Disney to buy comic book powerhouse Marvel for $4B

[Darkangel]

This changes everything for Disney, great move I think, I wonder how this will play out since Islands of Adventure is part of Universal Studios...???





LOS ANGELES – The Walt Disney Co. said Monday it is buying Marvel Entertainment Inc. for $4 billion in cash and stock, bringing such characters as Iron Man and Spider-Man into the family of Mickey Mouse and WALL-E.

Under the deal, Disney will acquire ownership of 5,000 Marvel characters. Many of them, including the Fantastic Four and the X-Men, were co-created by the comic book legend Stan Lee.

Analyst David Joyce of Miller Tabak & Co. said the acquisition will help Disney appeal to young men who have flocked to theaters to see Marvel's superhero fare in recent years. That contrasts with Disney's recent successes among young women with such fare as "Hannah Montana" and the Jonas Brothers.

"It helps Disney add exposure to a young male demographic it had sort of lost some balance with," Joyce said, noting the $4 billion offer was at "full price."

Disney said Marvel shareholders will receive $30 per share in cash, plus 0.745 Disney shares for every Marvel share they own. That values each Marvel share at $50 based on Friday's closing stock prices.

Marvel shares jumped $10.17, or 26 percent, to $48.82 shortly after the market opened. Disney shares fell 47 cents, or 1.8 percent, to $26.37.

Disney said the boards of both companies have approved the transaction, but it will require an antitrust review and the approval of Marvel shareholders.

Disney last made a big purchase in 2006 when it acquired Pixar Animation Studios Inc., the creator of the "Toy Story" franchise, for $7.4 billion in stock.

Disney CEO Robert Iger said the latest acquisition combines Marvel's "strong global brand and world-renowned library of characters" with Disney's "unparalleled global portfolio of entertainment properties" and ability to maximize value across multiple platforms and territories.

Marvel earned a net profit of $206 million last fiscal year, up 47 percent from a year earlier, on revenue of $676 million, as it took movie production in house instead of just cutting licensing deals.

[freak 'n' stein]

This changes everything for Disney, great move I think, I wonder how this will play out since Islands of Adventure is part of Universal Studios...???

My thoughts exactly. I can't see Disney incorporating a lot of the Marvel characters in with the fun-loving happy bunnies and princesses, but I wish them all the best.

[Darkangel]

Maybe Universal will have to pay royalties now to Disney?

Marvel could fit in if they created a new section, possibly in Disney Studios formerly MGM. I also hear they are planning additional parks for the future as well...For something this big I'm sure they can make room. They should a big thing for Marvel at the Downtown Disney area as well, interactive attactions and such!

Darkangel

[drfrightner]

They should have bought YEARS AGO when their stock was like 1 dollar and before Marvel signed all these LONG TERM movie deals with Sony, Paramount, blah, blah.

You see all these movies getting FAST TRACKED NOW... Sony announced they are doing 4, 5 and 6 and they are writting part 5, and 6 now.

I bet they shoot 5 and 6 back to back.

Larry

[hsmag]

I have to say, a part of me thinks Disney did this just out of spite for its competition, Universal. Knowing full well that one of their parks relies so heavily on Marvel and it's characters. What better way to undo your competition at their feet than by purchasing one of the brands they license heavily.

Yet another reason I don't respect Disney anymore (though the mansion will always remain great)

[freak 'n' stein]

In my opinion, I don't think Disney did it to spite Universal as much as help them out. If in deed Universal has to relinquish all rights to the characters and remove them from their park it would actually help them. Universal is adding the entire Harry Potter section to the park. I feel like since land is limited, it would just allow them to get rid of the marvel section and make way for newer, better attractions. Just my thought. I could be COMPLETELY wrong.

[Tater]

I cant wait to see

Hulk Smashes the Jonas Brothers

Or

Wolverine VS Hannah Montana

[Darkangel]

You don't respect Disney? How can you not? If there wasn't a Disney there wouldn't even be a Universal Studios park or all the rest. Disney is the benchmark for quality they changed the game don't hate on them because they know how to make smart business moves and grow. When you go to Universal, they are the ones always copying Disney and taking pot shots at them, Disney is above putting down their competition.... Universal should just be happy Disney didn't buy Marvel 20 years ago, and Harry Potter's rights for their parks.


Darkangel

[michaeldavy]

The news here locally said that it would not affect the Universal licencing agreement, however it now makes Disney an "insider" of the Universal franchise, privy to the development of new venuse at Universal.

An expensive buy in though