User:BartonIntermediateIII/Disney-purchase-marvel-draft

Marvel Entertainment, LLC formerly known as Marvel Enterprises, is an entertainment company that specialized in comic books and characters. Its subsidiaries include Marvel Animation Studios, Marvel Studios, and Marvel Characters. Some of the most profitable and popular movies produced through Marvel Studios include Iron Man, The Avengers, and Captain America. =Acquisition of Marvel=

In 2009, The Walt Disney Company purchased Marvel Entertainment, LLC for approximately $4 billion in cash and stock, making Marvel a wholly owned Disney subsidiary. Disney’s acquisition of Marvel allowed the company to expand its brand of characters from young girl offerings (Frozen, etc.) to include characters that young boys like such Captain Marvel and Doctor Strange, which had the potential to generate additional merchandising revenue for Disney. Although the exact financial impact of purchasing Marvel is difficult to quantify (Marvel is not required to publish its financial data), some of the impact can be seen by the substantial increase in Disney’s stock price (DIS (NYSE)) before and after Marvel acquisition. Disney (DIS (NYSE)) closed at $27.21 per share on October 2, 2009 before purchasing Marvel to currently trading at $94.56 per share on February 18, 2016. “Guardians of The Galaxy”, one of Marvel’s films after the Disney purchase, grossed $33M according to box-office reporting service boxofficemojo.com.

=Goodwill=

The $4 billion The Walt Disney Company paid for Marvel largely included Marvel’s intellectual property (Marvel’s superhero characters). The financial value of Marvel’s comic book and movie characters such as Captain America is hard to quantify. Disney also got Marvel’s employees with the acquisition of Marvel that provided creative value for Disney that’s hard to quantify. Marvel currently has 10 films in the making until 2019, which bodes well for the value Marvel is continuing to bring to Disney.

=Reference List=

http://finance.yahoo.com/q/hp?s=DIS&a=09&b=2&c=2009&d=09&e=3&f=2009&g=d