Disney was founded by brothers Walt and Roy Disney in 1923 as the Disney Brothers Cartoon Studio. From humble premises in suburban Los Angeles, the company established itself as a pioneer in the American animation industry during the 1980s. Since then, Disney has diversified into television, theme parks, live-action film production, streaming media, consumer products, and publishing. Today, The Walt Disney Company is a sizeable corporate enterprise and media empire.
Subsidiary / Brand
Business Category
Key Differentiator
Integration Strategy
Disney+
Streaming and On-Demand Content
Disney’s exclusive streaming service.
Represents Disney’s entry into the streaming market, offering a digital platform for its vast content library and original programming.
Disney Channel
Cable and Satellite Television
Family-oriented entertainment network.
Provides a dedicated channel for Disney’s content and serves as a key distribution platform for Disney’s television shows and movies.
Lucasfilm
Film and Entertainment
Creator of the “Star Wars” franchise.
Acquired for its iconic “Star Wars” universe, contributing to Disney’s film and merchandise portfolio, including theme park attractions.
Marvel
Film, Comics, and Entertainment
Home to popular superhero franchises.
Offers a wide range of superhero content, driving box office success, merchandise sales, and theme park attractions.
Pixar
Animation and Film Production
Renowned for groundbreaking animated films.
Enhances Disney’s animation capabilities, produces hit films, and contributes to the company’s family-friendly image.
ESPN
Sports Media and Broadcasting
Leading sports network with diverse programming.
Adds sports content and live events to Disney’s media offerings, attracting sports enthusiasts and viewers.
ABC
Television Broadcasting
Major television network with various shows.
Strengthens Disney’s presence in the broadcast television industry, airing a wide range of programming and news.
National Geographic
Media and Exploration
Renowned for educational and documentary content.
Offers educational and nature-focused programming, aligning with Disney’s commitment to educational content.
Hulu
Streaming and On-Demand Content
Streaming platform with a diverse content library.
Provides a platform for Disney to offer a broader range of content, including mature and acquired content.
20th Century Studios
Film Production and Distribution
Home to a vast library of films and franchises.
Expands Disney’s film library and content creation capabilities, contributing to the overall content portfolio.
Disney Parks, Experiences, and Products
Theme Parks and Consumer Products
Iconic theme parks, resorts, and merchandise.
Creates immersive experiences and merchandise inspired by Disney’s intellectual properties, promoting brand loyalty.
Disney Cruise Line
Cruise Vacations
Family-friendly cruise vacations.
Extends the Disney experience to cruise vacations, providing themed cruises and entertainment.
Disney Interactive Studios
Video Games and Interactive Media
Develops video games based on Disney franchises.
Enhances Disney’s presence in the gaming industry and leverages popular characters in interactive media.
Disney Theatrical Group
Theater Productions
Produces Broadway and theatrical shows.
Expands Disney’s reach into live entertainment, bringing Disney stories to the stage and connecting with theater audiences.
Table of Contents
21st Century Fox
Disney acquired 21st Century Fox in 2019 for $71 billion. Through the acquisition, Disney became the owner of 20th Century Fox film and television studios. The company also secured cable networks such as FX and National Geographic and a 30% controlling interest in Hulu LLC.
Many saw the 21st Century Fox acquisition is crucial to Disney’s plans in meeting increased consumer demand for streaming and other media content.
Capital Cities/ABC
Perhaps more significant than the acquisition of 21st Century Fox was Disney’s acquisition of Capital Cities/ABC in 1995. Indeed, the $19 billion merger was the second-largest corporate takeover at the time, bringing together two juggernauts of the media and family entertainment industries.
Importantly, the deal allowed Disney to become the first such company with a major presence in the four key distribution systems of broadcasting, telephone, cable television, and entertainment.
Among other assets, Disney became the owner of The History Channel, Lifetime Television, and A&E Network. Part-ownership in sports channel ESPN also allowed the company to expand its overseas reach.
