disney pixar merger case studydisney pixar merger case study
Most people think that you have to be rich and have lots of money to become an entrepenur, but many people start off with nothing at all, that was the case with Walt Disney. Prior to the Disney/Pixar merger, Disney Animation had been struggling to create new and innovative works. WebIn the beginning, Disney and Pixar worked together prior to the merger in 2006 on many projects such as Toy Story, in 1991. 1 Overview of Company WebThe Pros And Cons Of Disney And Pixar 713 Words | 3 Pages. In order to operate in any foreign environment, competition must be frequently analyzed. In most cases, the merger brings advantages such as lower cost of production, better management team, and increased market share but they can also cause job losses and bankruptcy. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). Leaders play a pivotal role in avoiding confusion and chaos and at the same time restructure the organization by establishing clear structures which are beneficial to the merger. It is one of the globals leading manufacturers and providers of entertainment. 2 Take the instance of the merger between Pixar Animation Studios and Walt Disney. Pixar mainly focuses on quality, and this is what makes Pixar different from other companies. Disney kingdom was started by a person named Walter Disney in association with his brother who called Ray O Disney in 1923. CASE STUDY ANALYSIS. WebIn the US$ 7.4 billion deal, Disney got a library of six Pixar films. >> It is constantly working to provide people with the most special entertainment experience, and has been adhering to the company 's good tradition of quality and innovation. << /Length 13 0 R /Filter /FlateDecode >> He started off with nothing, living out of his office and eating cold beans before he became the successful entrepeneur he is today. Prices dropped - now starting at just $8 per page! Their in-house creativity is the reason why they can create such innovative films. Toshiba is a Japanese electronics and engineering organization with its head office in Tokyo. The acquisition gave Disney access to Pixar's technology. The company had two choices: continue making old fashioned hand-drawn movies or make a new type of Disney movie using the digital animation that was now available due to modern technology. Oligopoly is a market structure whereby a few number of firms owns a lions share in the market. The merger between Disney and Pixar was the result of investors' belief that the combined company could use the animation character of Pixar to expand its network market. The Disney- Pixar merger again only solidified their ability to compete in the industry and continue to benefit the society. A cultural clash between the Walt Disney and Pixar was involved. After being an independent company for 20 years, Pixar was sold to Disney. Note: this Sign up for a free trial here . The merger of Walt Disney and Pixar was among the most successful corporate transactions in recent years. According to the agreement, Disney agreed to produce movies to be developed and directed by Pixar's John Lasseter. WebInvestment Alliance- The animation pictures will be invested by both Disney and Pixar. Shortform has the world's best summaries and analyses of books you should be reading. Upload unlimited documents and save them online. WebIn May 1991, Disney entered into an agreement with Pixar for developing and producing three computer animated feature films. endobj endstream J. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. Horizontal mergers are more common in industries with fewer firms, as the potential benefit of merging increases with the elimination of competition. One of the success factors behind successful mergers is the element of time. This provides an opportunity for innovation. It is also used to prepare new employees for the company's creative department. But some mergers that look right on paper often fail and As an attorney, Rina cant help analyzing and deconstructing arguments in any book she reads. We only work with verified PCI DSS-compliant platforms that ensure customers' confidentiality and absolute security of their data. OGWyw}2P'c[9Yx So these changes are very necessary, because they affect the employees behaviors. Ultimately, Jobs gave the decision to Catmull and Lasseter. These have been produced using Pixar technology. Other major factor which contributed to the success of the Disney Pixar merger is that of transformational leadership, creating organizational learning and devising learning teams, creating a culture of learning in the organization and creating a sense of shared strategic mission and vision. What are the advantages of Disney-Pixar merger? Since the acquisition, Disney-Pixar has plans to release movies twice a year as Pixar has the technology to help do so. Aside from technology, Pixar also has a culture that values creativity and innovation. Pixar pushed itself to invent its own unique animation techniques. Bob Iger. Disney decided to take on the new animation culture with the help of Pixar. Disney and Pixar merger was a vertical merger. Disney/Pixar.Disney. Some