Pixar Merger Essay

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Walt Disney has agreed on February 17th agreed to acquire Pixar, the animated film studio, in a $7.4 billion deal ($6.3 billion in stock plus $1.1 billion of the company's cash) it hopes will give new life to its animation department and better position the company to compete in the digitalized media, while noting that the price tag may water down Disney’s profits in the near term. The deal also gives Pixar and Jobs unprecedented access into what is perhaps the world's most renowned entertainment brand, bringing together Disney's historic franchise of animated characters, such as Mickey, Minnie Mouse and Donald Duck, with Pixar's stable of cartoon hits, including the two "Toy Story" films, "Finding Nemo" and "The Incredibles."
Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders. Several Pixar executives will oversee Disney's animation unit along with their own operations. Risks include: The issuance of shares of Disney common stock to Pixar shareholders in the merger will initially have a negative impact on the earnings per share of the combined company and will decrease the aggregate voting power of current Disney stockholders and certain directors and executive officers of Pixar have interests in the merger that may be different from, or in addition to, the interests of Pixar shareholders. Steve Jobs, …show more content…

’s founder, is to become Disney’s biggest shareholder, and Pixar executive, Ed Catmull, will take the position of the president of the merged studios, while Pixar’s creative guru, John Lasseter will take

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