In an attempt to strengthen their character driven brand throughout the world, Walt Disney Company (NYSE:DIS) has announced today that they will be acquiring comic & entertainment giant, Marvel Entertainment (NYSE:MVL) in exchange for stock and cash estimated at $4+ billion dollars. Based on the closing price of Disney on Friday (August 28th, 2009) Marvel stock holders are offered $30 per Marvel share, plus an additional 0.745 Disney share for every Marvel share they own also.  At the closing of the market, cash and stock value of Disney will adjusted to meet the agreement between the two companies. Based on the closing value of Disney on Friday, the transaction value will be $50 per Marvel share (equal to $4 billion dollars).

“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.”

“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.”

Disney will acquire ownership of massive collection of over 5,000 Marvel characters and Permutter will be in charge of overseeing the Marvel property and integrate the Marvel properties into Disney’s already established worldwide market. This may become a huge plus for Marvel as they will be backed by Disney to help Marvel gain further access into the global market through Disney’s various channels.

I am thrilled with the merger of these two entertainment giants and looking forward to what this merger can bring to both parties.
I just hope that Marvel creative control over their original properties will not be affected by Disney. “Two heads are better than one”, but there can always be “too many cooks in the kitchen”.

Source: thefool