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how did disney's acquisition of marvel impact stock

by Mrs. Darby Herzog Published 3 years ago Updated 2 years ago
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Disney stock was $26 just before the company acquired Marvel; it is now over $100. There have been other factors involved in the increase, obviously—including ESPN and Pixar—but Marvel is a big part. Last year alone, Disney’s earnings climbed by more than 22% over the previous year, which is a huge increase for a company of Disney’s size.

Full Answer

Did you know that Disney bought Marvel for $4 billion?

Oh, heck yeah it was! It's hard to imagine a time before Marvel Cinematic Universe movies dominated the box office, but when Disney first purchased Marvel Entertainment for $4.24 billion there was no way of knowing they would double their money at the box office alone in under a decade.

How much is Marvel worth today?

Now 13 years after the takeover, Forbes estimates that the company is currently worth around $53 billion, translating to 16% of Disney’s market value. Disney and Marvel Studios – led by president Kevin Feige – have come out immensely profitable, especially after the last four years.

Was Disney’s Marvel purchase of Pixar a bargain?

Three years before their Marvel purchase Disney also bought Pixar for $7.9 billion. With the benefit of hindsight, the comparison shows just how much of a bargain the Marvel purchase was. Although Pixar films still do well, Marvel far outperforms them consistently and produces a far greater amount of content.

Is Disney the best comic-related Corporation?

And perhaps more than any other comic-related corporation, Disney has gotten some fairly good marks from comic lovers for the faithfulness of its Marvel properties and the attention to detail shown in both the movies and TV shows.

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What happened to Marvel stock when Disney bought it?

On August 31, 2009, The Walt Disney Company announced a deal to acquire Marvel Entertainment for $4 billion, with Marvel shareholders to receive $30 and approximately 0.745 Disney shares for each share of Marvel they own. The voting occurred on December 31, 2009 and the merger was approved.

How much has Disney profited from Marvel?

Twenty-four Marvel titles collectively grossed $21.9 billion in Disney's hands, making it bigger than Bond, more potent than Potter and massive compared to The Fast And The Furious.

How did Disney finance Marvel acquisition?

Disney agreed to pay a total of $30 per share in cash plus about 0.745 Disney shares for each Marvel share owned. The deal was approved by the boards of both companies. The deal is expected to gain approval from antitrust regulators, said Evan Stewart, an antitrust expert with law firm Zuckerman Spaeder LLP.

Why did Marvel sell to Disney?

There's one reason for this: Bob Iger. Iger began his tenure as Disney's CEO when Pixar was acquired. He knows his way around animation, and it was Iger who said that adding Marvel to Disney's incredible portfolio of brands would provide immense opportunities for growth and value.

Why did Disney buy Marvel and not DC?

Disney originally passed on buying Marvel because some execs thought it would 'tarnish' the brand, according to CEO Bob Iger.

What makes more money DC or Marvel?

The Marvel Cinematic Universe is the highest grossing film franchise of all time, with a worldwide box office revenue of $22.9 billion, according to Statista. The DC Extended Universe made much less — $5.78 billion — but still places 11th, and the Batman series alone is in ninth place.

Did Disney buy Marvel with cash or stock?

Disney said on Monday that it would pay cash and stock to acquire Marvel, the comic book publisher and movie studio whose library of 5,000 characters includes some of the world's best-known superheroes: Spider-Man, the X-Men, Thor, Iron Man and the Fantastic Four.

Does Disney fully own Marvel?

Considering how huge and successful the Marvel Cinematic Universe has become, it's easy to forget that parent company Disney doesn't have complete ownership of the film rights to all Marvel's characters.

Did Disney buy all of Marvel?

In August 2009, Disney bought Marvel Entertainment for $4 billion.

Does Disney own Deadpool?

The upcoming film will be the first since Disney acquired 20th Century Fox, which released Deadpool (2016) and its 2018 sequel.

Does Disney own Hulk?

Currently, there are only four movies that don't reside on Disney's streaming home - a group that consists of the Spider-Man trilogy and 2008's The Incredible Hulk. This is due to both characters' rights falling under the ownership of Sony Pictures and Universal Pictures, respectively.

Why did Disney buy Marvel and Lucasfilm?

It has ultimately acquired Lucasfilm partly because the companies have a longstanding creative relationship, but mainly to intensify its grip on consumers. In effect, the company just paid $4bn to ensure that now, when you walk into the Disney store, you just head straight on for lightsabers.

What did Disney buy Marvel for?

When the Walt Disney Co. (DIS) announced in 2009 that it had reached an agreement to buy Marvel Entertainment and most of its associated comic assets for $4 billion, a ripple of fear spread through the comic industry: Would Disney ruin all those great Marvel characters like Iron Man and The Avengers? And on the financial side of the equation, more than a few investors were concerned that the entertainment giant might have paid too much for Marvel. Could there really be that much value in the comic-book empire?

How much did Disney buy Pixar?

Only the company’s acquisition of Pixar—which the company bought in 2006 for about $8 billion —even comes close and that’s mostly thanks to home video sales. If you look at the simplest measure of value, Disney’s share price, you can see some of the power of the Marvel deal.

Is Marvel a big part of Disney?

There have been other factors involved in the increase, obviously—including ESPN and Pixar—but Marvel is a big part. Last year alone, Disney’s earnings climbed by more than 22% over the previous year, which is a huge increase for a company of Disney’s size.

Who is the CEO of Disney?

