Pixar's Disney Deal

Disney's acquisition of Pixar for $7.4 billion is analyzed, revealing a modest annualized return of 2% over ten years. The discussion highlights Pixar's significant contribution to Disney's revenue, estimating around $3 billion annually from its films and related merchandise. Despite the lower-than-expected return, Pixar's impact on Disney's market cap is notable, prompting further evaluation of this landmark deal.