Disney to buy Marvel for 4billion

Tarrant220 · 08-31-2009, 10:14 AM

I'm on the fence about it...I hope they don't fuck things up...

Disney to buy comic book powerhouse Marvel for $4B - Yahoo! News

Spoiler Alert, click show to read:

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.

Urlithani · 08-31-2009, 10:19 AM

I don't really know what to make of it either, but I want to be the first to say I want my Marvel vs. Disney fighting game now. SSBB style thanks.

Mickey Mouse vs. Doctor Doom vs. Spider Man vs. Donald Duck? Yes plz.

Lyrical · 08-31-2009, 10:23 AM

Disney is paying alot of jack for Marvel. Marvel went bankrupt a few years ago, and has struggled profitability wise. Marvel made $200 million in a good year. If you look at how companies are valued, a simple model would be to look at pricing in perpetuity. At a hurdle rate of 10%, assuming that Marvel is going to make 200 million forever, the company would be worth 2 billion at the most. Clearly, Disney either believes that Marvel's profitability will continue to improve, or it is pricing in synergies of having Marvel under the umbrella. Clearly, if 2 billion is the most that Disney should pay based on the current business, Disney is being very optimistic about the future.

Pricing this company at 20 times its earnings in a really good year is pretty pricey, and synergies either never happen or take a long time to show up on the bottom line.

Astrocreep · 08-31-2009, 10:36 AM

seems like a very good move. Marvel owns the franchise rights to Spiderman IronMan, Xmen , Fantastic Four, Hulk and the upcoming Avengers. they could stop production of the comic books and simply do the movies and make quite a large profit. do people actuallly go out and buy comic books anymore?

Arbitrary · 08-31-2009, 10:59 AM

Why would you buy a comic book company for all the character licenses and then stop the machinery that created those characters in the first place? As long as it was breaking even I'd let it go forever in the hopes that it churned out more popular characters that could eventually be turned into films or television shows.

Astrocreep · 08-31-2009, 11:10 AM

thats why i asked if people buy comics anymore. i dont know. i admit i dont know. last time i even saw a comic book on sale was a year ago and it was thin as hell and was friggin expensive. so yeah call me whatever, but if Marvel comics arent doing well and i just bought the company to make dough on the movie franchise then i will stop production of the comics or at the least limit their runs, maybe just make yearly hardcover graphic novels instead of spacing things over the course of months.

Neph · 08-31-2009, 11:11 AM

Quote:

Originally Posted by Arbitrary

television shows

This is kinda where I see Disney going with it. If you've ever tuned into the Disney channel (or even flipped by), there aren't any cartoons on it. I could see Disney trying to reignite animated cartoons using Marvel. Then again, how long did that new X-Men animated series last on the WB?

Lyrical · 08-31-2009, 11:12 AM

Quote:

Originally Posted by Astrocreep

thats why i asked if people buy comics anymore. i dont know. i admit i dont know. last time i even saw a comic book on sale was a year ago and it was thin as hell and was friggin expensive. so yeah call me whatever, but if Marvel comics arent doing well and i just bought the company to make dough on the movie franchise then i will stop production of the comics or at the least limit their runs, maybe just make yearly hardcover graphic novels instead of spacing things over the course of months.

Hopefully Disney follows the examples that Time Warner set when they bought DC Comics.

Zarcath · 08-31-2009, 12:38 PM

Can't wait to see Ironman at Disneyland with all the princesses on his arm lined up like bitches. Tony Stark is a pimp.

McCheese · 08-31-2009, 01:04 PM

I know nothing about trademarks and businesses, but how is this going to affect the theme parks?

Universal Studios has Marvel superhero themed rides right now, and they're one of Disney's biggest competitors in the theme park world. Is there any sort of conflict with the rights to characters cause of this?

Kais[] · 08-31-2009, 01:08 PM

Disney isn't buying a comic book, they are buying the rights to some of the most recognizable characters on film today. The marketing and media behemoth that is Disney will more than make up for the buying price of the company through movie rights, theme park, and toy revenues. This opens up a large section of the entertainment market that Disney really doesn't have any influence on: males over the age of 14.

