World's Second Largest Broadcasting And Cable

Company In Terms Of Revenue US$ 45.041 Billion

(2013)Founded On October 16, 1923

By Walt Disney And Roy O. Disney

An American Diversified Multinational Mass Media Corporation Headquartered

In California

Some historical clues…1923: launches the Disney Brothers Studio 1940: Walt Disney goes public1954: Expansion into television1955: Theme park Disneyland1976: First major international expansion, Tokyo Disneyland announced in 19761987: The first Disney Store opens, in Glendale, California1988: High investment in animation technology1995: Disney bought ABC, second biggest acquisition in US history at the time1996: Disney Online launches Disney.com2000: Disney begins its Gold Classic Collection DVD line.2006: Disney Cinemagic launched on in United Kingdom.2014: Frozen wins the Academy Award for Best Animated Feature at the 86th Academy Awards, becoming the first win in the category for Walt Disney Animation Studios.

“If You Can Dream It You Can Do It!”

- Walt Disney

Walt Disney Diversified

Media Networks Park and Resorts• ESPN• Disney/ABC Television Group• ABC Entertainment Group• ABC News• ABC Owned Television Stations

Group• ABC Family• Disney Channels Worldwide• Hyperion Book s

• Disney Land Resorts• Walt Disney World Resort• Tokyo Disney Resort• Disneyland Paris• Hong Kong Disneyland• Disney Cruise Line• Disney Vacation Club• Adventures by Disney• Walt Disney Imagineering

“All Our Dreams Can Come True, If We Have The Courage To Pursue Them.” - Walt Disney

Walt Disney Diversified

The Walt-Disney Studios Disney Consumer Products• Walt-Disney Studios Motion

Pictures• Marvel Studios• Touchstone Pictures• Disneynature• Walt Disney Animation Studios• Pixar Animation Studios• Disney Music Groups• Disney Theatrical Group

• Disney Licensing • Disney Publishing Worldwide• Disney Store

Disney Interactive Media Group

• Disney Online• Disney Games

“It's Kind Of Fun To Do The Impossible.”  - Walt Disney

DISNEY - CONTRIBUTION OF SEGMENTS TO REVENUES

Media Networks 45%Parks & Resorts 31%Studio Entertainment 13%Consumer Products 8%Interactive 3%

“The Difference In Winning & Losing Is Most Often, Not Quitting.”  - Walt Disney

Vertical Integration

Horizontal Integration

Forward Backward

Integration Strategies

“Happiness Is A State Of Mind. It's Just According To The Way You Look At Things.” - Walt Disney

FORWARD INTEGRATION• Buena Vista Distribution

• Buy back of food and merchandising operations within Theme Parks

• Launch of the Disney Channel in 1983

• Disney Stores, “retail as entertainment concept”

• New distribution channels : Direct-mail & Catalog marketing

• Buena Vista Home Video • Using the internet as a distribution channel

BACKWARD INTEGRATION

• Walt Disney Music Company formed to control Disney’s music copyrights

• In house travel company to work with travel agencies, airline and tours in order to bring customers

• ABC focused on using content developed in-house

HORIZONTAL INTEGRATION

• Acquisition of CapCities /ABC, to own a programming distribution channel

• ESPN Zones• Disney Quests• Cruise Ships• Educational Retreats

MERGER & ACQUISITONS

• January 24, 2006 agreed to buy Pixar for approximately $7.4 billion in an all-stock deal

• Steve Jobs owned 50.1% shares in Pixar

• Steve became Disney's largest individual shareholder with 7% with and a new seat on B.O.D

• Pixar shareholders received 2.3 Disney Shares / Pixar common stock redeemed

• Disney acquired 100% shares of Pixar and made it a wholly-owned subsidiary

• In 2009, Walt Disney Company acquired MARVEL for

$4.64bln

• MARVEL shareholders received,

– 0.745 Disney shares/ MARVEL share

• Disney paid $4.2 bln in cash with distributed shares valued at $1.9 bln“No Matter How Your Heart Is Grieving, If You Keep On Believing, The Dreams That You Wish Will Come True.”  - Walt Disney

• Disney Didn’t Have 3D animation Capabilities of PIXAR

• PIXAR’s Patented 3D Technologies were superior

• Acquisition added to Disney’s 3D animation competencies (Horizontal)

• Curtailing the Competition and value addition to Disney portfolio

Why Disney Bought PIXAR?

Why Disney Bought MARVEL

• Failure in capturing Young Male Markets with existing Shows/Characters

• Acquisition of MARVEL allows to cater that segment (Horizontal )

• Disney (Girls) + MARVEL (Boys) = Synergy

• More content opportunities for it’s abc Channel• AGENTS of S.H.I.E.L.D

• AGENT CARTER

• MARVEL Characters in Disneyland

• Disney : Comic Books +Movies+TV Shows

• MARVEL :Comic Books

• MARVEL (Supplier) Disneyfor Movies/TV Shows (Vertical )

• Acquisition of MARVEL’s Intellectual Properties (Vertical)

Why Disney Bought MARVEL ?

CO-OPERATIVE STRATEGY Licensing agreements with :

• M-GO, digital movies and TV streaming (2013)• Russian state broadcaster Channel One (2007)

• Toggle multi-year (SVOD) (2014)

• EA Games multi-year licensing agreement for Star Wars games (2006)

Franchise agreement with :

• Delhi-based RJ Corp for some 150

'Disney Artist' brand stores across India

“Its Fun To Do The Unexpected.”  - Walt Disney

CO-OPERATIVE STRATEGYJoint ventures :• A Disney & BesTV Agree to Form Digital Joint Venture in China

• IndiaCast and Disney• A Disney joins Fox and NBC as J.V partner of Hulu

When You're Curious, You Find Lots Of Interesting Things To Do.”  - Walt Disney

INTERNATIONALIZATION• Tokyo Disneyland (1983)

• Disneyland Paris (1992)

• Hong Kong Disneyland (2005)

• A Shanghai Disneyland (end of 2015)

• The Walt Disney Company India (1993)

http://io9.com/5349561/disneymarvel-what-does-disney-actually-get

http://screenrant.com/disney-marvel-deal-2-pauly-23687/2/

http://www.law.illinois.edu/bljournal/post/2009/09/20/Marvel-and-Disney-A-Merger-with-Character.aspx

http://dizbizblog.wordpress.com/

References