Change and mergers_acquisitions
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Transcript of Change and mergers_acquisitions
Change and Mergers Acquisitions
Linda Leimane, Renāte Gasiņa
November 10, 2013
Introduction
• A business change - a process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets• A takeover/acquisition - a situation in which
a company gets control of another company by buying enough of its shares• A merger - an occasion when two or more companies join together• A joint venture -a business or business activity that two or
more people or companies work on together:
Acquisition of Pixar by Disney
The Walt Disney Company
• October 16th, 1923 by brothers Walt and Roy Disney• One of the largest media and entertainment media corporations• Owner of 11 theme parks, several television networks• Started making films 1930• Adaptions of children’s fairytales
The pixar• 1979 founded as Graphics Group• 1986 established as independent company- PIXAR• Emeryville, California, United States• Founders- Ed Catmull, Alvy Ray Smith, Steve Jobs• Computer animation film studio for over 25 years
Reasons for takeover
• Ownership of world’s famoust animation studio and its talent• Own’s animation movies were
failing• Steve Jobs (the deal brought technology
company Apple closer to Disney)
• Decrease in competition
• Good move to face competitiors (Dream Works & 21th century)• The deal gave Apple iTunes more
video content to offer• Can focus on it’s work• As part of the deal to ensure
that Pixar remained a separate entity
Takeover
• Walt Disney buys Pixar• Date: Jan. 23, 2006• Deal worth $7.4 billion (acquisition price calculated using “net present value” across its
businesses)
• Strict contract rules
Advantages
•Can collaborate without the barriers that come from two different companies with two different sets of shareholders
•Can focus on what is most important
• The addition of Pixar significantly enhances Disney animation
•Benefit in theme parks, consumer products and cable • There will be a steering committee that will oversee
animation for both Disney and Pixar studios, with a mission to maintain and spread the Pixar culture.
For employees and for products or services • Studio would remain in its
current Emeryville, California location with the Pixar sign
• Better quality• Bigger demand• More consumers
For customers For shareholders• Expansion – new studios,
expansion on TV• Exhibitons• Better quality• Upper prices
• Pixar's primary directors and creative executives must also join the combined company• Pixar HR policies will remain
intact, including the lack of employment contracts• If Pixar pulls ot of the deal, they
must pay Disney penalty US 210 million dollars
Disadvantages
• High-price deals may also disappoint investors in the long term• produces morally questionable products
Why are staff resisting the change?
• The difficulty of uniting two different cultures• The risk of being fired for some staff• members
What possible mistakes might new management make?
• Failing to Define Goals• Lack of Feedback• Being to friendly
What practical actions can be taken to improve the situation?
• Learn how to provide regular feedback• Set smart goals• Make sure everyone knows their role on the team
What can be learned from this experience?• We can learn that there are always
pros and cons in marketing.• How works film companies and what is
plus and minuses for them.
Sources
• http://dealbook.nytimes.com/2013/08/05/disney-magic-may-not-have-worked-on-pixar/?_r=0• http://
www.complex.com/tech/2013/01/the-15-most-important-tech-acquisitions-of-all-time/disney-buys-pixar• http://disney.wikia.com/wiki/Pixar
Thank you for your attention!
Questions?