The Disney's world gets along with Pixar

Moving a step ahead in giving its rival run for their money WALT Disney has acquired Pixar the animated film studio in a $ 7.5 billion deal. This coalition can be ascribed with Disney's intentions to strengthen its foothold in the field of animation-being its vital most concern.

The all-stock merger will give Pixar shareholders 2.3 shares of Disney for each share they presently own in Pixar.Though Pixar shareholders have to approve the deal but as Pixar Chairman and CEO Steve Jobs Pixar's founder, has already agreed to vote 40% of the company's outstanding shares in favor of the deal it can be considered as a mere formality.

As part of the agreement, which is expected to be finalized in the next few months Jobs, will take a seat on Disney’s board and become the company’s biggest shareholder along with company’ Ed Catmull and John Lasseter acquiring other zenith positions.

The merger has been greeted with enthusiasm by Wall Street and aims at bringing Disney some major steps forward for achieving the goal set out by Robert Iger ,chief executive of restoring Disney as pre-eminent Hollywood animation studio.

"The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our business," Mr Iger said.

As per the analysts Pixars’ technical caliber will bolster Disney at a time when it and other media companies are attempting to sell their content on a variety of emerging digital platforms, including iPods, mobile phones and other devices. Also acting as a boon for the future of both the sides.

Meanwhile Disney’s shares continued a recent rally, closing Tuesday’s trading day in New York up 47 cents, or 1.8 per cent at $US25.99. Pixar was down 70 cents at $US57.57, giving it a market capitalisation just shy of $US6.9 billion.