User:Jciccone/sandbox



Marvel Comics is widely known around the world for publishing well known comics such as The Fantastic Four and Spider-man. Beyond comic books, Marvel is also known for the extremely successful film, Iron man, released in 2008. Even beyond these well known characters, Marvel has the rights to thousands of comic book characters whom are most likely not familiar to one who doesn't frequently read comic books. While not involved in the comic book business, the Walt Disney company has a plethora of known characters such as Mickey Mouse and Goofy. In 2009 Disney made plans to acquire Marvel Comics for $4 billion. Shareholders would be tabbed to earn $30 per share with the overall transaction being valued at $50 per share resulting in a lofty premium. Along with money, shareholders' received partial shares of Disney stock in exchange for their Marvel stock. The premium created a situation for a substantial amount of goodwill. Goodwill, an intangible asset, is created when an acquiring company pays more than the book value in a acquisition because of the inherent value in the brand name, relations with other companies and workforce, and other factors. In this transaction, Disney is paying a fairly large premium because of the value perceived in Marvel; be it the brand name, popular characters, or talented workforce. The vast number of characters that will now be at Disney's disposal peg potential future revenues from movies alone in the billions of dollars. Though the options seem limitless with Disney's deep pockets and vast entertainment department, a premium this high could be risky. If the inherent value Disney paid extra for doesn't pan out they could be on the hook for a nasty loss.