The Disney company was having a huge investment in the form of the capital and the capacity to take over any of the company. But the nature of the business in which they are involved is having the importance of the creativity and the technology, that gap was filled by Pixar in the past. Both of the companies were having the joint venture through which they were having the maximum utilization of the capabilities they are having. The strategic position of Disney was higher as compared to the Pixar in terms of the capital, as they were backed by the many successful projects like The Lion King, and Snow White. They are also backed by the various income steams such as the amusement parks and distribution setup of the movies. The strategic position of the Pixar was higher as this was having the creativity and CG technology which helps in the successful completion of the animated movie with the least of the human and time resources (Appendix 1). The willingness to pay for the acquisition of the other companies was best depicted in the case of Disney. As they were having the huge capital supported by the years of the experience and various streams of the income. Moreover, Disney was having experience in the distribution and marketing of the movies. Although, Pixar was the complete success story having the experience of supporting one of the most popular animated movies of the history, who also won the awards like, the Academic awards and Oscar awards (Appendix 2). But, still, the option for the acquisition for the other company was only feasible for Disney. But, according to the scenario given in the case, none of the company was willing to acquire the other organization. Although Disney was having the capability to get Pixar in exchange for the billions of dollars for their technological advancement, capital, and other owners of the company. but reluctant due to the higher prices of either of the companies. If Disney put into the Better-off test, then there are two solutions for the company to manage the emerging crises in their production and increasing costs of the projects. The first option Disney was to acquire the company, Pixar in exchange for the higher costs, while they are already facing the rise in the costing of the company. the cost of the acquisition for the company would be higher, then the other solution to beat the current crisis in the company would attain the contracts as they were having in the past related to the production of the movie. This will allow the company to stay at its current cost structure with more exposure to the best technological methods to create animated characters. This situation will also be suitable for Pixar as well, as this will be providing them the opportunity to work with the best-animated company in the world, who is having a huge competitive edge over their capital capacity. Yes, the common ownership of both companies over the products is valuable. As Disney and Pixar was having an equal share in the profits of the projects, leaving the portion for the marketing and distribute on for the Disney was responsible for this purpose. There was some modification were needed into this as this will keep on creating the mess in between both companies that distribution and the sequel of the movie were held by Disney. This will be undermining the brand identity of Pixar. This can be best negotiated with the help of the further division of the marketing and distribution among both companies (Alcacer, Collis, & Furey, 2005). ReferencesAlcacer, J., Collis, D., & Furey, M. (2005, Mar 2). The Walt Disney Company and Pixar, Inc.: To Acquire or Not to Acquire? Retrieved from hbr.org: https://store.hbr.org/product/the-walt-disney-company-and-pixar-inc-to-acquire-or-not-to-acquire/709462 Appendix 1:           Appendix 2