Star Wars-Disney acquisition analysis and recommendations
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Transcript of Star Wars-Disney acquisition analysis and recommendations
Jill Diwankatera, Eboni Freeman, Shubhangi Jain, Chris Lam, Nayantara Venkataraman
Agenda
Context Outcome Evaluation Strategy Future
Context
2011- Distribution deal1923 - Disney Founded 2015 George Lucas interview - “white slavers”
1971 - Lucasfilm Founded 2012- Lucasfilm Acquired
Context Outcome Evaluation Strategy Future
StakeholdersInternal External
Bob Iger● CEO of Disney
Consumers● $1.23B globally in box office
George Lucas
● Founder of Lucasfilm
Shareholders● Disney- 1.851B shares outstanding● Lucasfilm- sole owner
Kathleen Kennedy● Current President of Lucasfilm
Creditors● $4B stock and cash
Employees● 150+ layoffs
Competitors● After Star Wars, Marvel, Pixar
acquisition, no one compares
Context Evaluation Strategy Future Outcome
Key Players
➔ Sold Lucas on the success of Marvel and Pixar deals
➔ Developed personal connection over meals
➔ Planning retirement- late 60s
➔ Pressured by expectations of Star Wars fans
Bob Iger George Lucas
Context Evaluation Strategy Future Outcome
Actual Outcomes
Official Agreement
Context Evaluation Strategy Future
Lucas as creative consultant for
future films. Kathleen Kennedy
as President
Lucasfilm sold for $4.05 billion split evenly
between Disney stock and cash
Outcome
After Effects
➔ George Lucas interview “I sold Star Wars to white slavers”
➔ Dissatisfaction with The Force Awakens
➔ “Why Buying Star Wars and Lucasfilm is the Best $4 Billion Disney Ever Spent”- fool.com
➔ Success of The Force Awakens and Rogue One
Context Evaluation Strategy Future Outcome
Interests and Positions
Parties Disney Lucasfilm
Interests Acquire Star Wars and gain creative control of the franchise
Star Wars left to run independently
Target Offer~ $4 Billion; Disney gaining creative
control and licensing/merchandising rights
Star Wars is left to run independently; retain some
creative control
BATNA Pursue other film franchises Continue to run Lucasfilm
Reservation Price $4 Billion + Under $4 Billion
Context Evaluation Strategy Future Outcome
Critical Issues
Trust
Media Richness
Emotions
Context Evaluation Strategy Future Outcome
Areas of Strength
Focused on Substance
Negotiated face-to-face
Took his time
Context Evaluation Strategy Future Outcome
Weak BATNA
Reservation Price
Emotions
Contingency Plan
Areas of Weakness
Context Evaluation Strategy Future Outcome
Recommendations
One-text Procedure
Prepare BATNA, RP, Interests
Create contingency
plans
Context Evaluation Strategy Future Outcome
If We Could Go Back
● Improved relationship
● Easier engagement
● Emotional control ● Optimal outcome ● Objective metrics● Agreement bias
One Text Procedure
Contingency Plan
Prepare BATNA, RP, and Interests
Context Evaluation Strategy Future Outcome
Moving Forward
● Compromise ○ Search for dovetailing opportunities
● Research○ Know the laws and culture
● Explore○ Ask for the other party’s interests
“‘Star Wars’ teaches us about the struggle between good and evil; it is a story of good guys and bad guys, but the real world is much different. We must make room for negotiation—and common sense.”
Context Evaluation Strategy Future Outcome
● Strengths
● Weaknesses
● Recommendations
● Future Advice
Key Takeaways for All
Context Evaluation Strategy Future Outcome
Q&A
Q&A
Trust
Media Richness
Emotions
One-text Procedure
Prepare BATNA,
RP, Interests
Create contingency
plans
Recap
References Stack, Liam. (2015, Dec 31). George Lucas Criticizes Latest ‘Star Wars’ Installment. The New York Times. Retrieved from https://www.nytimes.com/2015/12/31/movies/george-lucas-criticizes-latest-star-wars-installment.html?_r=1
Leonard, Devin. (2013, March 7). How Disney Bought Lucasfilm - and Its Plans for ‘Star Wars’. Bloomberg. Retrieved fromhttps://www.bloomberg.com/news/articles/2013-03-07/how-disney-bought-lucasfilm-and-its-plans-for-star-wars
PON Staff. (2016, Nov 3). The Star Wars Negotiations and Trust at the Negotiation Table. Harvard Law School Program on Negotiation. Retrieved from https://www.pon.harvard.edu/daily/business-negotiations/a-forceful-deal-george-lucas-puts-his-trust-in-disney/
ABC News. (2012, Oct 30). Disney to Acquire Lucasfilm for $4 billion. ABC News. Retrieved from http://abcnews.go.com/blogs/business/2012/10/disney-to-acquire-lucasfilms-for-4-billion/
Miller, Daniel. (2015, June 6). How Robert Iger’s ‘fearless’ deal-making transformed Disney. Los Angeles Times. Retrieved from http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-disney-iger-20150607-story.html