caseism

Disney And Pixar Case Solution & Answer

Disney And Pixar Case Solution 

Introduction

This case is based on the merger and acquisition of two massive companies, i.e.Disney and Pixar.Both the companies are doing well in their relevant fields, but we have been asked to analyze this case in the context of “Integrating Organizational and Human Behavior Perspectives on Mergers and Acquisitions”. So before discussing it further; I would discuss about the companies’ backgrounds to have a better understanding of their cultures and employees’ behaviors. Walt Disney is a well-developed and a leading media company.

It was founded by Walt Disney and Roy Disney in 1931.According to a report prepared by (Stawicki, 2016); Disney is considered as the leader of entertainment services and its other business segments. The company’s holdings include: ABC, the Disney Channels and ESPN, which have been delivering unique and extraordinary content that cannot be distributed or licensed to other media channels and players in the industry.It started with an initial contract with M.J Winkler and introduced the first character of Mickey. Throughout the time period; Disney enjoyed success but after the death of Walt Disney; the company’s performance was affected and later the company came up with resort openings and other services.

Whereas Pixar is a digital animation company, which was established in 1986 with the name of Lucas Film Computer division. It produces animated feature films.Disney acquired this company in 2006 with $7.5 Billion. Disney was basically interested in the technological products of the company. The famous movie “Toy Story 3” was released,and this movie brought enormous success to Disney. Bob Iger focused on developing or creating content that customers would actively seek for. He wanted to push creativity in Disney’s operations. Iger was a technology enthusiast who had advocated to increase the usage of technology to make Disney related content available around the globe.

So, this case basically discusses about the merger and acquisition of the companies as, Pixar was willing to have dialogues over better terms and conditions with Disney. So it did depend on Disney whether it wanted to be merged with Pixar or continue its operations without pursuing this merger. And according to the case requirements; we have to analyze the integration of organizational and human behaviors on merger and acquisition. As soon as Bob Iger took the responsibility of the CEO in 2005; he immediately took steps to revive the ragged relationship with Pixar. Iger contacted Steve Jobs (owner of Pixar studios) and showed willingness in starting a new journey with the company. Both Iger and Jobs opened negotiations and aimed to make Disney a Pixar-friendly company.

Disney and Pixar signed the contract in 1991 for the first time,for animated movies in collaboration. The contract was going well and both the companies were performing their best. The agreement mentioned that the production cost would be paid by Disney and the participation fee would be paid by Pixar. Pixar got $56 million returns and came up with famous movie “Toy Story 3. Again in 1997, the company again begun negotiation over movie that cost $120 and this cost would be divided between both the companies. In 2002,the companies tried to renegotiate the contact but Disney wanted to keep with the old contact because it was beneficial for Disney as it was getting the control of the distribution rights for more than five years, and then it was decided that this right would be handed over to Pixar for a certain period of time…………………..

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