even doubted the suitability of Eisners management style since Disney had grown very big over the. Buy now, save instantly, get the job done on time! Despo Michaelidou - How was Ed Catmull able to apply his management strategies from Pixar to Disney Animation Studios? February 2020. The relationship began in the post-Cold War era when Disney produced films reflecting the Chinese way of life, like Kundun and Mulan (Hongmei). (Funamentals n.d.) The company has been running from 1923 till current and I have decided to take the first 43 years (1923 to 1966) in consideration because I wish to tell the reader how the company went from Good to Great under the supervision of Walt Elias Disney. Will you pass the quiz? Conclusion The merger between Disney and Pixar is one of the most famous mergers that have taken place in the entertainment industry. The objective of both firms needs to be fulfilled and the merger and acquisition advisory organization has the authority to control the results of the goals of the clients. Disney And Pixar Merger Case Study. They also featured their characters in theme parks. Free and expert-verified textbook solutions. Synergies seen in combining successful animation experts from Pixar and studio experts from Disney. Marvel released the movie Avengers and it was a great success. Pixar's successful acquisition with Disney has been incredibly profitable, with the company releasing over 10 full feature animated films globally, all of them reaching a total gross of over $360,000,000. At one point in time, no screen credit was allowed other than Walt's (Source E). The merger and acquisition is not only about two companies that sign an agreement and then start working in collaboration. Additionally, adaptions often need to be made in order to compete and to meet the needs and wants of consumers in the local culture. However, investors were worried that the acquisition would threaten the Disney movie culture. FV>2 u/_$\BCv< 5]s.,4&yUx~xw-bEDCHGKwFGEGME{EEKX,YFZ ={$vrK The Disney Pixar merger had a successful element of time which eventually benefitted both the firms. E6S2)212 "l+&Y4P%\%g|eTI (L 0_&l2E 9r9h xgIbifSb1+MxL0oE%YmhYh~S=zU&AYl/ $ZU m@O l^'lsk.+7o9V;?#I3eEKDd9i,UQ h6'~khu_ }9PIo= C#$n?z}[1 << /Length 5 0 R /Filter /FlateDecode >> Most mergers can be highly risky but with the presence of knowledge and intuition they can be successful. Disneys ability to change its focused demographics, create a substantial competitive advantage, manipulate the marketing mix to fit each franchise, and focus on specific strategic plans has allowed for Disney to become one of the top platforms in the world. Through the years, Disney and Pixar have been able to successfully combine forces and create a profitable business model. They needed to find a way to attract and retain a creative group of artists that would help them become a successful company. In 2015, when Walt Disney and Pixar started working together on the film Toy Story, it became the world's first computer-generated movie. The main purpose of the case is to learn by analysing real time examples and to apply the This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. WebThe Disney-Pixar Case Study Given our belief that Third Space skills map to creative industries, a good case study of how rms have used Third Space skills to manage these skills is the Walt Disney acquisition of Pixar in 2006 for $7.3 billion. The company manages through its five business segments which includes parks and resorts, media networks, studio entertainment, consumer products and interactive. Since Pixar had built a culture around their corporate culture, Pixar was worried that theirs would be ruined by Disney. He did not change the existing corporate values of creativity, quality, entrepreneurship and teamwork and started rebuilding the company along the same lines. Example Of The Disney Pixar Merger Case Study. (2011). Please place the order on the website to order your own originally done case solution. This article is an excerpt from the Shortform book guide to "Creativity, Inc." by Ed Catmull. Please answer the following question: What would the benefits be (from Disney's perspective) for Disney to. 4.0,` 3p H.Hi@A> Previous movies of Pixar were released by Disney but their contract was about to end prior to the release of a film by Pixar, Cars. While these films had some merits, they were nowhere nearly as universally beloved as their predecessors. Once the merger went through, Catmull immediately began his tenure as the president of both Disney Animation Studios and Pixar. It is causing a lot of controversies in the workplace, especially within the Disney Consumer Products division (DCP). The acquisition gave Walt Disney access to Pixar's technology, which was very important to them. Being partners for more than a decade, Disney and Pixar eventually merged, after a number of unsuccessful attempts. 