Disney and Pixar

One of Disney's Core Competencies is animation. In fact, Bob Iger said that animation is the "heart, soul, and engine that drives the train called Disney". However, Disney spent $7.4 Billion on Pixar. Pixar is responsible for animated blockbusters such as Finding Nemo, The Incredibles Cars and Toy Story. Disney's cartoons are classics and consistently do well at the box office and on DVD and now on iTunes.

The article "Pixar's Magic Man" discusses the deal between Disney's Bob Iger and Apple's Steve Jobs.

In another article, John Lasseter, now the head of animation for Pixar and Disney, once fired by Disney said that "Every film that I've made is a tribute to Walt".

Why did they make this deal?
What will this do for Disney? Pixar? Apple?

Gene A. Wright