YORK - Mickey Mouse and Nemo are now corporate cousins. Walt Disney has announced that it is buying Pixar‚ the animated studio led by Apple head Steve Jobs‚ in a deal worth $7.4 billion. Speculation about a deal being imminent raged on Wall Street for the past few weeks. Disney has released all of Pixar’s films so far‚ but the companies’ current distribution deal was set to expire following the release of this summer’s "Cars." The merger brings together Disney’s historic franchise of animated characters
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Walt Disney-Pixar Merger Brief Industry Analysis Because of the technology nowadays‚ one successful film can be distributed all over the world‚ which is in a form of motion pictures or DVD. Animation is one media that is spread all over the world; push it to be one of fastest growing industry. The demand for the animation is increasing from the emerging number of cables and satellite TV and the popularity of The Internet. In addition‚ in the past‚ the target market of the animation industry
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Making Disney Pixar Into A Learning Organization * James M. Haley and Mohammed H. Sidky This study examines how leadership‚ teamwork‚ and organizational learning can contribute in making mergers and acquisitions work. Our intention is to identify critical factors and practices needed for merger success. Our research is part of an ongoing project‚ and builds on previous analysis of merger success/failure in such organizations as Standard Oil‚ Exxon Mobile‚ and Time Warner-AOL. In this paper‚ we
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The 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 executive
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The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire Economics of Strategy and Organization Are Disney and Pixar better together? Positive Aspects The co-production agreement between Disney and Pixar has led Disney to rely on revenue and characters produced by its partner. Pixar CG movies contributed more than $3.5 billion to Disney Studio revenues and around $1.2 billion to Disney’s operating income which represented 10% of revenue and 60% of total operating income of Disney
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Disney! Pixar Practicum Case Final Write-up Group 2: CEN‚ Cate FORNACIARI‚ Jacopo GUPTA‚ Nikhita KEATING‚ Alex LEE‚ Joon 1 EXECUTIVE SUMMARY Disney currently faces difficult decision regarding its relationship with Pixar. Although previous collaborations with Pixar have brought immense success for Disney in terms of revenue and recognition‚ Pixar’s CEO Steve Jobs has been trying to negotiate a fairer deal with no success. Disney wishes to stay with previous negotiation terms‚ as it is more favorable
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This case study primarily deals with three main issues. The first issue this study addresses is the strategies (Vertical integration/outsourcing) of Disney and Pixar. Secondly‚ the contractual agreements between Disney and Pixar will be discussed. Lastly‚ the variation in the organizational culture of both companies will be considered in this case study. Walt Disney’s’ first feature animation was in 1934 with the production of Snow White and the Seven Dwarfs. Profits in this industry were not
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Pixar 2001 The Future of the Disney Alliance I. Introduction It was Monday morning‚ November 5‚ 2001. Steve Jobs‚ CEO of Pixar Animation Studios‚ had just finished reviewing the opening weekend box office receipts for Monsters‚ Inc.‚ the latest theatrical release produced by the partnership between Pixar and Disney. He sat back and pondered the future of his company and its relationship with Disney. Jobs needed to consider the brand equity that Pixar had established through its recent
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Over the past few decades Walt Disney has dominated family entertainment. However‚ development of technology has changed the situation and the industry has become competitive. Pixar is a pioneer with its proprietary computer animation technology leading the animated film industry. This means computer-generated effects (CG) have replaced hand-drawn animation‚ which is Disney’s strength. On the other hand‚ the collaboration between Disney and Pixar has rejuvenated Disney. This report will firstly explain
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acquisitions to pay off‚ they ought to pass four tests. I describe the tests below‚ showing how each offers a way to head off common sources of merger malfunction. The Industry Attractiveness Test If the industry in which the acquired company participates has the potential to remain profitable‚ then the target passes the industry attractiveness test. One reason that mergers fail is that the inherent profit potential of the target company’s industry is low. That is‚ the average player in the industry does
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