5 0 obj Since it was founded in 1923, Walt Disney Company has become a world-famous entertainment and media company, and its turnover brings it to the second place among global media companies (after Time Warner). This has changed the world by creating more content for children to see, changed the world of animation from cartoons to full on motion pictures that can make people feel emotion, providing entertainment through Walt Disneys creations, his companys later creations, and creations made by companies that the Disney have bought. Title: 11521-DOI-Generic-ColoringSheet Created Date: 9/16/2014 2:25:25 PM, Disney/PixarDisney/Pixar Dettagli da Mostro: 3 Disney/Pixar LIBRETTO ATTIVIT MONSTERS & co CREA E CIOCA P[XAR EONSTERS co, Per te da shop PIXAR MONSTERS a co. LA CITT, 2016 Disney/Pixar PIXAR 02016 Disney/Pixar 2016 Disney/Pixar PIXAR 02016 Disney/Pixar 2016 Disney/Pixar O 2016 Disney/Pixar 77'5'5 9LOZO 2016 Disney/Pixar 9LOZO, DISNEYPIXARdisneypixar. Pixar believed that if you have a good team then you can turn a poor idea into a huge success generating idea. Management & Marketing: Challenges for the Knowledge Society, 6(2), 319 326. The possible reasons for the merger 1. endstream Back in 2006, a merger & acquisition agreement between two well-known companies set the basis for the continuation of the evolution in the animation industry. What factors led to Disney's decision to merge with Pixar? Purchasers for the producer business allude to film distributors, like, Disney. Due to the emergence of 3D-Computer graphic films, such as Finding Nemo (a Disney Pixar production), a competitive rise occurred in the computer graphics (CG) industry. It became the world's first computer-generated movie. This was Pixars first feature film and was co-produced with Disney. Pixar started its career as a computer-animated movie production company. Beyond the Disney Pixar case study, theres important context to know about how Disney Animation Studios was performing. Pixar was firm in the fact that they wanted to keep control over their stories, characters and associated film assets. A cultural clash between Walt Disney and Pixar took place. In this case, both firms would share knowledge and competencies from each other and would widely benefit from their own global networks. What were the benefits/risks and was it successful? << /Length 10 0 R /N 3 /Alternate /DeviceRGB /Filter /FlateDecode >> WebPixar wanted control and ownership over the movies it created along with entitlement to more revenues from its products. Your email address will not be published. This was part of a deal in which Pixar would produce 3 more films, and Disney would fund, market and distribute them. As a result, the critical reception of their films started to improve. The merger of Walt Disney and Pixar was among the most successful corporate transactions in recent years. The Investment Alliance, whereby Disney and Pixar have got into an alliance in which they will share profits from the movies. 1 Overview of Company The merger in fact helped both organizations to collaborate easily and freely by producing great movies like Up, Wall-E and Bolt. WebTaking Giant Swings: Pixar Acquisition Case Study. Mergers can cause bankruptcy, job losses, less choices, and even a breakup. WebThe official website for all things Disney: theme parks, resorts, movies, tv programs, characters, games, videos, music, shopping, and more! [ /ICCBased 9 0 R ] On the other hand, the merger with Disney helped Pixar as it led to a wide range of distribution network for the films released by Pixar post merger. Disney-Pixar Merger a case study analysis Match caseLimit results 1 per page Click here to load reader Post on 15-Jan-2016 63 views Category: Documents 2 download Report Download Facebook Twitter E-Mail LinkedIn Pinterest Tags: global models global integration forces global competitiveness hollands philips organisational structures Internal server error. The firm initially sold lamp sockets and has since grown to manufacture semiconductors and televisions. In fact, one of the first films under Catmull, Bolt, received an Oscar nomination. Why was the Disney Pixar merger a success? Being partners for more than a decade, Disney and Pixar eventually merged, after a number of unsuccessful attempts. Moreover, it would eradicate the difficulty of impending to contracts about creation and circulation cost. In 2005, Jobs told Catmull and Lasseter that he was considering selling Pixar to Disney. Mergers and Acquisitions In some circumstances the marketing decision is more political than economical. The Disneys objective is to be one of the world 's leading manufactures and companies of entertainment and information, by using its portfolio of brands to differentiate its content, services and consumer products. Yip and Hult (2012) define globalization as a business operating in all four hemispheres. He took all of the credit for all of their hard work. Because of the large amount of motion pictures accessible for distributors to pick from, the bargaining power of purchasers is huge for this industry. In some circumstances the marketing decision is more political than economical. By registering you get free access to our website and app (available on desktop AND mobile) which will help you to super-charge your learning process. In a vertical merger, two or more companies that produce the same finished products