength of the deal.