Although Disney acquired Pixar through a hostile takeover, the merger has proven extremely profitable for both entities.

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A merger describes the joining of two independent companies to form a combined entity. Mergers tend to be friendly; in mergers, the two firms agree to join in order to create a combined entity. An acquisition describes the purchase or takeover of one company by another. Acquisitions can be friendly or unfriendly. Disney's acquisition of Pixar, for example, was a friendly one, in which both management teams believed that joining the two companies was a good idea. When a target firm does not want to be acquired, the acquisition is considered a hostile takeover.

Although Disney Acquired Pixar Through a Hostile Takeover, the Merger