Question

As a board member of Pixar, would you accept the bid from Disney? What are Pixar’s alternatives to the acquisition?

Answer 1

For Pixar the bid of more than $7 billion is fair. As a board member of Pixar, I will accept the deal of more than $7 billion from Disney. The reason is that the distribution channel of Disney is higher. Disney has a strong position in the market and their profits are more than the Pixar. Pixar had lots of potential buyers because of their production of blockbuster hits. Apart from the Disney Pixar had other acquisition such as Sony, Fox, Warner Bros., Time Warner, and AOL. Buying Pixar was a good deal for Disney as it can produce long-term value for its investors remain competitive in the industry.