Disney-Marvel Merger
Disney-Marvel Merger
The Walt Disney Company has a major need to fill content since it has so many media outlets. Marvel Entertainment Inc. is just another company that can provide Disney the content they need to fill their programming and theme parks. In 2006, Disney acquired Pixar Animation Studio’s Inc. for $7.4 billion in stock giving them the rights to Toy Story. The article provides knowledge about the different levels of licensing and the importance of mergers and acquisitions. For Disney, acquiring companies is a common business practice and allows them immediate growth, lower costs, and increases market share. Marvel’s brand commands a 29% premium of its stock for Disney to acquire them giving Disney more brand popularity worldwide.
The strategic reasons for mergers: * * Synergy – revenue growth and cost savings * Increase in Economic Growth. * Acquiring new Technology. * Acquiring licenses, patents and procedures * Globalization * Capacity Reduction * Familiarity between organizations
* Increase Marketing and management capabilities. * Increases market share, customer segments and customer base. * Reducing the competition * Deregulations * To gain power and cash flows * Scaling Economies
The factors that are influential in implementing a merger: * Integration Plan: Combining corporate cultures, business processes, rewards system and hierarchy. * Strategic Fit: Organizations feel their strategic management is in line, creating a mutually beneficial synergy between both companies. * Rules & Regulations: Resistance from some employees may cause a problem and the organization should be prepared to manage the resistance. * Training & Development: The organization will incur training and development costs to align workers to the company’s quality level. * Stakeholders: Stakeholders have to be on board with the merger for the implementation of the merger
The Walt Disney Company has a major need to fill content since it has so many media outlets. Marvel Entertainment Inc. is just another company that can provide Disney the content they need to fill their programming and theme parks. In 2006, Disney acquired Pixar Animation Studio’s Inc. for $7.4 billion in stock giving them the rights to Toy Story. The article provides knowledge about the different levels of licensing and the importance of mergers and acquisitions. For Disney, acquiring companies is a common business practice and allows them immediate growth, lower costs, and increases market share. Marvel’s brand commands a 29% premium of its stock for Disney to acquire them giving Disney more brand popularity worldwide.
The strategic reasons for mergers: * * Synergy – revenue growth and cost savings * Increase in Economic Growth. * Acquiring new Technology. * Acquiring licenses, patents and procedures * Globalization * Capacity Reduction * Familiarity between organizations
* Increase Marketing and management capabilities. * Increases market share, customer segments and customer base. * Reducing the competition * Deregulations * To gain power and cash flows * Scaling Economies
The factors that are influential in implementing a merger: * Integration Plan: Combining corporate cultures, business processes, rewards system and hierarchy. * Strategic Fit: Organizations feel their strategic management is in line, creating a mutually beneficial synergy between both companies. * Rules & Regulations: Resistance from some employees may cause a problem and the organization should be prepared to manage the resistance. * Training & Development: The organization will incur training and development costs to align workers to the company’s quality level. * Stakeholders: Stakeholders have to be on board with the merger for the implementation of the merger
References: Disney Nabs Marvel Heroes - WSJ.com. (n.d.). Business News & Financial News - The Wall Street Journal - Wsj.com. Retrieved from http://online.wsj.com/article/SB125172509349072393.html List of assets owned by Disney. (n.d.). In Wikipedia, the free encyclopedia. Retrieved October 23, 2012, from http://en.wikipedia.org/wiki/List_of_assets_owned_by_Disney Mergers and Acquisitions: Definition | Investopedia. (n.d.). Investopedia – Educating the world about finance. Retrieved from http://www.investopedia.com/university/mergers/mergers1.asp#axzz2A8HKp4ol