The Disney-Pixar Merger Essay - 2468 Words

Table of Contents Disney – Pixar Merger 3 Introduction 3 Aggressive cost cutting 3 Co-production agreement 4 The Financials 5 The Investment decision 5 How had this merger worked in the long run 7 Advantages 8 Disadvantages 8 Bibliography 10 Appendix 11 Exhibit 1 11 Exhibit 2 12 Exhibit 2a 13 Exhibit 3 14 Exhibit 4 4a 15 Exhibit 8 16 Exhibit 9 17 Exhibit 11 18 Disney – Pixar Merger Introduction The Walt Disney Company was established by the brothers Walt and Roy Disney on October 16th 1923 and is one of biggest entertainment and media’s company’s throughout the world. It is the largest of a number of television networks such as the American Broadcasting company together with 7 theme parks. Also in the 1930’s, Disney started to†¦show more content†¦Pixar’s contribution represented 10% of revenue and over 60% of total operating income over the period. The dynamics of theatrical and financial success changed completely, and new revenue streams were generated by other sectors (see Exhibit 3). By 2005, a structural change in profits occurred with the largest revenue sources was home video and not the theatrical box office. As for Pixar, the company was established in 1979, originally as a graphics group to form part of the computer division of Lucas Film Limited by John Lasseter and George Lucas. In 1986, Steve Jobs - who had left Apple Computer the year before—bought the Lucas Film computer business for $10 million. Later Steve Jobs established it as an independent company co-founded with Dr. Edwin E. Catmull and renamed the company to Pixar. Although it would be worth knowing that initially, Jobs intended Pixar to be a computer hardware and software company (see Exhibits 4 and 4a). Nonetheless, as an American computer animation film company, Pixar became an award winning company, best known for its creation of a string of animated films. It’s most popular films include the likes of Toy Story, The Incredibles and Finding Nemo, amongst others. Also on a side note, the release of Toy Story on November 22, 1995 was the biggest impact on the future of film making industry. In fact in 1995, Toy Story was the film which generated the highest earnings ofShow MoreRelatedDisney : Disney And Pixar Merger1187 Words   |  5 PagesDisney and Pixar Merger The strategy that led to the merger of Disney and Pixar was a simply business deal with two companies that has been working with each other for years. Pixar initially began in 1979 as the Graphics Group, as a piece of the Computer Division of Lucasfilm. The gathering basically chipped away at PC equipment. Apple prime supporter Steve Jobs later obtained the company in 1986. 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