Consolidation and Convergence The definitions that would describe merging of two companies are an example of two words; consolidation and convergence. The definitions of the word consolidation means “the process of uniting: the quality or state of being united: specifically: the unification of two or more corporations by dissolution of existing ones and creation of a single new corporation” (2016, Merriam, Webster) the word convergence meaning “the merging of distinct technologies, industries, or devices into a unified whole.”(2016, Merriam, Webster) A merger happens when two companies are combined and the resulting company takes the form of the company has bought the other company. Many people will ask why one company buys another company. …show more content…
Disney in 1923. Disney Brothers Cartoon Studio established itself as a leader in the American animation industry before diversifying into live-action film production, television, and theme parks. Through the years of the making of its first silent in 1928 and with the advance technology of sound came additional films and the eventual with the opening of the first theme park Disneyland in July 1955. In 1984, then CEO Ron Miller created Touchstone Films as a brand for Disney to release major motion pictures and expand to even to bigger and broader audience. The Disney Company would grew with the launch of the Disney …show more content…
This was only the beginning of the many acquiring and selling shares to both other induvial share holder. When Disney announced that they would be acquiring the its longtime partner Pixar Animation Studios Inc. for $7.4 billion (U.S.) in a deal that could restore Disney’s clout in animation while vaulting Pixar CEO Steve Jobs into a powerful role at the media conglomerate by obtaining 7% ownership of Disney and Pixar as 50.1% shareholder. Along with the shares that Steve Jobs had received he also joined Disney’s board. Due to the multiple large acquisitions that Disney would create this would classify them as both horizontal and vertical integration aspects to their business. Horizontal, since they have “amusement parks” they create other amusement parks or amusement places but they were also, able to an vertical integration which is about gaining more control over the supplies or over the distribution of the product or services, this happened when Disney first purchased of Pixar. The Walt Disney Company has become the 2nd largest media conglomerates in the world. It has revenues topping $42 billion and profits of over $5.5 million. There are a total of 1,899 institutional holders and
Through numerous innovations, acquisitions, and other strategic moves The Walt Disney Company has grown tremendously from the animation company that
It is proper to present a business definition of merger as it found on legal reference with the ultimate goal in the pursuing of an explanation on which this paper intents to present. A merger in accordance with the textbook is legally defined as a contractual and statuary process in which the (surviving corporation) acquires all the assets and liabilities of another corporation (the merged corporation). The definition go even farther to involve and clarify about what happen to shares by explaining the following; “the shareholders of the merged corporation either are paid for their share or receive the shares of the surviving corporation”. But in simple terms is my attempt to define as the product or birth of a corporation on which typically extends its operation by combining with another corporation. So from two on existence corporations in the process it gets absorbed into becomes one entity. The legal definition also implied more than meet the eye. The terms contractual and statuary, it implied a process on which contracts and statuary measures emerge as measures to regulate, standardized, governing or simply at times may complicate whole process. These terms provide an explicit umbrella and it becomes as part of the agreement formulating or promoting a case for contracts to be precedent, enforced or regulated in a now or in the future under a court of law under the Contract Business Law Statue of Practice. As for what happens to the shares of the involved corporations no more explanation is needed as the already actions mentioned clearly stated of the expectations of a merge’s share involvement.
The most important part of Disney’s long-term success is due to its key strategic choices and incorporation of various diversification strategies. Disney created value mainly through “vertical integration” of its business lines, especially through the concept of forward integration. For example, Disney integrated production of movies and the final distribution in cinema’s or on television, especially through its acquisition of ABC in 1995 (1, p.6/7). Through this acquisition, Disney was able to extent its boundaries quickly and gain access to a wider lev...
This case provides a brief history of management conflict and change at Walt Disney Company. Former CEO Michael Eisner was considered to be controversial because of his abrasive style and tendencies toward micromanagement. It was this style that strained several important relationships to the Disney Company. Though his reign as CEO during the 80’s and 90’s helped advance Disney Company, it was his conflicting management style that led to his demise and the beginning of Robert Iger’s epoch at Disney. Since Iger has taken the helm as CEO Disney was ranked 67th in the Fortune 500 list for largest companies, it has become the largest media conglomerate in the world, and relationships and disputes stemming from Eisner have been reconciled.
One of the key factors of the successful diversification is the very strong branding of the name Disney. That the name was famous after the success in the early years made it among other things possible to go into the theme park industry. Evaluated isolated, the theme parks was a success. But when also accounting for the synergies created, the decision to go into this industry was a huge success. It has created a spiral of synergies, where the characters in the movies get more popular due to the parks, as well as the fact that when people are visiting the parks they get stimulated to buy the merchandise. This is just one example of the synergies that exist in Disney. When Michael Eisner took over control in Disney, he kept focusing on same corporate values as earlier, which are quality, creativity, entrepreneurialism and teamwork. These values have been preserved despite of the size of Disney, and are an important factor in sustaining and building the Disney brand.
