Vicarious Music & Media

Disney to acquire Marvel Entertainment for a reported $4 Billion

…could we see a possible return of Howard the Duck?

BURBANK, Calif. & NEW YORK – (via-Business Wire/Reuters)

Building on its strategy of delivering quality branded content to people around
the world, The Walt Disney Company (NYSE:DIS) has agreed to acquire Marvel
Entertainment, Inc. (NYSE:MVL) in a stock and cash transaction, the companies
announced today.

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.

Based on the closing price of Disney stock on Friday, August 28, the transaction
value is $50 per Marvel share or approximately $4 billion.

“This transaction combines Marvel`s strong global brand and world-renowned
library of characters including Iron Man, Spider-Man, X-Men, Captain America,
Fantastic Four and Thor with Disney`s creative skills, unparalleled global
portfolio of entertainment properties, and a business structure that maximizes
the value of creative properties across multiple platforms and territories,”
said Robert A. Iger, President and Chief Executive Officer of The Walt Disney
Company. “Ike Perlmutter and his team have done an impressive job of nurturing
these properties and have created significant value. We are pleased to bring
this talent and these great assets to Disney.”

“We believe that adding Marvel to Disney`s unique portfolio of brands provides
significant opportunities for long-term growth and value creation,” Iger said.

“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 Officer. “This is an unparalleled
opportunity for Marvel to build upon its vibrant brand and character properties
by accessing Disney`s tremendous global organization and infrastructure around
the world.”

Under the deal, Disney will acquire ownership of Marvel including its more than
5,000 Marvel characters. Mr. Perlmutter will oversee the Marvel properties, and
will work directly with Disney`s global lines of business to build and further
integrate Marvel`s properties.

The Boards of Directors of Disney and Marvel have each approved the transaction,
which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements
Act, certain non-United States merger control regulations, effectiveness of a
registration statement with respect to Disney shares issued in the transaction
and other customary closing conditions. The agreement will require the approval
of Marvel shareholders. Marvel was advised on the transaction by BofA Merrill
Lynch.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>