Pixar
Steve Jobs created Pixar after the legendary entrepreneur bought the computer animation division from Lucasfilm in 1986. Under his leadership, Pixar created iconic movies such as Toy Story and Finding Nemo.
After acquiring Pixar in 2006, Disney has released several more iconic films including Cars, Ratatouille, and several Toy Story sequels.
Lucasfilm Ltd.
When Disney purchased Lucasfilm Ltd. in October 2012, many Star Wars fans thought the company would destroy the brand George Lucas had created.
Similar to its acquisition of Pixar, however, Disney managed to successfully carry on the Star Wars franchise without alienating fans. It has also incorporated the Star Wars and Indiana Jones franchises into several branded theme parks and resorts.
Steamboat Ventures
Founded in 2000, Steamboat Ventures was named after the 1928 Mickey Mouse cartoon Steamboat Willie.
Steamboat Ventures enables Disney to invest in early growth stage companies pursuing opportunities at the intersection of the technology, media, and consumer sectors.
Some of the more recognizable investments include Photobucket, GoPro, EdgeCast, and Elemental Technologies. Steamboat Ventures also has interests in several Chinese social media and gaming companies.
Key takeaways:
Disney was founded by brothers Walt and Roy Disney in 1923. From humble beginnings in suburban Los Angeles, the company is now a vast media and corporate empire.
Disney acquired Capital Cities/ABC in 1995 and 21st Century Fox in 2019. These high-profile acquisitions gave the company ownership of various television stations and cable networks and enabled it to meet growing consumer demand around streaming content.
Disney expanded into animated and non-animated film production after purchasing Pixar and Lucasfilm. Through Steamboat Ventures, Disney also invests in early-stage growth companies.
Key Highlights
Founding and Evolution: Disney was founded in 1923 by Walt and Roy Disney as the Disney Brothers Cartoon Studio. It began as an animation studio and gradually expanded into diverse areas including television, theme parks, film production, streaming media, consumer products, and publishing.
21st Century Fox Acquisition: In 2019, Disney acquired 21st Century Fox for $71 billion. This acquisition provided Disney with ownership of 20th Century Fox film and television studios, cable networks like FX and National Geographic, and a controlling interest in Hulu. It was seen as a move to address the increasing demand for streaming and media content.
Capital Cities/ABC Acquisition: The acquisition of Capital Cities/ABC in 1995 was a major milestone for Disney. This $19 billion merger allowed Disney to establish a significant presence in various distribution systems, including broadcasting, telephone, cable television, and entertainment. It brought together assets like The History Channel, Lifetime Television, and A&E Network.
Pixar Acquisition: Disney acquired Pixar in 2006, a company co-founded by Steve Jobs. Pixar was renowned for creating iconic animated films like Toy Story and Finding Nemo. The acquisition led to the release of more beloved films like Cars, Ratatouille, and additional Toy Story sequels.
Lucasfilm Ltd. Acquisition: Disney’s acquisition of Lucasfilm Ltd. in 2012, known for the Star Wars franchise, initially raised concerns among fans. However, Disney managed to continue the franchise’s success and integrated it into theme parks and resorts. The acquisition also included the Indiana Jones franchise.
Steamboat Ventures: Established in 2000, Steamboat Ventures is Disney’s venture capital arm. It invests in early growth stage companies operating at the intersection of technology, media, and consumer sectors. Some of its notable investments include Photobucket, GoPro, and interests in Chinese social media and gaming companies.
Disney’s main shareholders include Robert A. Iger, chief executive officer (CEO) of The Walt Disney Company between 2005-2020 and he returned as CEO by 2022. Other significant individual shareholders, as of 2022, comprise Susan E. Arnold, Christine M. McCarthy, and Alan N. Braverman. Main institutional investors include Blackrock Inc. with 6.4% and The Vanguard Group with 8%, respectively.
It would be hard to argue for a more recognizable entertainment brand than Disney. Disney is, of course, synonymous with Walt Disney, but it was Walt and his brother Roy who started the company in 1923 in Burbank, California. Disney content is now broadcast on over 100 channels in 34 different languages across the globe.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
