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Disney Completes Marvel Buyout

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By: Zacks Equity Research
January 04, 2010 | Comment(s): 0
Recommended this article (6)
DIS | MVL

Walt Disney Co. (DIS - Analyst Report) recently announced the completion of its acquisition of Marvel Entertainment, Inc. (MVL).
 
Walt Disney acquired Marvel Entertainment in a cash and stock deal for approximately $4.24 billion. Marvel shareholders received in aggregate $30 per share in cash and approximately 0.745 Disney stock for each Marvel stock they owned. This values Marvel Entertainment shares at $54.03 each.
 
Walt Disney, thus, acquires Marvel Entertainment’s strong global brand and world-renowned library of more than 5,000 characters, which include iconic characters such as Iron Man, Spider-Man, X-Men, The Incredible Hulk, The First Avenger: Captain America, Fantastic Four and Thor. The deal also provides Disney exclusive control over Marvel Entertainment’s licensing, publishing, and film production divisions.
 
Walt Disney has long been dominated by female characters such as ‘Hannah Montana,’ ’Cinderella’ and ‘Snow White,’ and has been struggling to achieve similar success with male characters. The acquisition of Marvel provides Disney with brands and characters targeting young males.
 
The purchase of Marvel Entertainment is considered to be Disney's largest acquisition since 2006, when it had purchased Pixar Animation Studios for $7.4 billion.
 
Walt Disney is a leading diversified media and family entertainment enterprise with five business segments – media networks, parks and resorts, studio entertainment, interactive media and consumer products.
 
In a separate story, Disney will acquire 10% stake in POW! Entertainment Inc., a company led by Spider-Man co-creator Stan Lee, for $2.5 million.

Read the full analyst report on DIS

Read the full analyst report on MVL

 

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