The Walt Disney Company is buying long-time partner Pixar Animation Studios, which made blockbuster films Toy Story and Finding Nemo.

Less than a year after going public on the strength of hit films such as Shrek, DreamWorks Animation SKG is battling a DVD market slump that forced it to warn of a loss in the second quarter and to lower its full-year outlook.

Comcast Corporation astounded the financial world with its offer to buy The Walt Disney Company, yet the cable television giant now faces a daunting task in selling the blockbuster combination – and investors have already indicated the proposed price is too low.