WALT DISNEY yesterday unveiled a surprise $4 billion (€2.8 billion) bid for Marvel Entertainment, ending a dealmaking drought in the media sector and paving the way for Iron Man, Spider-Man and Captain America to be united with Mickey Mouse and Hannah Montana.
The agreed deal is structured as a cash-and-stock offer, worth $50 a share based at Disney’s closing share price on Friday.
Shares in Marvel jumped $10.35, or 27 per cent, to a record high of $49 on the announcement. Disney’s shares were 2.65 per cent lower at $26.13 in midday trading.
The transaction would combine Marvel’s globally recognised brand and 5,000 characters with Disney’s creative skills, portfolio of entertainment properties and “a business structure that maximises the value of creative properties across multiple platforms and territories”, said Disney chief executive Bob Iger.
Disney is offering $30 per share in cash plus about 0.745 Disney shares for each Marvel share, but will adjust the amount of cash and stock if necessary at the closing of the deal, so that Disney stock makes up no less than 40 per cent of the total.
The offer underscores Disney’s reputation as one of the media groups that has best weathered the storm of plunging advertising revenues and weak consumer spending.
It also highlights the continued balance-sheet strength of some of the sector’s largest groups.
The combination, which will depend on clearance from antitrust authorities, could bring brands that have become highly successful box-office franchises to Disney’s studio.
At present, Spider-Man and Iron Man films are made by other studios.
Disney could also bring the cartoon characters to its children’s television channels and websites, and to theme parks around the world.
“Disney is the perfect home for Marvel’s fantastic library of characters, given its proven ability to expand content creation and licensing businesses,” said Ike Perlmutter, Marvel’s chief executive and largest shareholder. – (Copyright The Financial Times Limited 2009)