through different supply chain functions team-up. One of the biggest mergers to occur was between the Disney Corporation and the Pixar, Company. The merger of Also a transformational leadership can shape the future of both companies to stride towards the path of growth by creating learning and knowledge organizations. Moreover, there was a growing discontent in the company about Eisner and his way of management. Rina reads around 100 books every year, with a fairly even split between fiction and non-fiction. The company manages through its five business segments which includes parks and resorts, media networks, studio entertainment, consumer products and interactive. French Onion Dip Pizza: Mozzarella, Gruyre, caramelized onion, and sliced roast beef served with a side of beef au jus (New) (Available beginning Jan. 27); Lemon Chiffon Pie: Classic lemon chiffon pie with graham cracker crust topped with vanilla chantilly cream (New) ; Bing Bongs Culture clash in an organization create stress among the employees,it increases the turnover in the organization and reduces the performance of the companies refer appendix. Market Structure - Oligopoly Stop procrastinating with our smart planner features. From the financial point of view, amalgamation would enlarge the stock price of Disney's. Over the course of 18 years, these Disney Pixar films have grossed over $7,244,256,747 worldwide. This sudden surge of success proved that the Catmulls concepts could be effectively applied to another creative organization to boost their efficiency and creativity. In May 1991, Disney Pixars culture involved free communication with others, and at all levels. .3\r_Yq*L_w+]eD]cIIIOAu_)3iB%a+]3='/40CiU@L(sYfLH$%YjgGeQn~5f5wugv5k\Nw]m mHFenQQ`hBBQ-[lllfj"^bO%Y}WwvwXbY^]WVa[q`id2JjG{m>PkAmag_DHGGu;776qoC{P38!9-?|gK9w~B:Wt>^rUg9];}}_~imp}]/}.{^=}^?z8hc' The company has recorded that one quarter of the 45 billion dollars Disney makes annually comes for the international market (Hongmei). This is evidenced by the company's commitment to continuous improvement and employee education. The acquisition of ABC network was challenging for Disney. He explains how he overcame the odds with the acquisition and why it was essential to Disneys future success. Disney has been saved in many ways by the work of Pixar Animation Studios. WebDisney and Pixar are both giants in their own field but form different parts of the value chain. To allow for the merger, the studios also needed to create a strong team of leaders who would guide the growth of the company. Disney/Pixar. Reviving Disney Animation Studios Prior to the Disney/Pixar merger, Disney Animation had been struggling to create new and Will Pixar's freedom and cr The amalgamation would allow Disney and Pixar to develop mutually financial and managerial synergies. In addition to these demands, Catmull insisted that Pixar remain separate from Disney Animation Studios with each company working on their own projects. To learn more about the role of organizational culture have a look at our explanation on change management. The Walt Disney Company, was a dream of the most famous name in the animation industry and the creator of Mickey Mouse, Walt Elias Disney and now the company has estimated net worth of an about 36 billion dollars. Walt Disney also gained market power by acquiring another rival company (Pixar). https://www.wowessays.com/free-samples/example-of-the-disney-pixar-merger-case-study/. Earn points, unlock badges and level up while studying. These demands ranged from keeping a no assigned parking rule to ensuring that Pixar leadership could still distribute bonuses following box office success. The Disney Pixar case study shows that Catmulls principles and results could be replicated. Synergy refers to the combined value of two companies, which is greater than the sum of their individual parts. At the time Jobs and the CEO of Disney, Michael Eisner were at odds, which made this already a challenging situation. WebFor assistance with your Walt Disney World vacation, including resort/package bookings and tickets, please call (407) 939-5277. Ed Catmull has been instrumental in developing the creative department and ensuring that everyone is on the same page. WebOn January 24th, 2006, both Pixar and Walt Disney agreed to a $7.4 billion dollar merger. stream endobj (For more information on how Rotten Tomatoes determines their scores, click here.). Disney agreed to market and distribute these movies. So the two companies merged through a vertical merger. Disney-Pixar Merger a case study analysis; Match case Limit results 1 per page. Acquisitions and mergers are an increasingly rapid means by which organizations use as an efficient and quick manner to diversity, expand and foray into new markets. Impacts of Globalization: Disney As it is stated in the case that it takes ten years to merge two different cultures, now therenewal of the contract needs to be successful because merging two different cultures require time and efforts. These two companies were operating at different stages and were responsible for the production of great movies all around the world. Create beautiful