warnerleroy Posted August 31, 2009 Report Share Posted August 31, 2009 (edited) Source: AP Disney to buy comic book powerhouse Marvel for $4B By RYAN NAKASHIMA, AP Business Writer Ryan Nakashima, Ap Business Writer – 1 hr 44 mins ago 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. How do you think this will effect the Universal parks? USH's contract with Marvel expired, but USF still has Marvel Island in Islands of Adventure, which fetures some of USF's most expensive rides. Edited August 31, 2009 by 29yrswithaGApass Inserted article Quote Link to comment Share on other sites More sharing options...
MarioSonic94 Posted August 31, 2009 Report Share Posted August 31, 2009 Disney owning Marvel Comics. That can't be good. Quote Link to comment Share on other sites More sharing options...
Yoshi Posted August 31, 2009 Report Share Posted August 31, 2009 I just hope they keep Marvel out of the Disney parks (or at least every park except Hollywood Studios). I hate how Pixar is taking over Tomorrowland but having Marvel in the Magic Kingdom would be horrible. Quote Link to comment Share on other sites More sharing options...
warnerleroy Posted August 31, 2009 Author Report Share Posted August 31, 2009 In Hollywood studios that could work, but Disney is just doing this to appeal to young men, just with USF Marvel Island, a transition into theme park attractions CANNOT be good!!!!!!!! Quote Link to comment Share on other sites More sharing options...
Up_Up_and_Away Posted August 31, 2009 Report Share Posted August 31, 2009 In Hollywood studios that could work, but Disney is just doing this to appeal to young men, just with USF Marvel Island, a transition into theme park attractions CANNOT be good!!!!!!!! I can't help but think that this will have repercussions on Universal & Disney Hollywood Studios more than anything else... besides the fact that Disney can now cash in from ALL those Spiderman movie residuals... Quote Link to comment Share on other sites More sharing options...
RobertDavid Posted September 1, 2009 Report Share Posted September 1, 2009 Does anyone know how long Universal's contract with Marvel is for? I would imagine any deal to buy Marvel would require honoring existing contracts. I would also imagine Universal would not spend the kind of money it cost to make Spiderman without a contract that allows them to use it for a long time. Quote Link to comment Share on other sites More sharing options...
warnerleroy Posted September 2, 2009 Author Report Share Posted September 2, 2009 Does anyone know how long Universal's contract with Marvel is for? I would imagine any deal to buy Marvel would require honoring existing contracts. I would also imagine Universal would not spend the kind of money it cost to make Spiderman without a contract that allows them to use it for a long time. I know USH's contract to use them as walk around characters ended and hasn't been renewed, but I don't know about USF Quote Link to comment Share on other sites More sharing options...
warnerleroy Posted September 2, 2009 Author Report Share Posted September 2, 2009 http://www.bloomberg.com/apps/news?pid=206...id=a3mVWau.h28g sorry do not know how to post articles Quote Link to comment Share on other sites More sharing options...
RobertDavid Posted September 2, 2009 Report Share Posted September 2, 2009 http://www.bloomberg.com/apps/news?pid=206...id=a3mVWau.h28g sorry do not know how to post articles Very interesting article. It's a little vague about Universal's rights, however. It says that Universal's agreement with Marvel will stand for as long as Universal follows it's terms. Does this mean they can use the characters forever, or do the "terms" state an expiration date? Has anyone been able to uncover the terms of Universal's agreement with Marvel? Quote Link to comment Share on other sites More sharing options...
warnerleroy Posted September 6, 2009 Author Report Share Posted September 6, 2009 Source: Examiner.com Details of Disney-Marvel merger emerge: Disney World cannot copy Universal's Marvel rides September 2, 11:19 AM As The Walt Disney Company prepares to acquire Marvel Entertainment in a proposed $4 billion deal, Disney finds itself in the unprecedented situation of controlling Marvel's portion of the licensing fees and rights to Marvel attractions, advertising, and retail merchandising space inside the Islands of Adventure theme park at Universal Studios, Walt Disney World's major competitor. According to the Orlando Sentinel, Universal Studios will retain control of all Marvel attractions inside Islands of Adventure, including the popular Incredible Hulk roller coaster and the Amazing Adventures of Spider-Man 3-D ride. Moreover, no theme park east of the Mississippi River will be allowed to build attractions based on the Marvel characters featured in the existing Islands of Adventure rides. In other words, Walt Disney World is barred from constructing any rides that feature the Marvel characters included in existing attractions at Islands of Adventure, including but not limited to the Incredible Hulk, Spider-Man, and X-Men. Yet Disney's other parks, including Disneyland in California and the Disneyland parks in Europe, China, and Japan, are not restricted from building rides and attractions based upon the Marvel characters found at Universal's Islands of Adventure. Although Disney World will not be able to construct rides featuring certain Marvel characters, the Disney-Marvel partnership will give The Walt Disney Company a powerful new advantage over the competition. Through its acquisition of Marvel's licensing rights to merchandise and characters that are central to Islands of Adventure, Disney will become privy to Universal's sensitive financial information, the Orlando Sentinel reports. In addition, Disney will gain certain powers over the park's decision-making process as it pertains to Marvel merchandise and characters. To sweeten the deal for Disney, Universal will not be allowed to reduce its promotion of Marvel-related attractions and merchandise, even though such promotion will result in financial gain to the Walt Disney Company. The more successful Marvel's attractions and retail products become at Universal, the greater the financial gain for the Walt Disney Company. According to the Orlando Sentinel, neither Universal nor Disney will comment on the specifics of the deal. Universal stressed that Marvel characters will remain integral to Islands of Adventure, while Disney maintained that the company will honor Marvel's pre-existing contracts with Universal. Read Jason Garcia's Orlando Sentinel article in its entirety here. Quote Link to comment Share on other sites More sharing options...
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