Walt Disney to acquire Marvel for $4 bnSeptember 1st, 2009 - 5:04 am ICT by IBNS
Mumbai, Sept 1 (IBNS) In what can be touted as one of the biggest acquisitions in recent times in the media and entertainment sector, The Walt Disney Company has said that it will acquire Marvel Entertainment in a deal valued at $4 billion.
Under the terms of the agreement and based on the closing price of Disney on 28 August, 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 28 August, 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. 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,” said The Walt Disney Company CEO and president Robert A. Iger.
“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. 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,” said Marvel CEO Ike Perlmutter.
Under the deal, Disney will acquire ownership of Marvel including its more than 5,000 Marvel characters. 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, reported businessofcinema.com.
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.
- Mickey Mouse in $4 billion embrace with Spider-Man - Sep 01, 2009
- Disney captures Spider-Man's Marvel for $4 bn - Sep 01, 2009
- Walt Disney Buys Marvel For $4Billion: Reports - Sep 01, 2009
- Walt Disney, UTV to co-produce family films - May 19, 2011
- Disney sells Miramax for $660 million to Filmyard Holdings - Jul 31, 2010
- Disney Sells Miramax Studios For $660 Million To Filmyard Holdings - Jul 30, 2010
- Disney buys social-game company Playdom - Jul 28, 2010
- Disney Buys Distribution Rights Of Iron Man 3 And Avenger - Oct 20, 2010
- Chinese company to co-produce 'Iron Man 3' - Apr 17, 2012
- Hollywood misses key tech ally - Oct 08, 2011
- Novell agrees to be acquired by Attachmate Corporation for $2.2 billion - Nov 22, 2010
- Disney to distribute 'Avengers' and 'Iron Man 3' - Oct 20, 2010
- Disney Acquires Distribution Rights For 'Avengers' And 'Iron Man 3' - Oct 20, 2010
- Disney to ban junk food ads on programmes for kids - Jun 06, 2012
- UAL, Continental merger clearance makes it world's largest airline - Sep 18, 2010
Tags: business structure, character properties, company ceo, creative properties, creative skills, disney shares, disney stock, global brand, global organization, global portfolio, ibns, impressive job, marvel entertainment, merger consideration, perlmutter, renowned library, transaction value, unparalleled opportunity, value creation, walt disney company