Disney buys Marvel for $4 billion

31 August 2009

2 Comments

Posted by:Josh

The world will never be the same. Disney has just bought Marvel for US $4 billion!

This equals to around $50 per Marvel share, a 30% premium for shareholders of the comic king. It also means that the house that Mickey Mouse built now owns the rights to over 5,000 Marvel Comics characters!

“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,” said Disney head Robert A Iger. Ike Perlmutter and his team have done an impressive job of nurturing these properties and have created significant value. We are pleased to bring this talent and these great assets to Disney.”

It is not yet known how exactly this will effect Marvel, and in turn, effect any Marvel videogames. It is my guess that Disney will NOT tamper with what Marvel is and has become, but will instead allow Marvel to use the tremendous assets and infristracture now at their disposal to Marvel’s advantage. Hopefully this will only mean positive things for Marvel who will have the broadest reach they’ve ever had with Disney’s backing. I just pray that Disney won’t be getting in the way of how Marvel operates and what they produce.

Update: Marvel videogames, the facts from Bob Iger, Disney’s CEO: “On the video game front, (Marvel) have some smart licensing agreements with some of the best video game manufacturers in the business. While we have been steadily moving in the direction of video game integration, we don’t rule out the blend of licensing and self-produced and distributed video games. As these licensing deals expire we have the luxury of considering what’s best for the company and the products.”

And they better not do anything crazy. Like add Marvel characters to Kindgom Hearts! . . . Actually on second thought, that might be kind of cool!

Read the whole press release for all the legal mumbo jumbo regarding the buyout, below.

Worldwide leader in family entertainment agrees to acquire Marvel and its portfolio of over 5,000 characters

Acquisition highlights Disney’s strategic focus on quality branded content, technological innovation and international expansion to build long-term shareholder valueBuilding on its strategy of delivering quality branded content to people around the world, The Walt Disney Company (DIS) has agreed to acquire Marvel Entertainment, Inc. (MVL) in a stock and cash transaction, the companies announced today.

Under the terms of the agreement and based on the closing price of Disney on August 28, 2009, Marvel shareholders would receive a total of $30 per share in cash plus approximately 0.745 Disney shares for each Marvel share they own. At closing, the amount of cash and stock will be adjusted if necessary so that the total value of the Disney stock issued as merger consideration based on its trading value at that time is not less than 40% of the total merger consideration.Based on the closing price of Disney stock on Friday, August 28, the transaction value is $50 per Marvel share or approximately $4 billion.

“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,” said Robert A. Iger, President and Chief Executive Officer of The Walt Disney Company.

“Ike Perlmutter and his team have done an impressive job of nurturing these properties and have created significant value. We are pleased to bring this talent and these great assets to Disney.”

“We believe that adding Marvel to Disney’s unique portfolio of brands provides significant opportunities for long-term growth and value creation,” Iger said. “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.”

Under the deal, Disney will acquire ownership of Marvel including its more than 5,000 Marvel characters. Mr. Perlmutter will oversee the Marvel properties, and will work directly with Disney’s global lines of business to build and further integrate Marvel’s properties.

The Boards of Directors of Disney and Marvel have each approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, certain non-United States merger control regulations, effectiveness of a registration statement with respect to Disney shares issued in the transaction and other customary closing conditions. The agreement will require the approval of Marvel shareholders. Marvel was advised on the transaction by BofA Merrill Lynch.