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Disney and Pixar - Merger and Acquisitions

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Gladys Claire Seranilla

on 5 September 2012

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Transcript of Disney and Pixar - Merger and Acquisitions

Disney - Pixar Merger (2006) Background of the Companies Walt Disney Pixar Walt Disney is one of the leading companies in the world that provides entertainment experience since its founding in 1923. Four Business Segments: Walt Disney studio produces animated features and live-action motion pictures distributes Disney and other films to the rental and home entertainment markets to the world one of the largest producers of Broadway musicals - Disney on Ice
- Disney Live Entertainment produces original music and motion picture soundtracks Parks and Resorts the first park was established in 1952 it includes Disney Cruise Line
eight Disney Vacation Club resorts
also has five resort locations which composed with 11 theme parks on three continents Media networks presents a wide array of broadcasting, cable, radio, publishing and Internet businesses. an Academy Award-winning computer animation studio with technical, creative, and production capabilities to make a new generation of movies, merchandise, and other products. in 1987, Pixar's short film was introduced, Red's Dream. in 1988, Tin Toy won an Academy Award for Best Animated Short Film. in 1989, Knick Knack and RenderMan were launched in 1990, the company office was moved to a one-story building in Point Richmond, California. Reasons for Merging Effects of the Merging Which management prevailed? Inputs of the group Disney Pixar to acquire technology, to complement or replace the currently used one the decrease in competition is another motive for Disney Disney can also increase its revenue by merging with Pixar. to focus more on core strengths in producing the computer animation to gain the benefit of being able to produce the other lines of products. It created transformational leadership and organizational learning between the two companies. The acquisition of Pixar by the Walt Disney Company increased the overall welfare of both companies and their employees. Disney voluntarily held back forcing its culture upon Pixar. Disney tightened its link with Apple Computer. Since January 24, 2006, when Disney acquired Pixar, Pixar executives have been in charge of the joint animation group. Change has been in the works. Pixar Executive Vice President, John Lasseter, would become Chief Creative Officer of the combined Disney-Pixar animation studios as well as the Principal Creative Advisor at Walt Disney Imagineering, which designs and builds company's theme parks in order to help the design for new attractions at Disney theme parks. Current Pixar President, Ed Catmull, would become President of new combined Disney-Pixar animation studios. Animation head Ed Catmull and fellow former Pixar executive John Lasseter have been slowly introducing their Pixar based management culture (with the added support of Disney shareholder and Board of Directors member, Steve Jobs). While bottom line revenue is important, there is a separation of powers when it comes to development. The merger between Pixar and Disney was indeed a success for them. Most of the movies they have done were always a blockbuster for the whole world to see. They were able to further strengthen their reputation and at the moment, the company is at the top of the animations industry. Merger success can be greatly enhanced when organizational culture is based on learning. In our view, effective and efficient organization learning can emerge if there are diverse learning teams, led by leaders sharing a common strategic vision, and embedded throughout the organization.
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