Disney's Acquisition of Pixar

The timing was also perfect as its own animation films had failed one after another. Its first full computer animation film Chicken Little (released in November 2005) fared only marginally well. 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 offered through Apple. Analysts said that having Jobs on the Disney board would certainly give the company the necessary technology edge and direction. Further, with Lasseter, the creative genius behind Pixar's block busters, in charge of the new division, Disney would get the necessary push in creativity which it seemed to lack in recent times.

While there were several possible synergies that could arise from the acquisition, there were also some potential trouble spots for Disney. The rise of Jobs to the Disney board as the single largest shareholder could become a major worry for Iger as Jobs was slightly unpredictable. The merger, in place of the partnership with Pixar, might make Iger second to the powerful and experienced Jobs. An industry analyst termed the move bold but predicted that Iger might leave Disney in a year, saying, "Iger just put a gun to his head." Analysts felt Iger had to be careful as he was still trying to create his own identity after being under the shadow of Eisner, who had been at the helm for more than twenty years...