Walt Disney Productions Case Study

753 Words 4 Pages
Walt Disney Productions, is a diversified worldwide entertainment conglomerate that located at Burbank, California. The Walt Disney Productions is also commonly known as Disney. Disney was founded on October 1923 by Walt Disney and his brother, Roy O. Disney. At that time, the company was only work under the animation industry and the company name for this two brothers was Disney Brothers Cartoon Studio. Thereafter, they diversified their business into theme parks, live-action film production and television. The company also changed the name from Disney Brothers Cartoon Studio to The Walt Disney Studio and then Walt Disney Productions. In 1984, the attempted takeover of Walt Disney Productions by Saul Steinberg was due to large part to Disney’s …show more content…
Disney has diversified their businesses into four different business segments: parks and resorts, studio entertainment, consumer products and real estate development. Disney has grown from a small producer of animation series to a large media and entertainment conglomerate in the world. Through the different segments, the company can operated in many different economies and are generating income by using different business model. Walt Disney Productions can take the advantage of diverse operations to have a better competitive advantage and cause less affected by the changes in external environment than its competitors. Besides, Walt Disney Productions has a strong brand reputation. The Disney brand has been widely recognized worldwide and regularly listed as one of the best global brands of all time. Many look up to Disney for its good values and ethics through its Disney Channel, Disney Park resorts, movies from Walt Disney studios and its other family-friendly business …show more content…
Saul Steinberg, a corporate raider who think the Disney’s stock was significantly undervalue and decided to attempt takeover of Disney. After Steinberg do an investment analysis on Disney, they found that the liquidation value was approximately $ 100 per share. Steinberg was started to purchase Disney’s stock through a leveraged buyout. A leveraged buyout is the purchase of a company through the use of debt, typically through the issuance of junk bonds. Besides issuance of junk bonds, Steinberg also set up an acquisitions company with the stockholders of Reliance, Fisher Brothers Financail and Development Company and Tracinda Corporation, controlled by Krik Kerkorian to takeover Walt Disney Productions. Steinberg was successfully acquired 12.1% of Disney share after all this

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