Walt Disney to buy George Lucas's Lucasfilm for $4.05 billion

The Walt Disney Co yesterday said that it will buy "Star Wars" and ''Indiana Jones'' movie producer George Lucas's Lucasfilm Ltd and its "Star Wars" franchise for $4.05 billion in a cash and stock deal.

Lucasfilm, fully owned by George Lucas, will become part of The Walt Disney Co's global portfolio of brands that include Disney, ESPN, Pixar, Marvel and ABC.

Under the terms of the deal, Burbank, California-based Walt Disney will pay approximately half of the consideration in cash and issue approximately 40 million or 2.2 per cent of its own shares to George Lucas.

The sale will make George Lucas the second largest shareholder in Walt Disney Co after the trust of Apple Inc co-founder Steve Jobs, who sold his animation studio Pixar in 2006 to Walt Disney Co in a $7 billion cash and stock deal.

In a video posted on YouTube by Walt Disney Co, George Lucas said, ''I'm investing in Disney, that's my retirement fund.''

George Lucas, an icon in the industry, will remain a creative consultant on the new films.