The document analyzes a proposed acquisition of Pixar Studios by The Walt Disney Company. It provides background on the companies' existing partnership and distribution agreement. It considers three alternatives for the Department of Justice: allowing the acquisition, denying it, or allowing it with conditions. The document recommends allowing the acquisition, arguing that both companies would benefit from the synergies of a full merger. Pixar relies on Disney for distribution and would struggle without it. The acquisition poses little threat to competitors and would strengthen Disney's position in animation.