I want to return Disney to greatness in this area, and this was the way to do it fastest. fastest. Yet the acquisition of Pixar has also revitalized Disney s other animation divisio ns. Their non-Pixar animated films are getting stronger, and it starts with Tangled,' Tangled,' have fit into its broader corporate strategy enabling the sale of toys and games . That same line of reasoning motivates the revitalization of these other division s, which permit Disney to release multiple blockbuster animated films in any giv en year boosting corporate earnings throughout the year. Perhaps it its not that Pixar has lost anything. Other companies have begun to catch up including those within the Disney empire. "Disney and Pixar can now collaborate without the barriers that come from two di fferent companies with two different sets of shareholders, As part of the deal, Jobs will become a board member of Disney, the companies sa id. And John Lasseter, the highly respected creative director at Pixar who had p reviously worked for Disney, will rejoin the House of Mouse as chief creative of ficer for the company's combined animated studios "The addition of Pixar significantly enhances Disney animation, which is a criti cal creative engine for driving growth across our businesses, According to the terms of the deal, Disney (Research) will issue 2.3 shares for each Pixar share. The question isn't did Disney pay too much but how expensive would it have been for Disney if Pixar fell into someone else's hands," He said that Pixar's "success quotient" justified the price of the deal. "Robert Iger has made no secret of the fact that he wanted to get the animated b usiness back to where it was. It's what Disney has known for but the movies they did in-house did not do as well as the ones they did with Pixar," Cuggino said the addition of Jobs, who will also become Disney's largest individ ual shareholder, to Disney's board could mean that more innovative digital deals could be in the works. acquisition of Pixar could help Disney increase revenue throughout all of its bu siness lines. So even though some may be quibbling in the short-term about how m uch Disney had to spend, he thinks Disney made the right move. The deal would bring the technology company Apple (through Steve Jobs) closer to Disney, and Iger could further increase the digital content that was being offe red through Apple. f Pixar's potential value to Disney's 'family entertainment' brand and assets, l ike theme parks and television, that feed off this brand." leveraging Pixar Pixar s computer-generated characters across its vast empire. You can accomplish a lot more as one company than you can as part of a joint vent ure, ure, Mr. Iger said in an interview. It makes a big difference when everyone is wor
king for the same set of shareholders. How Disney and Pixar are making the integration work holds lessons for other exe cutives faced with the delicate task of uniting two cultures. Tactics that have served the companies well include the obvious, like effectively communicating ch anges to employees. Other decisions, including drawing up an explicit map of wha t elements of Pixar would not change, have been more unusual. Mr. Iger also agreed to an explicit list of guidelines for protecting Pixar s crea tive culture. For instance, Pixar employees were able to keep their relatively p lentiful health benefits and werent forced to sign employment contracts. Mr. Iger even stipulated that the sign on Pixar s front gate would remain unchanged. But in the Pixar acquisition, Disney, despite its legendary corporate identity a nd strong will, held back. Pixar kept its e-mail system. Nobody was shipped to W alt Disney World in Florida to work a shift, part of the initiation that other e xecutives must endure. No switchboard operators at Pixar were asked to end telep hone calls with the words Have a magical day, as they do elsewhere in the company. If you are acquiring expertise, he said, then dispatch your newly purchased expert s into other parts of the company and let them stretch their muscles.