Disney acquires Marvel for $4 billion

01 Sep 2009

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The world's largest media and entertainment conglomerate The Walt Disney Company, has agreed to buy Marvel Entertainment for $4 billion in a cash and stock deal that will expand its entertainment portfolio with more than 5,000 characters, including Spider-Man, Iron Man, the Hulk, the Fantastic Four, Spider-Man, X-Men and Captain America, which are widely popular among young audiences.

Under the deal, Marvel shareholders would receive $30 cash per share, plus approximately 0.745 Disney shares for each Marvel share they own. The amount of cash and stock will be adjusted at closing, so that the total value of Disney stock issued is not less than 40 per cent of the merger consideration.

The approximate combined value of $50 per Marvel share represents around 29 per cent premium to Friday's closing price of $38.65 for Marvel.

Upon closing of the deal, if necessary, the amount of cash and stock will be adjusted 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 per cent of the total merger consideration.

Disney's president and chief executive officer, Robert A. Iger said the transaction combines Marvel's strong global brand and world-renowned library of characters with Disney's creative skills, unparalleled global portfolio of entertainment properties, and a business structure that maximises the value of creative properties across multiple platforms and territories."

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

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