Disney and Pixar The acquisition of Pixar by Disney in 2006 is an example of vertical merger, which is best described as a merger that occurs between two firms that work at separate and distinct stages of the production process. By merging operations, the two firms become one and their oversight of the production process is made that much more complete. Prior to the merger, Pixar produced films and Disney released them, marketed them, and so on. After the merger, the entire process would be overseen by Disney with Pixar leaders still playing a fundamental role in the creative development phases of production (Jain, 2013). As Debruge (2016) notes, however, the merger was more of a bailout for Disney, whose animated studio had floundered ever since Pixar’s hit Toy Story took animation and audiences in a whole new direction. Disney thus wanted to keep the firms separate while retaining ownership of Pixar because it did not want it...

This may be one reason many fans have disliked the new Disney-produced Star Wars films and why many fans of Toy Story still enjoy the Pixar films that are produced under Disney. Pixar has retained creative control.
The only drawback, if there could be said to be one, is that once the brain trust goes at Pixar, Disney will be left to run Pixar on its own and it will be the same old sad story of Disney having no talent to produce creative films anymore—which has been made all too clear with its Lucas Films adventure.

References

Debruge, P.…