The Walt Disney Company and Pixar Inc. to Acquire or Not...

The Walt Disney Company and Pixar Inc. To Acquire or Not to Acquire? Andrii Alekseienko Corporate Strategy Case Study 18 September, 2015 The Walt Disney Company and Pixar Inc. To Acquire or Not to Acquire? To answer the main question of the case, we must think of the main problems that it faces. We need to find the solution for Bob Iger. What to do with Disney: to make some improvements in the existed company to compete better with Pixar, or to make a deal with another studio? Or should he work more with Pixar, or maybe just buy the whole company? To answer this questions, I will use two tools: better-off test and ownership test. At first, Disney and Pixar can just stay at the same place, and make some reorganization in the†¦show more content†¦I think that it’s the best decision in this situatuion: let Pixar do their job with the help of the Disney distribution channels. But that’s just the theory. On practice, it’s gonna be much harder to combine different corporate cultures, because both Disney and Pixar used to work with their usual style. Release Date | Movie | Production Budget | Worldwide Box Office | Nov 22, 1995 | Toy Story | $30,000,000 | $364,402,211 | Nov 20, 1998 | A Bugs Life | $45,000,000 | $363,089,431 | Nov 19, 1999 | Toy Story 2 | $90,000,000 | $511,329,494 | Nov 2, 2001 | Monsters, Inc. | $115,000,000 | $559,757,719 | May 30, 2003 | Finding Nemo | $94,000,000 | $936,429,370 | A long time ago Disney company turned into some kind of Hollywood  «machine » of making animation hits with the same parttern and also they missed the moment when computer animation has become much more interesting in the audience of animated cartoons. Pixar is representing some kind of new wave (especially, on the technological side) in the cartoon field . Also, they are succesful. Teir  «Toy Story » and  «Finding Nemo » were real hits: Buying energetic, young and creative Pixar, Disney intends to regain lost ground. But, they must do that in a smart way, to satisfy the needs of the Pixar owners, shareholders and employees. Back to the ownership test, the Disney ownership of Pixar will produce a greater competitive advantage for them. They will lose a powerful competitor, and will produce somethingShow MoreRelatedThe Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire?1593 Words   |  7 Pagesï » ¿1) The acquisition of Pixar would be beneficial to Disney due to how both companies’ businesses are related. This related acquisition would lead to the formation of more synergies and hence create value through the integration of their resources and capabilities. By acquiring some of Pixar’s core competencies and strengths, Disney may realise a new growth potential while reinforcing its strategic competitiveness. 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Through defining both company the write of this report willRead MoreCase Study : Walt Disney Company5336 Words   |  22 Pages1 – Chapter One 1.1 – Case Study Background: The Walt Disney Company was founded on October 16, 1923 when Mr. Walt Disney signed a contract with Mr. Winkler for producing a series of Alice Comedy. Then the company never stop. Its first cartoon Trolley Troubles was released in 1927 whereas, very first â€Å"Mickey Mouse† cartoon was released in 1928 and it was also the first appearance of â€Å"Minnie Mouse† on screen. Moreover, the first full-colour cartoon Flowers and Trees was released in 1932 whichRead MoreDisney Pixar1111 Words   |  5 PagesThe partnership between Pixar and Disney has deep roots, going way back to 1991. The first result was 1995’s Toy Story, which revolutionized the world of computer animation. Ever since, Pixar films have been distributed by the Walt Disney Company, proudly displaying both the Pixar logo Luxo Jr. and the Disney castle. Disney recently acquired Pixar Studios at a price of over $7.4 billion. The terms include giving Jobs an estimated 7% stake in Disney and letting Pixar s top creative executiveRead MoreDisney and Pixar Alliance2230 Words   |  9 PagesDisney and Pixar have created many recognizing animation together over a decade that most people might not know that. The alliance has proven a success from many animations like Toy Story, Finding Nemo, Up and etc. Both company have allies to make many animation which led to Disney acquire Pixar. The alliance looks like a simple task at first for both companies as they only contribute certain resources to the partnership but the more time passes the more difficult it’s become. The relationship was