Abstract

In January 2006, the US based media and entertainment company Walt Disney announced that it would acquire its animation partner Pixar for US$ 7.4 billion in stock. The deal was expected to be finalized by mid-2006. Disney and Pixar were already under an agreement to produce six animation movies. However, this partnership later faced problems and Pixar started looking out for other partners in early 2004. The case primarily examines the partnership agreement between Disney and Pixar and puts forth the incidents that led Pixar to look out for other partners. It describes how the new CEO Robert Iger, who succeeded Michael Eisner, went on to re-establish ties with Pixar and Steve Jobs, who held 50.6% equity stake in Pixar. The case highlights the advantages and pitfalls of the deal for Disney and Pixar.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study and analyze the advantages and drawbacks of the partnership agreement between Disney and Pixar for producing and distributing animation films
• Examine the reasons why partnership agreements fail
• Understand the rationale behind Disney’s acquisition of Pixar.

Keywords

Walt Disney, Pixar, Acquisition, Partnership, Animation Content, Content Development, Go.com, Toy Story, The Incredibles, Finding Nemo, Technological Innovation, Digital Content Delivery