The first theme park opening in 1955 was Disneyland in California. After one full year of construction demands and a total investment of $17 million the Six thousands invitations to the grand opening had been mailed inviting people to experience the magic Disney had created but when the gates opened the Disneyland was far from magical. Workmen were still planting trees, the paint was still wet and the asphalt wasn’t set. The food stalls and restaurants ran out of food due to the high number of people because of counterfeit tickets being sold. Walt Disney didn’t know didn’t know what was going on because his attention was on the live broadcast. The rides broke down shortly after use. When Walt Disney World opened in 1971 the
Companies merge and acquire other companies for a lot of strategic reasons with different degrees of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on an organization can be small and big in other cases. Mergers and acquisitions immediately impact organizations with changes in rights, and ideas and eventually, in practice. There are multiple reasons, some are motives and financial forces just to name a few.
The entertainment industry holds the immense potential for growth and development. The industry is constantly evolving and Walt Disney emerge as a global leader and recognized as the world’s second largest media conglomerate in the terms of revenue after Comcast. The Walt Disney Company is a multinational entertainment conglomerate headquartered at California, United States. The company integrated its products into five target segments are as follows: (1) Media Networks (2) Parks and Resorts (3) Walt Disney Studios (4) Disney Consumer Products (5) Disney Interactive. The company has strong diversified product portfolios and generate high returns and revenues from all the target segments but the media networks contributes
The Walt Disney Company is the largest entertainment company in the world in terms of revenue. It was founded on October 16, 1923 by Walt Disney and his brother, Roy O. Disney. They started the company, The Disney Brothers Cartoon Studio, where they became the leader in the American animation industry and later working in live action film production, television and their world famous theme parks. Through different acquisitions, they have diversified and now do business in theater, radio, publishing, online media, music and own several television channels (Disney History Institute).
However, the largest segment of Disney’s operation is Media Networks (Iger, 2014). Disney first access to television and cable networks was on July 31, 1995 with the purchase of Capital Cities and ABC Family. Other than that, the films Cars, Finding Nemo and The Incredibles was the products that Disney cooperate with Pixar, thus Disney bought Pixar Company in 2006. After three years, Disney had purchased Marvel Entertainment and it help Disney access to several comic book characters, for example X-Men, Thor, Spider-Man as well as Captain American. On October 2012, The Walt Disney Company yet gain Lucasfilm, which is a company that are well-known and high hits for the blockbuster movie such as Indiana Jones and Star Wars (Carillo, Crumley, Thieringer & Harrison,
According to Florida Incorporation, a merger is the statutory combination of two or more corporations in which one of the corporations survives and the other corporations cease to exist. An acquisition is obtaining control of another corporation by purchasing all or a majority of its outstanding shares, or by purchasing its assets (Florida Incorporation, 2006).
The Walt Disney Company, or more commonly known as Disney, is an American corporation headquartered in the Walt Disney Studios, Burbank, California. Disney (DIS) is the largest operator of theme parks and resorts and largest media conglomerate, reported total revenue of $11.58 billion, a 4% raise from the previous year in its third-quarter results. Most of its revenue is generated from the media network segment and the park and resort segment. Disney's strategies mainly focus on generating the best creative content possible along with innovation and utilizing the latest technology. (Seekingalpha.com, 2014)
The company that I choose to explore is The Walt Disney Company. Walt Disney started the Disney Brothers studio in 1926, after years of working as a cartoonist. I selected this company due to the fact I am a fan of their products and services. Disney produced some of my favorite films like Aladdin, Hook and The Lion King. After I visited their website, I discovered that Disney owns multiple media outlets, in such areas as film, Internet, music, broadcasting, publishing and recreation. According to Disney’s “The mission of The Walt Disney Company is to be the one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, service and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world”. The Disney brand is doing exactly what their mission states.
The market segmentation of Walt Disney is divided into five main segments as follows: media networks, theme parks and resorts, Walt Disney studios, Disney consumer products and Disney interactive (Carillo, Crumley, Thieringer, & Harrison, 2012). As Carillo et al. (2012) continues to explain, media networks encompasses cable, broadcast television and radio networks, aside from digital operations. ABC, ESPN, and the Disney channel are some of the constituents of media networks. Theme parks and resorts, as Russell (N.d) states, include the operation of the Disney World Resort, the Disneyland hotel, the Disneyland Park, the Hong Kong Disney resort, and the Disneyland Pacific
Mergers mean two or more companies combining together to form one business or firm. There are six different types of mergers: Horizontal, Vertical, Conglomerate, Market extension, Product Extension and Diversified activity.