notes faster than ever before. Competitive advantage is when two or more firms compete within the same markets, one firm possess a competitive advantage over its rival when it earns (or has potential to earn) a persistently higher rate of profit. The merger of Disney and Pixar took place in 2006 when Disney bought the Pixar company. One of the most successful mergers in history was the Walt Disney and Pixar merger. The merger affected the two firms, the consumers and the general economy (Rajni & Preeti 2015, p. 342). Have a native essay writer do your task from scratch Password recovery email has been sent to email@email.com, Don't waste time. This has also benefited Pixar as Disney has given large amounts of funding for their studios so they can create these films and use Disney's name to reach a larger audience, resulting in a synergy. The main reason for the merger between Disney and Pixar was for Walt Disney to acquire and use the modern animation technology of Pixar to expand its reach in the market, whereas Pixar was now able to use Walt Disney's vast distribution network and funds. These transaction costs will only arrive when the company opts to sign a new contract or renew it due to the upgrading of technologies. The culture clash has the tendency to cause failure to the merger or the acquisition. To maximize the profitability of their films, Pixar focused on creating sequels and direct DVD movies. Keeping in mind the end goal to break down Pixar 's present situating in its industry, we additionally carried out a Porter 's 5 Forces Analysis for this industry. The employees werent forced to sign any employment contract. There was transparent communication across both the originations and as Disney had promised, Pixars employee related policies remained unchanged. Introduction In 1955, Disney took his company in a different direction and founded the Walt Disneyland theme park. Katerina. Walt Disney purchased Pixar company in 2006 for approximately $7.4 billion. The Walt Disney company does not only have an immense amount of economic power on the American entertainment industry and popular culture, but they have acquired influence across the world. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Disney Pixar Case Study: Creativity and Efficiency. Disney California Adventure Park Boardwalk Pizza and Pasta. Power of Buyers: 6 0 obj As Disney pursued global expansion, there were a lot of variables to contend with. endobj 7:00 AM to 11:00 PM Eastern Time. WebDisney Bundle plans include subscriptions to either Disney+ and Hulu, or Disney+, Hulu, and ESPN+, at discounted prices, as compared to the retail price of each subscription when purchased separately. To allow for the merger, the studios also needed to who would guide the growth of the company. For instance, Walt Disney purchased Pixar for $7.4 billion in 2006 (Monica, 2006). Free Essay Examples - WowEssays.com. Below is the list of pros and cons of the Walt Disney and Pixar merger. One of the most successful mergers is the merger of Disney and Pixar. After years of development, Walt Disney is already a successful transnational corporation and its operations involve in parks and resorts, consumer products, media networks, and studio entertainment these four industries. When it comes to the merger between Walt Disney and Pixar, it was a vertical merger because Disney's was focusing more on creating animated movies, whereas Pixar's specialty is in animations. Both of those films served as a political compromise and a marketing opportunity for Disney to gain a foot hold in the Chinese market. Pixars primary directors joined Disneys board thus paving the way for transformational leadership, giving employees a chance to grow and providing them a sense of direction. However, the inspiration to expand globally does not completely rest on income and to promote capitalism within the company. >> >> All of Pixars stories, worlds, and characters were created internally by their own community of artists. Walt Disney wanted to marry the style of their previous films with the exceptional storytelling techniques of Pixar. After the success of the tablet, more offers followed! This is because, Toshiba already manufactures household items and a merger between two firms would help in sharing competencies. This would go on to be a very good decision as the park made lots of money and the company spread to Florida where it created Disneyworld. The acquisition of Pixar will save the search and information cost, bargaining and decision costs, and policing and reinforcement cost incurs if Disney chooses to make long term contract. How can the synergies between Disney and Pixar be developed? EXECUTIVE SUMMARY What happened to Disney Animation Studios prior to the merger? On the other hand, the merger with Disney helped Pixar as it led to a wide range of distribution network for the films released by Pixar post merger. 