Measured by almost any standard, artistic or financial, Disney’s acquisition is arguably one of the best things that CEO Bob Iger has ever done.

Is Disney hands off with Marvel?

In large part, industry insiders say Disney has done this by being relatively hands-off with Marvel, just as it has been for the most part with Pixar . The visions that some had of Disney jamming Iron Man or Captain America into awkward partnerships with other elements of the empire have turned out to be mostly smoke.

When did Disney buy Marvel?

Disney first announced their purchase of Marvel Entertainment on Aug. 31, 2009. By that point, in a world very different from the one we live in today, there were only two MCU films released and both came out the previous year.

What was the strategy of Pixar and Marvel?

In acquiring Marvel and Pixar, the strategy was to plant the Mouse Flag in portions of entertainment culture that were already close to society's heart. The same strategy has been continued with the acquisition of Lucasfilm's Star Wars franchise and, most recently, 21st Century Fox.

How much did Disney buy Pixar?

Three years before their Marvel purchase Disney also bought Pixar for $7.9 billion. With the benefit of hindsight, the comparison shows just how much of a bargain the Marvel purchase was. Although Pixar films still do well, Marvel far outperforms them consistently and produces a far greater amount of content.

What did Nick Fury tell Tony Stark about the Avengers?

And it all started 10 years ago, when Nick Fury appeared to Tony Stark in a shadowy room and told him he wanted to talk about the Avengers Initiative. In a film whose main star was considered an extremely risky gamble, directed by someone who had never done a major Hollywood action blockbuster, one post-credits scene paved the way for a multi-billion dollar franchise whose billions keep increasing.

Is Disney+ a competitor to Netflix?

At a time when viewer dollars are already split between so many different streaming services, Disney+ is prepared to swoop in to become a top competitor. The spirit of competition seems to be exactly what Disney brings to the table, as well. Netflix's cancellation of their own popular Marvel shows was steeped in secrecy and rumors, but, given the plans for Disney+, it seems to be a safe bet that Disney wanted to elbow them out from drawing Marvel fans away.

When did Iron Man come out?

Iron Man first rocketed into theaters in May of 2008, while The Incredible Hulk came in the following month. The Incredible Hulk did not have quite the same success or acclaim Iron Man did, but the film did establish that both were part of a cohesive narrative universe.

Did Disney allow the MCU to walk before it ran?

Other cross-movie franchises quick to emulate the MCU's success rushed out films, but from the get-go the MCU developed gradually, and Disney allowed their fledgling franchise to learn to walk before it ran.

When did Disney buy Marvel?

Ike was flattered to be called by Jobs, and this helped swing him over the fence. On August 31, 2009, just a few months after Iger’s first meeting with Perlmutter, Disney announced they were buying Marvel for $4 billion.

How did Marvel and Disney influence the culture?

Increasing Marvel’s Diversity. Marvel and Disney’s influence went beyond making financial blockbusters. They could also shape culture by increasing Marvel’s diversity. In particular, conventional wisdom in the movie business held that female superheroes and black casts never sold well.

What was Disney's goal after Pixar?

After the successful purchase of Pixar, Disney set its sights on a new goal: a Disney Marvel acquisition. Many were concerned that this deal would harm both companies. Marvel was too edgy for Disney and Disney would water down Marvel. But Disney CEO Bob Iger had faith it would work out.

How long did Disney reach out to Perlmutter?

It wasn’t easy, since Ike had no direct lines of contact. Disney reached out for six months with no response.

Why was Marvel Disney's top target?

For a number of reasons (including the suspicion that Lucas would be unwilling to sell Star Wars ), Marvel was Disney’s top target. Around 2008, three years after the acquisition of Pixar, they started approaching Marvel. Just like Pixar, Marvel had its own unique complications. First, its intellectual property was scattered.

Why did Disney make financial models?

Over the coming weeks, the conversation deepened. On one front, Disney constructed financial models to think about the price they could pay. They planned out movie releases and box-office estimates and thought about the value gained in the theme parks and consumer products businesses.

When did Ross become head of Disney?

Before the role, Ross had been successful in building the Disney Channel, and Iger appointed him as head of Disney Studios in 2009 after the Marvel deal closed. Taking from the Capital Cities playbook, Iger thought that Ross could learn on the job even though he’d never managed film production before.

How much did Disney pay to buy Marvel?

Disney paid $4 billion to buy Marvel in 2009.

What is the Marvel Cinematic Universe?

The completed deal allowed Disney to pursue the series of films now known as the “Marvel Cinematic Universe.”. The franchise featured solo movies for famous characters as well as crossover appearances with multiple superheroes. The movies have been a critical and commercial success.

Is Marvel a Disney company?

“Avengers: Endgame,” the 22nd movie in the “MCU,” grossed a record sum of nearly $2.8 billion at the global box office. Marvel Entertainment operates as a Disney subsidiary. CLICK HERE TO READ MORE ON FOX BUSINESS.

Marvel acquisition helping film business

The Walt Disney Company’s (DIS) acquisition of Marvel has worked out well for Disney, earning money for its Studio Entertainment segment. The latest flick, Thor: Ragnarok, has already collected more than $600 million worldwide. Blockbuster movie releases and other license fees have driven the company’s business and created a strong brand.

Marvel acquisition helping other segments

The success of the company’s film business has spread to other business segments as well. The Consumer Products and Interactive Media and Parks & Resorts segments have also been driven by the popularity of the Marvel characters.

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