Disney gives green signal for acquisition of Marvel Entertainment for $4 billion

Good news guys! Disney has said Yes to the proposal of acquiring Marvel Entertainment. The deal is based on a stock and cash transaction as announced by the companies. As per the agreement Marvel shareholders would get for each share they own an amount of $30 plus about 0.745 Disney share for each of their Marvel share. In total Marvel will be going to Disney for an amount that is approximately equal to $4 billion.

With the acquisition, Disney will be getting their hands on the Marvel’s portfolio of 5000 characters. A few of them which you might remember include Iron Man, Spider-Man, X-Men, Captain America, Fantastic Four and Thor. Robert A.Iger, who happens to be a CEO of Disney said:

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

Ike Perlmutter, Marvel’s CEO said:

Disney is the perfect home for Marvel’s fantastic library of characters given its proven ability to expand content creation and licensing businesses. This is an unparalleled opportunity for Marvel to build upon its vibrant brand and character properties by accessing Disney’s tremendous global organization and infrastructure around the world.

It remains to be seen what will Disney do with this acquisition and what are the possible ways in which it will utilize this acquisition efficiently.