In 2006, The Walt Disney Company agreed to a $7.4 billion deal to take ownership of Pixar Animation Studios, the firm
responsible for movies such as Toy Story, Finding Nemo, Cars, Monsters Inc, and Planes. Disney said that high demand for
Pixar's movie merchandise (such as Buzz Lightyear toys and DVD movie sales) had earned Disney over $3.2 billion. The real
value to Disney, however, is the synergy that would be created from the integration of the two firms. In 2010, Toy Story 3
became the highest-grossing animated movie of all time, earning over $1 billion at the box office. As part of its growth
strategy, Disney acquired Lucasfilm in 2012, and scheduled production of a third trilogy of Star Wars, with Episode VIl
released in December 2015, and Episode IX in December 2019.
(a) In the context of the case study, define the term integration.
[2 marks]
(b) Examine two potential problems for businesses during an acquisition.
[6 marks]
(c) Discuss the decision of The Walt Disney Company