Disney Buys Marvel Entertainment for $4 Billion

This is sure to send shockwaves throughout the entire entertainment industry: Disney will spend $4 billion to acquire Marvel Entertainment lock, stock, and barrel. According to Market Watch , it's a stock and cash transaction based on the August 28th closing prices, which were about $50 a share for Marvel. Said Disney's Robert Iger in a statement, "This transaction combines Marvel's strong global brand and world-renowned library of characters including Iron Man, Spider-Man, X-Men, Captain America, Fantastic Four and Thor with Disney's creative skills, unparalleled global portfolio of entertainment properties, and a business structure that maximizes the value of creative properties across multiple platforms and territories." "Disney is the perfect home for Marvel's fantastic library of characters given its proven ability to expand content creation and licensing businesses," said Ike Perlmutter, Marvel's Chief Executive Officer. "This is an unparalleled opportunity for Marvel to build upon its vibrant brand and character properties by accessing Disney's tremendous global organization and infrastructure around the world." How is it that nobody heard a whiff of this and suddenly it's been approved by both boards of directors and is already moving forward? You got me. But if you own Marvel stock, you'll get $30 a share and .745 shares of Disney stock for each bit of the Marvel Universe you owned. What this means to the future of Marvel, in terms of its motion picture content, is hard to gauge. I would think at least through 2012, when Marvel already has projects lined up with other studios, Disney will serve as a producer and maybe a co-distributor. I don't think you'll see, for example, Iron Man 2 or The Avengers come directly out of Disney. Where this could really be big, at least in the short term, is home video sales of similar DVD product for current Marvel movie titles, or Disney could even branch out into new animated films the way Warner and DC have for Wonder Woman, Batman, and Green Hornet. Disney's home video business is certainly hard to knock, and this gives Marvel a huge opportunity it never had before. We'll keep you posted on the developments as we hear them.

Comments

[charb0]

its good for us!

[W]

"Damn!" Says every other studio.

[Will]

It just means that instead of guesting on The Electric Company, Spiderman will now make occasional appearances on Hannah Montana.

[Get The Big Picture]

And Grey's Anatomy.

Actually, I meant that as a joke, but can you foresee a time in the not-too-distant future that we have a big-budget Marvel TV series? Makes sense to me.

[D]

I understand this from Marvel's perspective but I don't really see what Disney gets out this deal. Paramount's still under contract to distribute five more Marvel flicks including Iron Man 2 and The Avengers plus Sony still controls Spider-Man and Fox owns the right to all X-Men and Fantastic Four related products. This means realistically Disney isn't going to be able to fully exploit its new subsidiary until 2012 at the earliest when the superhero fad may be over. (Yes I know that Marvel has other sources of revenue besides movies, but its the film division that has sparked new interest in the comic books and merchandising and they have to split a lot the merchandising related with the films with controlling studios).

[D]

I should also add that Universal believes its contract for Marvel properties at its theme parks is still active which would mean Disney can't even put Marvel characters at its theme parks.

[jay smith]

I love disney. Its the best ever maybe minnie will marry Spider Man..

[Asana]

Holy mother of crossovers! Wolverine will now sport Mickey ears and the seven dwarfs will join the X-men! There's just too many puns to be had at this mash up, color me surprised.