How the Walt Disney Company used acquisitions to grow the business…

In January 2006 (and just three months into his tenure, Disney CEO Robert Iger announced that the company would buy Pixar from Steve Jobs, former CEO of Apple, for $7.4 billion. This would be the first example of horizontal integration as Disney was now gaining the ability to produce 3D animation (a capability that it did not previously possess). Previously, Disney played the distributor role with Pixar’s films. Disney had a lot of success with it’s distribution deal with Pixar as evidenced in the image below. These films brought in a total gross revenue of over $3.2 billion dollars worldwide according to CNN Money. It also made Jobs “nonindependent director at Disney as well as its largest individual shareholder.” When the deal was complete, Iger was quoted saying “The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses.”

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This image demonstrates the revenue that Pixar was able to bring in off its animated film releases.

For more information on mergers and acquisitions (especially with Disney and Pixar), view this Prezi by Delano Muthra: