I had to catch my breath over the cereal bowl this morning when Walt Disney CEO Robert Iger announced this morning that they had, in fact, purchased Marvel Entertainment Inc. for $4 Billion, making it the second largest acquisition the Mouse House has purchased since they bought PIXAR for $8 Billion! Just think, in my last post, I mentioned the slow dissolution of the industry. Now, I get to eat some of that posting--- or do I?
Stan 'The Man' Lee reportedly leapt out of his chair, thrilled at the news, stating that "From every conceivable point, this union is a perfect match".
Check out some of the great benefits and minor hurdles this deal will yield:
Sony Corp.'s Columbia Pictures is developing the next three "Spider-Man" sequels, starting with "Spider-Man 4" set for a May 2011 release. News Corp.'s 20th Century Fox has the long-term movie rights to the "X-Men," "Fantastic Four," "Silver Surfer" and "Daredevil" franchises.
Separately, Viacom Inc.'s Paramount Pictures has a five-picture for Marvel-made movies, the first of which will be "," set for release next May. Paramount said it expects to continue working with Marvel and Disney.
General Electric Co.'s Universal Studios has an attraction called Marvel Super Hero Island in Orlando, Fla., that will stay in existence as long as Universal wants to keep it there and follows the contract terms, Universal said.
Despite beginning to make its own movies, starting with "" last year, licensing remained a key driver of Marvel's $206 million in profit and $676 million in revenue last year. Iger said Disney could give Marvel broader global distribution and better relationships with retailers to sell Marvel products.
Marvel shares shot up $9.72, or 25 percent, to close at $48.37 on Monday.
Marvel plans to release two costly blockbusters, "Thor" and "The First Avenger: Captain America" in 2011. DVD sales of those films likely won't roll in until fiscal 2012.
Marvel's chief executive, Isaac "Ike" Perlmutter, will pocket a hefty payday. He snatched Marvel assets out of bankruptcy in 1998, in a deal that valued the company at around $450 million including debt, outmaneuvering investors Carl Icahn and Ronald Perelman. His 37 percent stake in Marvel is now worth about $1.5 billion.
Now, out of all of this, WHERE ARE THE COMICS?! Here's a deal that will change the face of mainstream comics, yes, but with such a monstrous deal designed to elevate the stakes of the playing field, it doesn't change the game... Who will have to up their game--- Them or Us? The Mainstream muscle definitely got a steroidal shot this morning, but the real trick now is whether or not this deal can maintain that muscle. Disney has never made no secrets about its business... Remember MIRAMAX? Remember the PIXAR dispute? These fallouts came only AFTER Disney claims big payoffs from these mergers. Hmmm... Mice don't eat spiders, do they?