Disney Pixar Acquisition: What did we learn?
Pharma. But the picture, the Pixar deal is really interesting. The cornered Resource Hamilton kind defines it as like what is something. It's not just one person, but what's what is some resource that this corporation has access to uniquely that nobody else could competitively come arbitrage and higher away in the case of a person, and for Pixar it was the brain trust right, and it wasn't just Ed and John it was. Was the two of them and the collective culture around all the directors picks are and what they were able to accomplish in the creative process, and so I think Disney masterfully handled this where the intimidated by Bagger getting the acquisition to a big reason it happened was he said two to head headed John and Steve Jobs to you. We want you to come. Takeover Disney animation in addition to Pixar. That we realized the brain trust is what is medical. What is the power here and so not only are you gonNA keep it. We're GONNA expand bobbies, the analogy of the canvas that you get to paint on which is perfect for that for that deal. Yeah, last like. So funny of. The other big thing that dictates this is leverage so. I think most of the folks listening to your show. Jeff is like. Many of them are. Software engineers they may have sold. A company at some point and saying things like it took ten days for Disney to get a deal done with Pixar or took the weekend to buy instagram. If they've ever sold their company, they're like what you. That was a six month. Awful, awful process and thank. That is largely the case when the big companies got. Time on their side, the startup usually is either running out of money or has to make a call at some point soon. Do we need to fundraise very sell? It's hard to get multiple bidders looking at you, and so it's it's really rare scenario where a company actually has enough the acquire e actually has enough leverage to force deal to get done and to force a bidding war and I think most of the. The time when it looks like as you know, your sponsor needs to the deal sponsor on the acquiring side needs to carefully use their political capital and bill decks and build models and make pitches internally and stake their career on getting it done, and that just as many month process that gets expensive. It has lawyers, and so that to me is also a big factor in sort of