The Ride of a Lifetime - Chapter 9

CHAPTER 9: DISNEY-PIXAR AND A NEW PATH TO THE FUTURE

This Chapter begins by Bob Iger confessing that he was seriously thinking about acquiring Pixar. However, there was a massive issue that needed to be addressed. As Iger states: “Steve [Jobs] loved Pixar and he didn’t care about Disney, so any agreement he’d consider would have huge upsides for them and come at a steep price for us.” 

The thoughts to acquire Pixar started when, at some point, Disney figured out that they were far behind Pixar in terms of brand loyalty. “Among women with children under twelve, Pixar had eclipsed Disney as a brand mothers thought of as ‘good for their family.’ In a head-to-head comparison, Pixar was far more beloved—it wasn’t even close.”

The next paragraph is best described through Iger’s words: “PEOPLE SOMETIMES SHY AWAY from taking big swings because they assess the odds and build a case against trying something before they even take the first step. One of the things I’ve always instinctively felt—and something that was greatly reinforced working for people like Roone and Michael—is that long shots aren’t usually as long as they seem. Roone and Michael both believed in their own power and in the ability of their organizations to make things happen—that with enough energy and thoughtfulness and commitment, even the boldest ideas could be executed. I tried to adopt that mindset in my ensuing conversations with Steve.” 

After positive conversations with Steve Jobs, Iger spent a day visiting Pixar and he was astounded. He was inspired and fascinated by the degree of talent and “creative ambition, the commitment to quality, the storytelling ingenuity, the technology, the leadership structure, and the air of enthusiastic collaboration—even the building, the architecture itself.”

As Iger continued to assert: “Nothing is a sure thing, but you need at the very least to be willing to take big risks. You can’t have big wins without them.” The CEO genuinely felt that Disney acquiring Pixar would revolutionise them and specifically, Disney Animation. Additionally, the acquisition would bring in Steve Jobs to the Disney board and thus, Disney could also adopt a culture of excellence and ambition. Disney ended up acquiring Pixar for $7.4 billion.