DISNEY BUY PIXAR | Pros | Cons | Disney have the brand and distribution | External factors, such as increasing competition or a declining industry, can affect future growth | Pixar have the technology and creative part | The seller’s personality and their established relationships may be a major factor for the success of the business | Buying an established business means immediate cash flow | Influenced by Apple | The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors | Culture between Disney & Pixar | Acquisition of existing customer, contacts, goodwill, suppliers, staff, plant, equipment and stock | Financial stock Dilution | The market for the product (animated movies) is already established | | Existing employees and managers will have experience they can share | | Skipping the start-up stage | | Inheriting systems, customers and image | | Disney consolidate its dominant position in the market | | Pixar improve the capacity of profitability and then create more value | | Revitalize Disney’s animation department, eliminate competition, access to technology & human capital | | | |

1. Buy
When assessing if Disney should buy Pixar is necessary to evaluate the pros and cons of the action. Considering the cons, firstly is necessary to understand that there are some external factors such as, increasing competition or the decline of the industry that can affect future growth and therefore the profitability of the market. It’s necessary also to evaluate the current relationship that exists between the two companies, because this may be a major factor for the success of the business. We also verify that the culture of the two companies is quite different and this can also be a negative factor for the acquisition. Pixar culture is