Tyen · 08-31-2009, 01:26 PM

Disney, Pixar, Marvel.
????
Profit

Szlia · 08-31-2009, 01:27 PM

Quote:

Originally Posted by Kais[]

This opens up a large section of the entertainment market that Disney really doesn't have any influence on: males over the age of 14.

Hi! Disney own ESPN, Miramax, Touchstone Pictures... I think they are already doing ok with the males above 14...

Astrocreep · 08-31-2009, 01:40 PM

AFAIK Pixar is not owned by Disney, Pixar is Pixar and disney distributes their films. when Disney tries to do Pixar without Pixar we get Bolt

DisgruntledOrangatang · 08-31-2009, 01:43 PM

Did season 2 of wolverine and the xmen come out yet? Shit was supposed to be about the Age of Apocalypse.

08-31-2009, 12:38 PM	#9 (permalink)
Zarcath is a little tea pot. Join Date: Jan 2004 Location: Carlsbad CA Posts: 6,465 +75 Internets	Can't wait to see Ironman at Disneyland with all the princesses on his arm lined up like bitches. Tony Stark is a pimp. __________________

08-31-2009, 01:43 PM	#15 (permalink)
DisgruntledOrangatang Registered User Join Date: May 2003 Posts: 1,400	Did season 2 of wolverine and the xmen come out yet? Shit was supposed to be about the Age of Apocalypse. __________________ "Talk all you want, but when I say I'm going to kill you, there's nothing you can do but die"

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08-31-2009, 10:19 AM	#2 (permalink)
Urlithani I lieks bacon! Join Date: Jan 2007 Location: Palm Beach, FL Posts: 376 -10 Internets	I don't really know what to make of it either, but I want to be the first to say I want my Marvel vs. Disney fighting game now. SSBB style thanks. Mickey Mouse vs. Doctor Doom vs. Spider Man vs. Donald Duck? Yes plz.

08-31-2009, 10:36 AM	#4 (permalink)
Astrocreep Flings doodoo and poopoo Join Date: Jun 2002 Location: NYC Posts: 5,742	seems like a very good move. Marvel owns the franchise rights to Spiderman IronMan, Xmen , Fantastic Four, Hulk and the upcoming Avengers. they could stop production of the comic books and simply do the movies and make quite a large profit. do people actuallly go out and buy comic books anymore?

08-31-2009, 11:10 AM	#6 (permalink)
Astrocreep Flings doodoo and poopoo Join Date: Jun 2002 Location: NYC Posts: 5,742	thats why i asked if people buy comics anymore. i dont know. i admit i dont know. last time i even saw a comic book on sale was a year ago and it was thin as hell and was friggin expensive. so yeah call me whatever, but if Marvel comics arent doing well and i just bought the company to make dough on the movie franchise then i will stop production of the comics or at the least limit their runs, maybe just make yearly hardcover graphic novels instead of spacing things over the course of months.

08-31-2009, 01:04 PM	#10 (permalink)
McCheese Ruling McDonaldland with an iron fist Join Date: Dec 2003 Location: Maryland Posts: 1,248 +9 Internets	I know nothing about trademarks and businesses, but how is this going to affect the theme parks? Universal Studios has Marvel superhero themed rides right now, and they're one of Disney's biggest competitors in the theme park world. Is there any sort of conflict with the rights to characters cause of this?

08-31-2009, 01:08 PM	#11 (permalink)
Kais[] Registered User Join Date: May 2007 Posts: 568 -15 Internets	Disney isn't buying a comic book, they are buying the rights to some of the most recognizable characters on film today. The marketing and media behemoth that is Disney will more than make up for the buying price of the company through movie rights, theme park, and toy revenues. This opens up a large section of the entertainment market that Disney really doesn't have any influence on: males over the age of 14.

08-31-2009, 01:26 PM	#12 (permalink)
Tyen The future, I came from it Join Date: Mar 2012 Location: Portland, Oregon Posts: 3,664 +3 Internets	Disney, Pixar, Marvel. ???? Profit

08-31-2009, 01:40 PM	#14 (permalink)
Astrocreep Flings doodoo and poopoo Join Date: Jun 2002 Location: NYC Posts: 5,742	AFAIK Pixar is not owned by Disney, Pixar is Pixar and disney distributes their films. when Disney tries to do Pixar without Pixar we get Bolt