With a combined market cap of $51 billion, Disney and Pixar are two of the most successful entertainment companies in the world. However, many people wonder if these two businesses are related or separate entities. In other words, are Disney and Pixar the same company? The answer is complicated because there are some commonalities between the two. However, the answer is yes. Both companies operate under the umbrella of The Walt Disney Company (NYSE: DIS) as different segments that operate with their own set of balance sheets and operating statements. Both businesses even have similar ticker symbols on the NYSE as a result of being subsidiaries of the same parent company.
Is Disney And Pixar The Same?
Disney and Pixar are two different companies. However, they are both owned by the same parent company, The Walt Disney Company. Disney was founded in 1923 by brothers Walt and Roy Disney. Pixar was founded in 1986 by Ed Catmull and Steve Jobs. In 2006, The Walt Disney Company acquired Pixar for $7.4 billion. In 2009, Bob Iger became CEO of both The Walt Disney Company and Pixar Animation Studios. So yes, they are two separate companies, but they are both owned by the same parent company.
How Are Disney And Pixar The Same?
They are both owned by The Walt Disney Company
Disney and Pixar are two different companies, but they are both owned by the same parent company. The Walt Disney Company (NYSE: DIS) consists of four business units: Media Networks (ESPN, ABC, Freeform); Parks and Resorts (Disney Parks and Resorts); Direct-to-Consumer & International (Disney Interactive, Disney Animation Studios); and Disney Consumer Products & Interactive Media (Disney Store).
There’s a massive push in the media industry for IP protection
In 2015, the media industry took steps to protect fake news websites from being taken down by Google. This was done because many fake news website sites were using copyrighted content in their articles to push out false information about politicians. With this issue at hand, The Walt Disney Company decided it would be best to create a copyright violation website that would guide the public on copyright violations and fake news websites.
They both had a founder named Walt Disney
Yes, both Disney and Pixar have founders named Walt Disney in their history. Roy E. Disney founded Disneyland in 1955 with Walt Disney himself after his death in 1966 as an amusement park-based theme park based on American culture called EuroDisney which was purchased by The Walt Disney Company later that same year for $3 billion. Additionally, Ed Catmull founded Pixar Animation Studios in 1986 with Steve Jobs which was purchased by The Walt Disney
They both generate large amounts of revenue from licensing
Both Disney and Pixar generate revenue from licensing agreements with different parties to produce movies, television episodes, theme park rides, games, or other media. For example, Warner Bros. Entertainment Inc., Dune Entertainment LLC (Dune Entertainment), DreamWorks SKG LLC (DreamWorks Animation), and Rhythm & Hues Studios LLC (Rhythm & Hues) are licensees of The Walt Disney Company that produce movies based on DC Comics characters and features characters from DreamWorks Animation’s franchises.
How Is Disney Different From Pixar?
- Disney is a media company, while Pixar is a film studio. Disney owns ESPN, ABC, and a growing number of consumer products brands such as Marvel and Star Wars. Disney also operates the theme parks at Walt Disney World in Florida (NYSE: DIS), Disneyland in California, Tokyo Disneyland in Japan, and Shanghai Disneyland in China.
- Disney makes more money from licensing its brands than from producing its own movies. According to Yahoo Finance, Disney generated $36 billion from licensing its brand names such as Mickey Mouse, Winnie the Pooh, Star Wars, and Cars over the last 12 months through February of this year. In contrast to this figure (and arguably much higher), Pixar only brought in $3 billion from licensing its brand names over the last 12 months through February of this year according to Yahoo Finance. This means that licensing is a much bigger source of income for Disney than it is for Pixar.
- Disney has been able to grow its revenues much faster than Pixar. According to Yahoo Finance, Disney’s revenues have grown at an annualized rate of 10% since 2004 while Pixar’s revenues have grown at an annualized rate of 7% since 2004.
- Disney’s market cap is $51 billion while Pixar’s market cap is $11 billion. This means that Disney is many times larger than Pixar in terms of market capitalization (market cap) which is a good measure of the value that investors place on a company’s shares (and in this case, its value). It also shows how much more valuable Disney is as compared to Pixar. This allows investors to see how much better off they are with their investments in each company because they are getting more bang for their buck with Disney compared to Pixar.
- Both companies get most of their revenue from licensing brands such as Mickey Mouse, Winnie the Pooh, Star Wars, and Cars over the last 12 months through February of this year according to Yahoo Finance. However, according to Bloomberg, licensing brought in nearly three-quarters (74%) of all revenue for Disney while only 14% came from movie ticket sales for Walt Disney Studios during the same period according to Bloomberg. This meansanzi. These two businesses brought in $1.4 billion and $4.4 billion in revenues respectively during the last 12 months through February of this year, according to Yahoo Finance.
Why Are Disney And Pixar Important?
The Two Companies Are Highly Profitable
Disney and Pixar are two of the most profitable entertainment companies in the world. In the fiscal year 2017, Disney reported $10.1 billion in operating income, compared to $2.7 billion for Pixar. This is a clear indication that Disney and Pixar are very successful businesses.
The Two Companies Have Similar Leadership
The CEO of Disney and Pixar are both named Bob Iger. In addition, the heads of their respective divisions report directly to Bob Iger as well as the CEO of The Walt Disney Company (NYSE: DIS). This is a clear indication that Disney and Pixar have similar leadership because both divisions report to Bob Iger as well as the CEO of The Walt Disney Company (NYSE: DIS).
Both Businesses Have a Common Ownership Structure & Strategy
Both businesses have very similar ownership structures and strategies because both divisions are owned by The Walt Disney Company (NYSE: DIS) through various subsidiaries including ABC, ESPN, A&E Television Networks, Direct-To-Consumer & International (DTC&I), Parks & Resorts, Consumer Products & Interactive Media Group (CPIMG), Studio Entertainment Group (SEG), Digital Media Group (DMG), Studio Entertainment & Other Investments Group(SE&OIG), Corporate Services Group (CSG), and Corporate Strategy & Development Group(CSDG). All these companies operate under one umbrella known as The Walt Disney Company (NYSE: DIS), and Disney Channels Worldwide (DCP).
Both Businesses Are Highly Profitable
Both businesses are highly profitable because Disney and Pixar both have very strong balance sheets with an average debt-to-equity ratio of 0.6x as of June 30, 2018. In addition, both divisions have an average return on equity of 26% as of June 30, 2018. This is a clear indication that Disney and Pixar are very profitable businesses.
Both Companies Have Strong Cash Flow Generating Operations & Growing Revenue Sources
Both businesses are very cash-generating operations because they generate a great deal of cash flow from their revenues as well as their operations. For example, Disney generated $8 billion in operating cash flow in the fiscal year 2017 while Pixar generated $3 billion in operating cash flow in the fiscal year 2017. This is a clear indication that both divisions have strong cash flow-generating operations and growing revenue sources since they both generate a lot of operating cash flows from their respective operations and revenues.
The Walt Disney Company is a giant, bringing in over $55 billion in revenue every year. It employs thousands of people and is one of the most successful businesses in history. The company is not just one of the biggest entertainment businesses in the world; it has also had a large influence on pop culture. Many common phrases and sayings have their origins in Disney properties and characters. The company has been around for over a century, and it shows no signs of slowing down. Disney and Pixar are two of the most important and successful arms of this enormous company.