Disney Acquires Marvel Entertainment

123jump.com Staff
31 Aug, 2009
New York City

Disney Acquires Marvel Entertainment as it expands its portfolio of character library. Disney stock has languished in the last five years and hopes that Marvel characters can help to draw more people to its theme parks and contribute to international sales.

[R]11:10 AM New York – Disney Acquires Marvel Entertainment as it expands its portfolio of character library. Disney stock has languished in the last five years and hopes that Marvel characters can help to draw more people to its theme parks and contribute to international sales.[/R]

Disney Acquires Marvel Entertainment

The Walt Disney Company ((DIS)) agreed to acquire Marvel Entertainment Inc in stock and cash transaction. Disney will offer per Marvel share $30 a share cash and 0.745 of its stocks in a deal that values the company at $4 billion.

The deal values Marvel based on the closing price of Disney stock on Friday at $50 a share or $4 billion.

Marvel surged 26% or $10.15 to $48.80 in the early New York trading.

Under the deal, Disney will acquire ownership of Marvel including its library of 5,000 Marvel characters such as Iron Man, Spider-Man and X-Men.

The boards of directors of both companies have approved the transaction and will regulatory approval.

Marvel has successfully lined up movie and consumer products deals in the last five years as it licensed its popular characters. However, most of its deals have focused on the U.S. and can be extended to international markets in China, Japan and Europe.

Marvel characters are generally more popular with boys and Disney movies and characters generally are better received by young girls. Disney has struggled with the weakness in advertising sales and lack major hits in several years.

Disney stock has languished in the last five years and traded between a high of $36 and a low near $15.