Disney to acquire Marvel Entertainment for $4 billion

31 August 2009 – The Walt Disney Co. revealed that it has agreed to build a long term share holder value by purchasing comic book and action hero company Marvel Entertainment for about $4 billion.

Under the terms of the agreement and based on the closing price of Disney on August 28, 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.

Disney has been looking to develop some of its contents that appeal more to boys, and X-Men or Spiderman is a good choice for Disney. Meanwhile Marvel owns the right to many action-hero characters that are not yet wildly known, and Disney of course can bring all those super heroes to the silver screen.

However Marvel still holds deals with Paramount, Sony, and Fox for future movies. Marvel Chairman Morton Handel assumed that Marvel has about five movies with Paramount and will honor the current contract it has with other movie studios.

Source: Marvel, CNN


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