Disney Pixar

1111 Words5 Pages
Introduction: The partnership between Pixar and Disney has deep roots, going way back to 1991. The first result was 1995’s "Toy Story," which revolutionized the world of computer animation. Ever since, Pixar films have been distributed by the Walt Disney Company, proudly displaying both the Pixar logo "Luxo Jr." and the Disney castle. Disney recently acquired Pixar Studios at a price of over $7.4 billion. The terms include giving Jobs an estimated 7% stake in Disney and letting Pixar 's top creative executive, John Lasseter, have a key role in advising Disney in creative matters. Which party had more power? Disney or Pixar? Pixar definitely had more bargaining power while the deal was being negotiated. Though many feel that…show more content…
As part of the deal, Jobs became the largest shareholder at Disney and took a seat on the entertainment giant 's board. 2. No Financial dependence: Disney and Pixar previously shared the cost of making the films while Disney released them. This arrangement was scheduled to end when Pixar delivered the final film, Cars. Pixar made it no secret that it was hoping for a new, more favorable agreement with Disney. The current reality was that Pixar had strong cash reserves and no longer needed Disney 's to help finance films. Hence they delayed the release of Cars as a negotiation tactic. 3. The threat of competition: Disney 's previous relationship with Pixar represented a production-distribution arrangement that yielded production capital to Pixar and attractive distribution fees to Disney. The relationship may have seemed beneficial to Pixar before the success of its animated films. Now Pixar was in a position to source production and distribution capital more cost efficiently from other competing studios. While talking to Disney, Jobs also kept open the lines of communication with other studio executives. The possibility of Pixar establishing a distribution arrangement with a contending studio seemed a risk too great for Disney to take. Contending studios would have jumped readily into bed with Pixar on their terms, as it was a hot property because of the past successes. Moreover, during that
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