@scottEweinberg
In a move sure to shock fans of the Mouse House and George Lucas, the
Walt Disney Company said Tuesday it has agreed to acquire Lucasfilm for
$4.05 billion in cash and stock. The company also announced that it is
prepping
Star Wars: Episode 7 for release in 2015.
“For the past 35 years, one of my greatest pleasures has been to see
Star Wars
passed from one generation to the next,” Lucas, the sole shareholder of
Lucasfilm, said in a press release announcing the acquisition. “It’s
now time for me to pass
Star Wars on to a new generation of filmmakers.”
With the acquisition, Disney adds one of the world’s most enduring —
and most profitable — sci-fi franchises to its ever-expanding stable.
Disney, which has grown from humble animation company to massive media
brand, successfully roped in Pixar in 2006 and
bought Marvel Entertainment in 2009
(also for a $4 billion price tag). Buying Lucasfilm, Iger said, was in
line with the Marvel acquisition: The move essentially means Disney has
cornered the market on superhero and sci-fi/fantasy films.
In a conference call with investors, Disney chairman Robert Iger
called Lucas a “true visionary” and applauded him for building a
“company at the intersection of entertainment and technology.” As part
of the deal, Disney will also take control of Industrial Light &
Magic and Skywalker Sound. But the most lucrative part of the deal has
to be the
Star Wars brand, and to that end Disney announced it would be releasing a new film from the franchise in 2015, with more to follow.
“We believe we can do great things with these amazing assets,” Iger said.
Under the agreement, Kathleen Kennedy, Steven Spielberg’s producing
partner who was named co-chair of Lucasfilm in June, will become
president of the company within Disney. Lucas has been discussing
retirement in recent months, particularly when Kennedy’s position was
announced, and even though Iger noted that Lucas will stay on as an
adviser for the new
Star Wars trilogy, he is moving forward toward retirement.
“This transaction combines a world-class portfolio of content including
Star Wars,
one of the greatest family entertainment franchises of all time, with
Disney’s unique and unparalleled creativity across multiple platforms,
businesses and markets to generate sustained growth and drive
significant long-term value,” Iger said in a statement.
The boards of both Disney and Lucasfilm have approved the
acquisition, but it is still subject to clearance under U.S. and
international business regulations.
From
FT
Last updated:
October 30, 2012 10:36 pm
By Matthew Garrahan in Los Angeles
Mickey Mouse has forged an unlikely alliance with Darth Vader after
Walt Disney agreed
a $4bn deal to acquire Lucasfilm, the company behind the Star Wars
films, and revealed plans to release a seventh movie in the series.
The deal, which will be paid with a mix of cash and shares, adds Lucasfilm to a
portfolio of brands owned by Disney,
including Pixar, Marvel and ESPN. It represents a sizeable payday for
George Lucas, the creator of the series, who owns 100 per cent of
Lucasfilm.
“For
the past 35 years, one of my greatest pleasures has been to see Star
Wars passed from one generation to the next,” said Mr Lucas, chairman
and chief executive of Lucasfilm. “It’s now time for me to pass Star
Wars on to a new generation of filmmakers.” Mr Lucas will receive
roughly $2bn in cash and the remainder in Disney stock, making him one
of the largest individual shareholders in the company.
Disney’s “reach and experience” would help Lucasfilm “blaze new
trails in film, television, interactive media, theme parks, live
entertainment, and consumer products”, he added.
The deal is the third multibillion-dollar acquisition completed by
Bob Iger in his time as Disney chief executive, having steered the
$7.4bn purchase of Pixar in 2006 and the $4bn purchase of Marvel in
2009.
“Lucasfilm fits perfectly with our strategy,” he told the Financial
Times, pointing to examples of Pixar and Marvel intellectual property
being used across Disney’s TV, consumer products and theme parks
businesses. “We know what a great fit this is and how much value can be
generated, starting relatively quickly.”
The deal will “mildly” dilute earnings in 2013 and 2014 and is
forecast to be earnings accretive in 2015 upon release of the next Star
Wars film, he added. Disney will release an additional film every one to
two years after that.
Mr Iger and Mr Lucas first discussed a possible transaction 18 months
ago but decided only recently to finalise a deal, he said. A key appeal
for Disney was Lucasfilm’s licensing and merchandise potential –
particularly in international markets.
Lucasfilm in 2012 generated consumer products revenues comparable
with the $215m generated by Marvel Entertainment before it was acquired
by Disney in 2009, said Jay Rasulo, chief financial officer. “We expect
[Lucasfilm’s consumer products] business to grow substantially.”
Disney has had a long, fruitful relationship with Lucasfilm, with
Star Wars rides available at Disney theme parks in Anaheim, Orlando,
Paris and Tokyo.
The six Star Wars films have
generated $4.4bn at the box office. Disney’s acquisition reunites
Lucasfilm with Pixar, with the animation company behind Toy Story
starting life as a unit within Lucasfilm in 1979 before being spun out
in 1986. Disney will also take ownership of technology developed by
Lucasfilm, which also owns the Industrial Light & Magic and
Skywalker Sound brands.
