Furthermore according to th agreement and plan of

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“Agreement And Plan Of Merger” registered in SEC about this deal, Disney agreed to keep Pixar’s HR policy basically intact. It shows that Disney took motivation and loyalty of employees of Pixar fully into account to avoid having many employees leave due to the merger. In addition to separating Pixar at the organizational level, Disney tried to leverage Pixar’s brand and capability to enhance Disney. Instead of branding new films as new “Disney” product, it chose to keep “Pixar” brand by
Mergers & Acquisitionsusing “Disney-Pixar” brand for the products produced by Pixar after the merger (“Cars” was the first product distributed under the new brand). Furthermore, Disney appointed Steve Jobs as a board of director at Disney, Ed Catmull (president of Pixar) as a president of both Disney and Pixar animation studios, John Lasseter (Pixar’s creative director) as a chief creative officer of both Disney and Pixar animation studios. Having those persons fromPixar as top executive of Disney shows that Disney expects them to be an enabler to enhance Disney’s struggling performance in production.As we discussed already, Disney’s main target is not only the existing Pixar’s highly recognized product lines but also the talents who can make a difference in Disney’s future performance. To put it the other way around, Disney loses most of its fruits of the deal if it loses those talents. To prevent this, Disney put several clauses in the agreement. First, losing John Lasseter or Ed Catmull can be a deal-breaking event. Second, Disney named some key employees who are critical to keep Pixar’s creative capabilities and culture as required for employees to join new company. Those employees include Andrew Stanton, the director of "Finding Nemo"; Peter Docter, the director of "Monsters Inc."; Brad Bird, the director of "The Incredibles"; the director and writer Bob Peterson; the story artist Brenda Chapman; the editor and director Lee Unkrich; and the sound designer Gary Rydstrom.Benefits, Synergies and Trade-offs of the dealThe alliance between Disney and Pixar will yield great benefit to bothparties. The benefits for each partner can be identified as the followings.
Mergers & AcquisitionsDisneyTo acquire core strengths of Pixar in producing computer motionpictures. At the time Disney started developing its computer animationfilms, Pixar already generated more than 30 billion dollars from its 6animation motion pictures. Decrease in competition mainly because Pixar is the large player inthe industry in terms of developing and producing computer animationfilms, which in collaboration with Disney can greatly increase itsmarket power.Increase in revenue by merging with Pixar. Merging with Pixar will helpDisney to generate new sources of revenues from high-quality newtype of films and to get more profit from merchandise and theme parktickets.

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