Case ID: 709462     Solution ID: 29262     Words: 1377 Price $ 45

The Walt Disney Company and Pixar Inc To Acquire or Not to Acquire Case Solution


The contextual analysis arrangement has a tendency to portray an imminent procurement of Pixar by Walt Disney for $7.4 billion as for a transformation proportion of 2.3 shares of Disney. Disney as a conglomerate consider the securing from a synergistic perspective, whereby taking into consideration esteem creation instead of esteem obliteration. The critical part of the procurement is that Pix would hold its brand image and the Pixar culture, with respect to creativity, office, representative standards and directions, et cetera. Nonetheless, the future movies of Pixar would be titles Disney Pixar. Disney thinks of it as imperative regarding lessening rivalry, knowledge sharing, skill sharing, human asset sharing, and the multiplication of thoughts, which have turned out to be moderately repetitive for Disney throughout the years.

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Questions Covered

  1. Which is greater: the value of Pixar and Disney in an exclusive relationship or the  sum of the value that each could create if they operated independently of one  another or were allowed to form relationships with other companies? Why?
  2. Assuming that Pixar and Disney are more valuable in an exclusive relationship,  can that value be realized through a new contract? Or is common ownership  required (i.e., must Disney acquire Pixar?)
  3. If Disney does acquire Pixar, how should Bob Iger and his team organize and  manage the combined entity? What challenges do you foresee and how would you  meet them?