M&A (mergers and acquisitions) deal as an instrument that increases Disney’s Global competitiveness

Global competitiveness is the ability of companies to compete in international markets and M&A deals are a good instrument that is able to improve its position in the market where the company functions and to overcome its global competitors. Using the example of The Walt Disney Company we proved that availability of competitive advantage, above-average management and market leadership plus properly prepared and implemented M&A deal may result in the increase of company's global competitiveness and its influence in the market.

TWDC had three high-profile M&A deals and each of them was extremely successful and brought a number of significant advantages to the company. Moreover, these deals helped Disney to increase its global competitiveness and increase its market share in each segment the company operates in. Apart from positive economic results, such as revenue, profit and share price growth, The Walt Disney Company managed to diversify its business, attracted new audience, got new skilled managers and increased its influence in the entertainment market. However, today Disney is not the unambiguous leader in four of five segments in which it operates. We suggested improving the weakest and newest segment, Interactive Media, which in our opinion can play an important role in successful activity of the company and will be able to increase its global competitiveness considerably. This segment does not occupy even the tithe of the Interactive Media market but it is very perspective because of general addiction to video games both online and on game consoles and phones.

It is important to notice that the main competitors of The Walt Disney Company, Viacom, Time Warner Inc., Twenty-First Century Fox, CBS, Directiv Group, Inc. and Comcast, also have quite poorly developed Interactive Media segment. Therefore if Disney starts acting now and will redeem the main companies that produce video games, it won't leave any chance to its competitors and will be able to compete with the companies for which this activity is the main one.

We proved that Activision Blizzard Inc. suits well for M&A transaction with Disney as it is capable to bring significant benefits to the company such as synergetic effect, which is the most important motive when a company choses M&As as a method of integration. The synergy is a result, which each company seeks to reach in order to enter the world market and to take the leading positions in it. So, having estimated the synergy, we made a conclusion that this effect is possible to be obtained and it is quite big. Also, using the identical transactions in this branch, we estimated that in a year the revenue of the company has to grow by 20%, the net income has to increase by 28% and the value of The Walt Disney Company has to extend by 26%.

The main strength of Activision Blizzard Inc. is that the company is very influential in its segment of the world market and in each region. Activision Blizzard's positions are very strong in the Asian countries where Starcraft and World of Warcraft games became super - hits. Moreover, AB creates console games for Microsoft Xbox 360, Sony PlayStation 3 and Nintendo Wii, which are traditionally popular in Europe and the USA.

Thus, the hypothesis of this paper (Disney Conglomerate uses the strategy of M&As successfully, which helps it to increase significantly its global competitiveness in the entertainment market) is approved. The main goal, which is identification of Disney's M&A deals' input in the company's global competitiveness and making suggestions on making the company the world leader in entertainment market using M&A deals, is reached.

The Walt Disney Company has to continue to win the entertainment market using mergers and acquisitions transactions and then it will increase its global competitiveness even more and will get the real chance to become the leader in each segment of its activity.

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