Group 2 EOS - Acquisition of Pixar by Disney Group 2...

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Acquisition of Pixar by DisneyGroup 2:Abhinav Prasar(PGP01002)Akhilesh Rai(PGP01007)Manvender Dagar(PGP01031)
Disney OverviewFounded on Oct 16,1923 by brothers Walt and Roy DisneyHeadquartered at Burbank, CaliforniaWorld’s second largest broadcasting and cable companyOwner of 14 theme parks & several TV networks such as ABC & ESPNWalt Disney’s first original animated character – Oswald the Lucky Rabbit
PixarBegan in 1979 as the Graphics Group, part of the computer division of LucasfilmSpin-out as a corporation in 1986 with funding by Apple Inc. co-founder Steve Jobs14 feature films and several short filmsReleased its first film in 1995 – Toy StoryThe film grossed $362 million and became the biggest grosser of 1995
A history of poor relationsBoth companies had a history of acrimonySteve Jobs abruptly called off talks to continue a lucrative partnership with Disney Jobs had often clashed with the CEO Michael EisnerEisner disparaged an Apple advertising slogan before a Congressional committeeAnalysts, investors and media pundits also questioned the hefty price Disney paid for a small studio that released only one movie a yearIn an industry where corporate marriages often create internal warfare, Disney and Pixar have found a way to make it workAfter 2 years, Disney’s stock climbed 28% since its 52-week low on Jan 22, 2008
Pixar’s EvolutionPixar has matured, allowing its strategic thinking to evolve inside a sprawling corporationSome of the studio’s executives once resisted sequels and direct-to-DVD efforts, arguing that quality and the brand could sufferThat has changed with films such as Cars 24 direct-to-DVD movies built around Tinker BellPixar team has oversight of Walt Disney Animation Studios and the DVD-focused DisneyToon StudiosOutsourced some direct-to-DVD animation to an Indian company, a departure from its rigid stance on outside animators
How are they making it work?Obvious tactics like effectively communicating changes to employeesMore unusual decisions on drawing up an explicit map of what elements of Pixar would remain unchangedRobert Iger agreed to an explicit list of guidelines for protecting Pixar’s creative culture

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