The partnership between Pixar and Disney has deep roots, going way back to 1991. The first result was 1995’s "Toy Story," which revolutionized the world of computer animation. Ever since, Pixar films have been distributed by the Walt Disney Company, proudly displaying both the Pixar logo "Luxo Jr." and the Disney castle. Disney recently acquired Pixar Studios at a price of over $7.4 billion. The terms include giving Jobs an estimated 7% stake in Disney and letting Pixar's top creative executive, John Lasseter, have a key role in advising Disney in creative matters. Which party had more power? Disney or Pixar?
Pixar definitely had more bargaining power while the deal was being negotiated. Though many feel that Disney has paid a premium price for the acquisition, the reality is that Disney does stand to gain in the long run considering the ground realities during the time the deal was struck. For Disney, the acquisition of Pixar seems to represent a strategic "must" for the company. Some would say that they had no choice.
Pixar created dependence for Disney, by accentuating all its strengths and thus had the power in negotiating. Pixar understood the range of approaches available and used the most effective ones to negotiate with Disney.
·Pixar’s extraordinary talent pool – It was an acknowledged fact that Pixar had the best talent pool in the animation business especially one person who was considered the “Guru” of the Industry, John Lassiter. The creative talent at Pixar offers great potential in amplification of Disney’s product offerings in the animation arena. The animation unit at Disney now, after the deal, will unquestionably be stronger with the full-time addition of Pixar's resident genius, John Lassiter.
·Best technology - Robert Iger, of Disney, wanted to adopt new technology of accelerated delivery of entertainment over the Web and through wireless means. Pixar had all the technology and with Jobs playing a key role...