Bob Alger, the CEO of Disney, had a great desire to restore Disney to the greatness it once held. With the emergence of Pixie’s animation and new movies, such as Toy Story, Disney was falling behind in the animation department and losing its once great reputation. The merger with Paxar seemed to be the best choice for both companies. Steve Jobs, Pixie’s CEO, felt that the merger was the next logical step in its relationship with Disney. He felt that Disney was the only company with animation in their blood (Holon, 2006). For XML Satellite Radio Holdings, Inc. ND Sirius Satellite Radio, a merger seemed like the best option for both companies at the start of the recent recession. At the time they announced the merger, both impasses were losing subscribers and the start of the recession didn’t help with that issue whatsoever.
In 2007, Sirius Satellite Radio and XML Satellite Radio Holding, Inc. Announced their merger. However, the Federal Communications Commission (FCC) was concerned that the merger between these two big satellite radio companies would create a monopoly. Then, after sixteen months of waiting, the merger was approved by the FCC.Mel Karamazov, CEO of Sirius, would take over as the Chief Executive Officer of the newly formed Sirius, and Hugh Pander, then Ism’s CEO, would stay on until the close of the merger. Both Disney Paxar and Sirius saw an opportunity for change, as well as the necessity for it. Had Disney not wanted Pixie’s creative animation team, it might be Paxar Trademarks or Fox Paxar. Instead, Disney and Paxar saw the opportunity and grabbed it.
They weren’t just thinking in terms of rivalry or profits, they were thinking about building a reputation together that would lead the media and animation industry into a whole new frontier.While Curium’s vision may not have been as broad or progressive as Disney Paxar, it most certainly took advantage of an opportunity to keep the combined satellite radio company afloat during the secession. In combining Sirius and XML Radio, the companies were able to offer their customers a much better selection of news, sports, music, and entertainment in general. The company was looking to stop the loss of revenue by improving their product and making it more attractive to possible subscribers.Disney Paxar and Sirius went through radical changes with their mergers, yet both companies came out On top. Had it not been for their ability to successfully manage change, neither Disney Paxar nor Sirius would have the reputation or popularity that they have today, aside from lessons learned on what not to do during a merger.
As with any change that a company experiences, there are pressures for change and images of change. For Disney, there were reputation pressures that needed to be addressed. It needed to renew its reputation, not just in the movies it made, but in the way it did business.Paxar had growth pressures, which led it to consider Disney as a partner. Sirius and XML Radio were both dealing with market decline pressures, as well as growth pressures. In merging their respective companies, Disney Paxar and Sirius made the necessary changes to deal with these pressures and improve their business models. The mergers brought images of change that were needed for each company to find the direction in which it was headed.
For Disney Paxar, Bob Alger and Steve Jobs were change managers during that merger.They both had their own ideas, but collaborated on the final result of the company. Although the need for a coach change image was necessary for the creative vision of the company, it was the navigator change image that facilitated the overall changes in the merger. Alger knew what he could control during the merger and realized that he must work through the changes as they came. As Steve Jobs was emending and wanted Pixies independence in animation, Alger realized that relinquishing control for that situation was necessary in keeping the company moving forward with the merger.Had Alger maintained a director change image, the merger may not have gone as smoothly as it did, or worst case scenario, not have happened at all. The image of change that best facilitated the Sirius merger was the caretaker change image.
With the FCC taking sixteen months to make a decision on whether or not the merger created a monopoly, Mel Karamazov could only keep watch over the company and address the issues that were within his grasp. It wasn’t just waiting for a decision from the FCC either, it was also waiting to see any possible limitations that may be set for the company as well.Karamazov took care of the company while its future was still in question. If Karamazov had taken on another change image, it may have put too much pressure of the company and stopped the merger. Even with different change images, both companies had successful mergers. Each situation was different from the other and the obstacles encountered were different as well. As previously stated, Bob Alger and Mel Karamazov had different changes images that were appropriate for their companies. Germ was a navigator who realized that control is not always possible in every aspect of change.
This change image seems to represent him the most and helped ensure the finalization of the Disney Paxar merger. As for Mel Karamazov, the wait for the PC’s approval proved that he could take care of the issues at hand with the company, while waiting on the outcome of Curium’s future. These two companies took on the changes that occur during a merger and proved that such a drastic change Can be managed successfully. Even though the focus here is on the management of change during a merger, Disney Paxar and Sirius have also successfully managed he changes that occur throughout the life cycle of a business.