Disney is buying Marvel Entertainment for around USD4bn in the biggest media deal since the beginning of the recession. The acquisition may eventually see Disney starve its rivals of access to some of the most bankable characters and storylines in the entertainment industry.
Marvel has deals with a slew of major studios to make films featuring its characters. It has licensed X-Men to News Corp, Spiderman to Sony and The Incredible Hulk to NBC Universal. The franchises are especially appealing to studios wary of taking risks on unbranded new projects. Marvel also licenses its properties to a number of videogame companies, including Activision and Sega.
Though Disney is unlikely to pull the plug on any of the current partnerships, analysts expect the company to begin taking over the production and distribution process for new titles once its existing agreements run their course.
The acquisition values Marvel at around 30% more than the value of its stock. Disney will pay for the acquisition in a mix of cash and shares, with around 40% paid in Disney shares valued at around 0.745 shares per Marvel share.
Marvel, which claims to control more than 40% of the comic book market, is considered a relatively safe bet in a turbulent sector striving to cope with the transition to digital. The comic book firm has done well despite the recession, and the success of its first self-produced film, Iron Man, helped the firm record a 35% rise in profits for 2008.
StrategyEye's related categories: Rights Owners - Characters, Film Producers
StrategyEye's related companies: The Walt Disney Company, Marvel Entertainment