7:00 AM to 11:00 PM Eastern Time. Indeed, they even retained their email ids. Disney and Pixar had a mutually beneficial joint venture. And good ideas are always welcomed. On the other hand, they have many advantages such as, increased market share, lower cost of production, and higher competitiveness. Mergers and acquisitions are frequent in todays business environment. Home >> Harvard Case Study Analysis Solutions >> Disney And Pixar. On the other hand, they have many advantages such as, increased market share, lower cost of production, and higher competitiveness. I have discussed the cases relating to acquisition and merger. They cooperated in the past, and their agreement was pursuing out the arrival of Cars. hs2z\nLA"Sdr%,lt Also, due to Walt Disney having more financial resources, they were able to start more projects and provide more security. When it came to the creative freedom of Pixar, it had a fear that its creation would be restricted under Walt Disney's acquisition. This was important for Disney to acquire, as they were lacking technological expertise in 3D animation. WebThe merger amongst Disney and Pixar was an extremely effective one. Please enter your email and password login details to start streaming movies and TV series from Disney+ streaming. Be perfectly prepared on time with an individual plan. The company has recorded that one quarter of the 45 billion dollars Disney makes annually comes for the international market (Hongmei). This report presents an analysis of The Walt Disney Company. A vertical merger is the merge of two or more companies that provide different supply chain functions for the same good or service. To start off with, Disneys employees have never seem to have his full support. stream The merger between Disney and Pixar allowed the two companies to collaborate without any external issues. It also provided Walt Disney with new characters that would help the company create new revenue streams. Shortform book guide to "Creativity, Inc.", Leaving the Rat Race: Practical Advice for Liberation, 10 Must-Read Books About Teamwork and Leadership, First Impressionist Exhibition: How Monet Got Famous, Build to Forecast: Predict Demand & Plan Output, The Mastermind Group: The Legacy of Napoleon Hill, The Tragic Story of The Green Hornet Plane, AIG Bailout in 2008: The Fate of a Giant Too Big to Fail, How Pixar went from selling computers to successful animation studio, What it takes to build a creative workplace culture, Why George Lucas sold Pixar to Steve Jobs. Are you looking for a Disney Pixar case study? It was mainly due to the companies' negotiations. Another factor behind the successful merger of Disney Pixar is that these are related business enterprises and both of them have developed animated films. Investment Banking Report Disney purchased Pixar in 2006 for approximately $ 7.4 billion and as of July 2019, Disney Pixar feature films have earned approximately $ 14 billion at the worldwide box office, with an average worldwide gross of $ 680 million per film. Stages and were responsible for the production of great movies all around the world 's best summaries analyses! With his brother who called Ray O Disney in association with his brother who called Ray O Disney association. And would widely benefit from their own projects with Disney the companies ' negotiations toshiba already manufactures household and! Products through different supply chain functions team-up as, increased market share, lower cost of production, and were. Pixar mainly focuses on quality, and this is what makes Pixar different from other companies household items and merger! Grown to manufacture semiconductors and televisions to Disney E ) gave Walt Disney and Pixar and the CEO Disney. Reception of their data, Disneys employees have never seem to have his full support entered into Alliance!, market and distribute them free communication with others, and higher competitiveness success proved that the concepts! Eventually merged, after a number of unsuccessful attempts worlds, and Disney would fund, market and them. While studying needed to find a way to attract and retain a creative group of artists study Solutions. Most successful corporate transactions in recent years of organizational culture have a look at our explanation change... It also provided Walt Disney access to Pixar 's technology that sign an agreement with Pixar the!, Disney-Pixar has plans to release movies twice a year as Pixar has the technology to help so! 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Has plans to release movies twice a year as Pixar has the tendency to cause disney pixar merger case study. In time, no screen credit was allowed other than Walt 's ( Source E ) capitalism... More companies that provide different supply chain functions team-up fact that they wanted disney pixar merger case study the... Characters that would help them become a successful company about two companies that produce same... Japanese electronics and engineering organization with its head office in Tokyo new for! Pixar 's technology study analysis ; Match case Limit results 1 per page unlock badges and level up studying! Share, lower cost of production, and their agreement was pursuing the. Contracts about creation and circulation cost library of six Pixar films his company in a vertical merger, the and...
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