Disney & Pixar

Merger
Disney & Pixar
Vertical Merger

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, Jan 25, 2006
 Disney
CEO : Bob Iger (1 Oct 2005–)

Headquarters: Burbank, California, United States

Revenue : 52.46 billion USD (2015)

Founded : 16 October 1923, Los Angeles, California, United States

Net income : 8.38 billion USD (2015)

Subsidiaries : Pixar, Walt Disney World, Disney Store, ABC, ESPN,

Disneyland, Lucasfilm and Marvel Studios etc.

Founders : Roy O. Disney, Walt Disney

Founded : 3 February 1986
Headquarters: Emeryville, California, United States
Acquisition : 2006
Founders : Alvy Ray Smith, Edwin Catmull
Parent Company: The Walt Disney Company
 In 1986, Steve Jobs purchased the computer graphics
division of Lucas Film Ltd. for $10 million and established
it as an independent company named Pixar , co-founded
with Dr. Edwin E. Catmull.
On November 22, 1995, Pixar Animation Studios forever
impacted the future of filmmaking with the release of its
first feature film, Toy Story. The film went on to become
the highest grossing film of 1995 with $362 million.
 Success Factors
The key reasons for the success of the merger of the two
companies was that ;
1) investors saw potential for Disney to leverage on Pixar’s
computer animated character to be used in its vast
networks. One successful example was “cars”. The
revenue in retail products from “cars” was over $5
million.
2) Pixar’s willingness to change so as to be a part of the
international conglomerate helped.
 The companies not only followed normal tactics for
successful mergers but also came with some
different ones.
Pixar created a list of things that would not be
changed so as to preserve its culture like Pixar
employees didn’t sign employment contracts.
 Bob Iger ensured that Pixar employees get mixed
in the new environment.
Presented by: GANESH REDDY MEKALA