Jill Diwankatera, Eboni Freeman, Shubhangi Jain, Chris Lam, Nayantara Venkataraman

Agenda

Context Outcome Evaluation Strategy Future

Context

2011- Distribution deal1923 - Disney Founded 2015 George Lucas interview - “white slavers”

1971 - Lucasfilm Founded 2012- Lucasfilm Acquired

Context Outcome Evaluation Strategy Future

StakeholdersInternal External

Bob Iger● CEO of Disney

Consumers● $1.23B globally in box office

George Lucas

● Founder of Lucasfilm

Shareholders● Disney- 1.851B shares outstanding● Lucasfilm- sole owner

Kathleen Kennedy● Current President of Lucasfilm

Creditors● $4B stock and cash

Employees● 150+ layoffs

Competitors● After Star Wars, Marvel, Pixar

acquisition, no one compares

Context Evaluation Strategy Future Outcome

Key Players

➔ Sold Lucas on the success of Marvel and Pixar deals

➔ Developed personal connection over meals

➔ Planning retirement- late 60s

➔ Pressured by expectations of Star Wars fans

Bob Iger George Lucas

Context Evaluation Strategy Future Outcome

Actual Outcomes

Official Agreement

Context Evaluation Strategy Future

Lucas as creative consultant for

future films. Kathleen Kennedy

as President

Lucasfilm sold for $4.05 billion split evenly

between Disney stock and cash

Outcome

After Effects

➔ George Lucas interview “I sold Star Wars to white slavers”

➔ Dissatisfaction with The Force Awakens

➔ “Why Buying Star Wars and Lucasfilm is the Best $4 Billion Disney Ever Spent”- fool.com

➔ Success of The Force Awakens and Rogue One

Context Evaluation Strategy Future Outcome

Interests and Positions

Parties Disney Lucasfilm

Interests Acquire Star Wars and gain creative control of the franchise

Star Wars left to run independently

Target Offer~ $4 Billion; Disney gaining creative

control and licensing/merchandising rights

Star Wars is left to run independently; retain some

creative control

BATNA Pursue other film franchises Continue to run Lucasfilm

Reservation Price $4 Billion + Under $4 Billion

Context Evaluation Strategy Future Outcome

Critical Issues

Trust

Media Richness

Emotions

Context Evaluation Strategy Future Outcome

Areas of Strength

Focused on Substance

Negotiated face-to-face

Took his time

Context Evaluation Strategy Future Outcome

Weak BATNA

Reservation Price

Emotions

Contingency Plan

Areas of Weakness

Context Evaluation Strategy Future Outcome

Recommendations

One-text Procedure

Prepare BATNA, RP, Interests

Create contingency

plans

Context Evaluation Strategy Future Outcome

If We Could Go Back

● Improved relationship

● Easier engagement

● Emotional control ● Optimal outcome ● Objective metrics● Agreement bias

One Text Procedure

Contingency Plan

Prepare BATNA, RP, and Interests

Context Evaluation Strategy Future Outcome

Moving Forward

● Compromise ○ Search for dovetailing opportunities

● Research○ Know the laws and culture

● Explore○ Ask for the other party’s interests

“‘Star Wars’ teaches us about the struggle between good and evil; it is a story of good guys and bad guys, but the real world is much different. We must make room for negotiation—and common sense.”

Context Evaluation Strategy Future Outcome

● Strengths

● Weaknesses

● Recommendations

● Future Advice

Key Takeaways for All

Context Evaluation Strategy Future Outcome

Q&A

Q&A

Trust

Media Richness

Emotions

One-text Procedure

Prepare BATNA,

RP, Interests

Create contingency

plans

Recap

References Stack, Liam. (2015, Dec 31). George Lucas Criticizes Latest ‘Star Wars’ Installment. The New York Times. Retrieved from https://www.nytimes.com/2015/12/31/movies/george-lucas-criticizes-latest-star-wars-installment.html?_r=1

Leonard, Devin. (2013, March 7). How Disney Bought Lucasfilm - and Its Plans for ‘Star Wars’. Bloomberg. Retrieved fromhttps://www.bloomberg.com/news/articles/2013-03-07/how-disney-bought-lucasfilm-and-its-plans-for-star-wars

PON Staff. (2016, Nov 3). The Star Wars Negotiations and Trust at the Negotiation Table. Harvard Law School Program on Negotiation. Retrieved from https://www.pon.harvard.edu/daily/business-negotiations/a-forceful-deal-george-lucas-puts-his-trust-in-disney/

ABC News. (2012, Oct 30). Disney to Acquire Lucasfilm for $4 billion. ABC News. Retrieved from http://abcnews.go.com/blogs/business/2012/10/disney-to-acquire-lucasfilms-for-4-billion/

Miller, Daniel. (2015, June 6). How Robert Iger’s ‘fearless’ deal-making transformed Disney. Los Angeles Times. Retrieved from http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-disney-iger-20150607-story.html