Case Study of The Walt Disney Company and Pixar Inc Acquisition

For Disney, their animation segment is of immense importance considering their long history and fame associated with cartoon series and movies. The animated characters from such movies drove revenue to the firm’s theme parks and popularizing the company’s commercial merchandise. However, in the recent times apart from a few movies, Disney has not been able to produce smash hits at the box office. This is seen to impact the legacy of Disney is respect of their animated characteristics which are losing its popularity. Also the firm has remained unsuccessful in developing new animated characters, which previously facilitated developing new attractions for its theme parks. For Walt Disney Studios investing in animated movies is therefore not only important for generating revenue, but also to maintain the legacy which was first started by Walt Disney in animated pictures. The firms association with Pixar Studios had facilitated the company to generate revenue and earn a certain degree of fame. However due to strained corporate relations between Steve Jobs, the CEO of Pixar and Michael Eisner, the former Chairperson of Disney, the contract was terminated in the year 2004. Now, when Robert Iger has been appointed as the new CEO of Disney, a prime motive of the company is to revive its relations with Pixar and to acquire the company. The current study evaluates the business strategies of Disney and Pixar and the relations existing between both the firms so as to suggest whether Disney must consider acquiring Disney.

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