Monday, January 21, 2013

Disney's Plans for Star Wars - Yes, Disney

By Mo Khanzada

On October 26, 2012, Disney forged plans to acquire Lucasfilm Ltd, from owner George Lucas, creator of the massively successful Star Wars franchise for 4.06 billion. The deal includes the Star Wars franchise which has netted 4.4 billion in profit globally. The deal was approved by the FTC on Dec 21, 2012 after the regulatory 30-day waiting period.

According to Deadline, Disney has since announced plans for three more films, one every two years in addition to a television series. The first film Episode 7, will be released in 2015. Disney has also confirmed that Michael Arndt will write the screenplay. 

Half of the consideration for the purchase was paid in cash and the other half in Disney stock. As of Friday, Jan 18, 2013,  Disney's stock price is $52.34, up $1.41 from $50 on the date of the acquisition, an increase of 2.77%.

Below is the press release.

BURBANK, Calif., December 21, 2012 – Continuing its strategy of delivering exceptional creative content to audiences around the world, Robert A. Iger, President and Chief Executive Officer of The Walt Disney Company (NYSE:DIS) announced today that Disney has completed its acquisition of Lucasfilm Ltd. LLC.
“We’re thrilled to welcome Lucasfilm to the Disney family,” said Iger. “Star Wars is one of the greatest family entertainment franchises of all time and this transaction combines that world class content with Disney’s unique and unparalleled creativity across multiple platforms, businesses, and markets, which we believe will generate growth as well as significant long-term value.”
Under the terms of the merger agreement, at closing Disney issued 37,076,679 shares and made a cash payment of $2,208,199,950. Based upon the closing price of Disney shares on December 21, 2012 at $50.00, the transaction has a total value of approximately $4.06 billion.
Lucasfilm’s assets include its massively popular Star Wars franchise, operating businesses in live action film production, consumer products, animation, visual effects, and audio post production, as well as a substantial portfolio of cutting-edge entertainment technologies. It operates under the names Lucasfilm Ltd. LLC, LucasArts, Industrial Light & Magic, and Skywalker Sound.

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