Disney Production Case Study

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Walt Disney is the founder of Disney Production Inc in year 1923. As most of the consumers commented that Disney Production Inc is a one of the well known company located in United State. The reason why they say so is because Disney Production Inc is a wholesome family entertainment compared to other corporation. As most of the people around the world know one of the signature characters of Disney Productions Inc is Mickey Mouse. With this signature characters, Walt Disney has successfully attract public attention and hence he grab the opportunity to come out with the ideas to create more characters to avoid public get bored of their production. With the time flies, Disney Production Inc has successfully become the well known company in U.S. …show more content…

Saul Steinberg purchase quietly the shares issued by Disney Productions and he increased the percentage of share hold in hand from 6.3% to 12.1%. However, the president and CEO of Disney production who is Ron Miller realised this problem only when Saul Steinberg announced to hold 25% of total shares of Disney Production that present in the stock market. Therefore, Ron Miller decide to defense hence take some action such as purchase Arvida Corporation and Gibson Greetings Inc to prevent Saul Steinberg successfully take over his company. However, Saul Steinberg doesn’t give up to takeover Disney Production, hence he avenge with an announcement of 49% of public tender offer at $67.50 per share with the acquisition of Gibsons Greetings and $72.50 per share without Gibsons Greetings Inc which is originally higher than the price before raid began which around $50 per share. Ron Miller feel unbelievable since Disney Production might faced the probability of dismantled, however, there have two solutions to overcome this situation. The first solution is that fight the offer with Saul Steinberg in the courts and media and the second solution is to buy back the share hold by Saul …show more content…

If Ron Miller do not buy back the share hold by Saul Steinberg, the Saul Steinberg will become one of the larger shareholder in Disney Production Inc which has the right to control over the company. However, Saul Steinberg is a raider and he might not have the experience to manage the operation of a company. He may cause the company financial performance not performing well and will hence ruined the public image of Disney Production Inc at the same time will cause the continuous drop in the share price since shareholders lost the confidence of the operation of Disney Production Inc.

Besides, if the company take over by Saul Steinberg, some of the consumers might protest against Saul Steinberg to take over Disney Production by refuse to consume in any outlet or store which under Disney Production Inc and hence affect the company performance.
On the other hand, for former public shareholders who sell off the shares in hand to Saul Steinberg might regret to do so because such a good company will be ruined in the hand of Saul Steinberg. However, some of the former public shareholders might feel lucky because they sell off the share at a higher price, which gained from the issue of take