Abstract
Walt Disney and Time Warner has been in a long-term rivalry in media industry. Despite the fact that Disney’s attempt to acquire Time Warner failed in 2016, it is still suspected that a conglomerate of Disney and Warner will emerge in the future. By taking a deep insight of companies’ business backgrounds and history of rivalry, the paper summarizes that whether this deal will happen remains inconclusive because of the potential resistance from the regulation institutions, AT&T and even the whole industry while it greatly benefits the two stakeholders, introducing an unprecedented, creative force to the industry. We also further infer the potential business strategies applied by Disney once it owns WarnerMedia. Using Porter’s Five Forces Analysis, we conclude that the combined enterprise will have to necessarily sacrifice some established styles, while they retain high customer loyalty, relatively threatening substitutes and high entrance barrier.
Highlights
Disney acquired many other studios through mergers and acquisitions, giving them a strong presence in the market
Our discussion begins with the description of Disney and Time Warner’s Business Models, their current shortcomings and their common history as rivals, we evaluate the possibility, values and influences and hope to foreseen the applicable strategies for Disney
This paper aims to consider the future relationship between Disney and Warner Bros. based on their historical relationship
Summary
Disney acquired many other studios through mergers and acquisitions, giving them a strong presence in the market. Film Studio has acquired a number of other studios, greatly increasing its presence in the market. They currently own Pixar, Marvel Studios, 20th Century Studios, etc. Has built a reliable distribution network, allowing the company to have a strong free cash flow, which can provide the company with resources to expand into new projects [2]. Disney and Time Warner’s Business Model, Weaknesses, and History of Competition
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