What Would You Do? Case Assignment
Walt Disney Company
Burbank, California
Over two decades, your predecessor and boss, CEO Michael Eisner, accomplished much, starting the Disney
Channel, the Disney Stores, and Disneyland Paris, and acquiring ABC television, Starwave Web services (from
Microsoft cofounder Paul Allan), and Infoseek (an early Web search engine). But his strong personality and
critical management style created conflict with shareholders, creative partners, and board members, including
Roy Disney, nephew of founder Walt Disney.
One of your first moves as Disney’s new CEO was repairing relationships with Pixar Studios and its then CEO
Steve Jobs. Pixar produced computer-animated movies for Disney to distribute and market. Disney also had the
right to produce sequels to Pixar Films, such as Toy Story, without Pixar’s involvement. Jobs argued, however,
that Pixar should have total financial and creative control over its films. When Disney CEO Michael Eisner
disagreed, relations broke down, with Pixar seeking other partners. On becoming CEO, you approached Jobs
about Disney buying Pixar for $7 billion. More important than the price, however, was promising Jobs and Pixar’s
leadership, President Ed Catmull and creative guru John Lasseter, total creative control of Pixar’s films and
Disney’s storied but struggling animation unit. Said Jobs, “I wasn’t sure I could get Ed and John to come to
Disney unless they had that control.”
Although Pixar and Disney animation thrived under the new arrangement, Disney still had a number of critical
strategic problems to address. Disney was “too old” and suffering from brand fatigue as its classic but aging
