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Disney (DIS) announces it will buy Lucasfilm in a transaction valued at $4.05B. The company will...

Disney (DIS) announces it will buy Lucasfilm in a transaction valued at $4.05B. The company will pay half of the purchase price in cash and issue close to 40M shares at the closing to account for the rest.
Comments (21)
  • untrusting investor
    , contributor
    Comments (9923) | Send Message
     
    Will be interesting to see the analyst take on this acquisition. And how the DIS price reacts.
    30 Oct 2012, 04:24 PM Reply Like
  • TFCAB
    , contributor
    Comments (1942) | Send Message
     
    Great move; Disney will figure out a way to leverage that franchise. Cant speak to the price though; all i know is that these iconic franchises are hard to find and tend to become irreplaceable. Hummm...kinda reminds me of Michael Jackson buying the rights to the Beatles Catalog for $47.5 million in 1985. Now its worth $3B. The Jackson clan and all its leeches will fight over that carcass for the next 20 yrs.
    30 Oct 2012, 04:46 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    Yes- seems like $4B is a pretty good deal, considering the huge margin on licensing, the ability for DIS to sell proprietary merchandise in their theme parks, the full ability to use Star Wars (and Indiana Jones?) content in parks without restraint, and obviously the future film revenues.

     

    $4B compared to $4.1B historical box office revenues is obviously steep and I expect the analysts to mention that, but including all other residual items, I think it's a great deal.

     

    Comparing across the board to the $4B on Marvel, I think that Lucasfilm isn't quite as rich, but it's easier to work with.

     

    My guess is George Lucas was ready to retire & wanted SW in good hands. Seems like a win-win. I'd rather own all of Lucasfilm content and rights than 50% of Skype.
    30 Oct 2012, 04:42 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3670) | Send Message
     
    Star Wars 7 will gross 4 Billion in 3 months when it comes out, this buy is an absolute steal. They get, Lucasfilm, Lucasarts, skywalker ranch, industrial light and magic, and all merchendising rights. And you think 4 Billion is steep? They just aquired an stalwart part of the entire film making industry. Do you realize that nearly all films with special effects in them use Industrial Light & Magic? Indiana Jones, ect, this is astounding to me, and I am extremely excited to see where they pick up the saga in an episode 7, are they going to recase Han Solo or go farther into the future with his sons?
    30 Oct 2012, 10:26 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    I think Marvel was a better buy for $4B, but I don't disagree with what you said. I think the (lower) price of $4B was primarily due to George Lucas wanting to retire and cash in with his IP in trustworthy hands...

     

    Disney will no doubt keep Star Wars alive, but I fear they will dilute it...
    30 Oct 2012, 11:54 PM Reply Like
  • Tricky
    , contributor
    Comments (1583) | Send Message
     
    No one's asking the most important question -- does this mean the Jedi will join the Avengers initiative? ;-)
    30 Oct 2012, 04:44 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    Haha, I hope they don't dilute the brand too much with wacky cartoon spinoffs or movie ideas, but the concept could make a great video game.
    30 Oct 2012, 04:44 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5149) | Send Message
     
    The Star Wars ride at Disney World was the first non-Disney attraction to be brought there.

     

    As an investor in Disney, I like the purchase. Disney has added an iconic brand to their "empire."
    30 Oct 2012, 04:48 PM Reply Like
  • labas112
    , contributor
    Comments (304) | Send Message
     
    Can we finally get the original theatrical trilogy on blu ray then rather than lucas' garbage version. hahaha
    30 Oct 2012, 04:50 PM Reply Like
  • Hellz
    , contributor
    Comments (170) | Send Message
     
    "Mr Lucas will remain as a consultant on romantic dialogue"
    30 Oct 2012, 04:52 PM Reply Like
  • GreenEagles
    , contributor
    Comments (5) | Send Message
     
    "NOOooooooOOOOOOOOOOOO...
    30 Oct 2012, 04:57 PM Reply Like
  • Tricky
    , contributor
    Comments (1583) | Send Message
     
    LOL
    30 Oct 2012, 05:37 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3670) | Send Message
     
    This is great Lucas has decided he is too senile to make a good movie any more. I use the Episodes 1-3 as examples of how to take a flawless epic and run it 10 feet down into the ground with Jar Jar Binks.
    30 Oct 2012, 10:25 PM Reply Like
  • IncomeYield
    , contributor
    Comments (1460) | Send Message
     
    Let's see ...

     

    $4 billion could build a lot of new and original content, and employ a lot of people.
    30 Oct 2012, 06:34 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    Like John Carter!
    30 Oct 2012, 07:52 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3670) | Send Message
     
    John Carter wasn't bad, it just wasn't that good either. Not to justify its budget and delays anyway. Also their production design copied Star Wars which made it look like a rip off, even though the book predated Star Wars by a long shot.
    30 Oct 2012, 10:25 PM Reply Like
  • Destin
    , contributor
    Comments (465) | Send Message
     
    The Empire won after all.
    30 Oct 2012, 08:41 PM Reply Like
  • chopchop0
    , contributor
    Comments (3135) | Send Message
     
    I think Marvel will turn out to be the better deal than this. I think this franchise has been squeezed a lot more thus far.

     

    Lucas never intended on making the sequels (7-8-9) and given how horrendous the prequels were compared to his original epic trilogy, I can't imagine these new movies will be any better
    30 Oct 2012, 09:41 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3670) | Send Message
     
    The new movies will be better just by the fact alone, he will be out of the way.
    30 Oct 2012, 10:25 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    I don't think the prequels sucking were due to Lucas... I think it was due to the modern pressures of trying to appeal to kids.

     

    You think Disney will do that better? (as in LESS kiddie stuff?)

     

    The Marvel movies are already much more fam-friendly....

     

    Works good for shareholders, since that recipe works, but not for the movie buffs...

     

    This is an investment site though. The 3 'prequels' made a great ROI....
    30 Oct 2012, 11:57 PM Reply Like
  • sydneyrollock
    , contributor
    Comments (76) | Send Message
     
    Another Global Iconic Mega-Brand with infinite (content, merchandising, theme parks, cable and new technology applications that don't exist today) future cash flows. Nice acquisition that can benefit tremendously from Disney core competency over the next 20 years and beyond...
    31 Oct 2012, 07:05 AM Reply Like
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