Case Study Of John Lasseter's Pixar

3175 Words13 Pages
2015

GREAT LAKES INSTITUTE OF MANAGEMENT, CHENNAI

MERGERS AND ACQUISITIONS

[DISNEY.PIXAR MERGER]

Disney was running ‘Save Disney’ campaign and the ties with Pixar were getting worse. Bob Iger replaced Michael Eisner as CEO of Disney and collaborated with Steve Jobs to craft one of the successful mergers in history. Disney acquired Pixar in 2006 to revive its animation studio. It made a lot of strategic sense to acquire Pixar for its highly creative, innovative and technically resourceful talent and a collaborative work culture which was inimitable. Post merger synergies were great as Pixar was given the management control of Disney animations, was allowed to retain its culture, and was also allowed remain as a separate entity. Disney’s
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Pixar produced Image Computers initially. To drive the sales, John Lasseter came up with animation demonstrations such as Luxo Jr. When the poor sales of computer business threatened Pixar, Lasseter’s animation department introduced computer animation commercials. Now, Pixar is a leading digital animation studio with the creative, technical and production capabilities to create animated feature films and related consumer products such as toys and video games based on Pixar characters. Pixar movies were/are being marketed and distributed by the Walt Disney Company before/after the merger of these two…show more content…
Disney’s relationship with Pixar dates to Pixar’s inception in 1986 when both of them developed a technology that resulted in the Computer Assisted Production System (“CAPS”), a production system owned and used by Disney in some of its 2D animated feature films like The Rescuers Down Under, The Lion King and Tarzan. In May 1991, they entered into a feature film agreement, under which Toy Story was developed, produced and distributed. In 1997, they entered into the Co-Production Agreement under which Pixar was responsible for the development, pre-production and production of each Picture, while Disney was responsible for the marketing, promotion, publicity, advertising and distribution of each Picture, and the profits shared equally between Pixar and Disney after Disney recovers a distribution fee and pre-agreed distribution costs. A Bug’s Life, Monsters, Inc., Finding Nemo, Toy Story 2 and The Incredibles were produced under this

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