Disney to Buy Marvel for $4 Billion

[k5jm]

So compound the Steven Spielberg issue facing Universal and the fact that Spielberg just signed a deal to distribute movies through Disney, and now possibly losing rights to Marvel (We do not know what the terms of the sale are at this time), what is Universal going to do to stay afloat in the theme park business in Orlando? There looks to be some interesting back room dealings going on here and these are probably not the last. Maybe Disney makes a grab for the Orlando Universal theme park? Who knows, but the whole thing with Spielberg just got a lot more interesting now that the potential of revenue loss at Universal Orlando is a very real possibility.

 

[yitbos96bb]

Disney is a business why would they want to do that when they could cause Universal so many more problems by having them having to re theme everything? Steven Spielberg will be rubbing his hands now. Heads he gets his lump sum, tails Universal come back with better offer to make sure he stays now.

Because they are smart enough to know that running US out of business is entirely stupid and bad business. They are already the LEAD in Orlando and the World. US, Seaworld, etc. get visitors as well, many of whom will ALSO go to Disney, whereas Disney gets some going to the other places but MANY staying exclusively on property. And if the licensing is lucrative enough, why would they want to spend $75 million developing a ride plus staffing and maintenance when they get pure profit from universal with none of the headaches. We shall see, my guess is the next round allows Universal to keep the individual ride, get rid of the Marvel Island theme, and remove exclusivity rights on rides if they exist. Plus US in Hollywood has NO MARVEL licensing meaning that they can easily be used in the redesigned CA.

Also all the Avenger film characters are indie films... being produced by Marvel and distributed by other companies. This means they and now Disney gets a HUGE cut of the profits on this. So that is bankable income, starting with Iron Man 2, which is gonna be big.

 

[Matt@WDWR]

First this is a "movie" purchase first and foremost. Secondly, this might affect the parks eventually but I have to figure that Universal's deal with Marvel is a long term one. So, I'd say that since Spider-man is released by Sony and Iron-man by Paramount, you won't ever see those characters appear at Disney. Or at least until Universal's deal with Marvel lapses which I would assume is a very lengthy deal.

In regards to family friendly, I seem to have seen about the same amount of death in Bambi as I saw in Spider-man. The superhero movies are pretty family friendly. Maybe not "Mice loving each other forever" family friendly but close. haha

Regardless, this is a BRILLIANT move for Disney. Now they have a well known brand that boys love which they have sorely been lacking.

 

[yitbos96bb]

So compound the Steven Spielberg issue facing Universal and the fact that Spielberg just signed a deal to distribute movies through Disney, and now possibly losing rights to Marvel (We do not know what the terms of the sale are at this time), what is Universal going to do to stay afloat in the theme park business in Orlando? There looks to be some interesting back room dealings going on here and these are probably not the last. Maybe Disney makes a grab for the Orlando Universal theme park? Who knows, but the whole thing with Spielberg just got a lot more interesting now that the potential of revenue loss at Universal Orlando is a very real possibility.

US Orlando and IOA are such a small portion of the revenue for GE, I wouldn't worry. Plus... Harry Potter. Worst comes to worse, they expand Harry land... work out a DC licensing deal (as Spidey could easily be adapted to Superman) or something else. I don't think the Spielberg thing hurts the theme parks at all and only slightly hurts their Studio business. His newest films haven't all been big box office winners... its been mixed... The most profitable arm of Dreamworks was the Animation studio which wasn't included, and they still have rights to the old stuff where the real money is. Sure if he comes up with a bunch of new ideas, it could hurt them, but in the short term it really is more bad publicity than fiscally damaging.

 

[mnra]

So compound the Steven Spielberg issue facing Universal and the fact that Spielberg just signed a deal to distribute movies through Disney, and now possibly losing rights to Marvel (We do not know what the terms of the sale are at this time), what is Universal going to do to stay afloat in the theme park business in Orlando? There looks to be some interesting back room dealings going on here and these are probably not the last. Maybe Disney makes a grab for the Orlando Universal theme park? Who knows, but the whole thing with Spielberg just got a lot more interesting now that the potential of revenue loss at Universal Orlando is a very real possibility.

Maybe it is me but I would think that disney would have no interest in owning a theme park so far away from WDW.

 

[baby1disney]

Marvel comic is a HUUUUUUGE empire!!! I think Disney will do quite well with this and I also think the boy/men demographic will respond to this very favorably.

As far as not getting anything on the main Marvel characters(Spider-Man, Hulk, etc), I really don't see Disney saying "No claims on them?? Oh OK." I think that'll they'll get a precentage of those merchandise and movies and other things. That would be like Bill Gates saying that he wants in on Apple..but Apple saying that he can't cash in on their already selling products. Business wise...that would be a dumb move on Bill's part..if he was to ever accept something like that. But..then again...we are talking about a man with sooooo much money...his kids' kids' kids' kids' and maybe kids' could live off of that!!

 

[yitbos96bb]

I hate spiderman.. I wish they would have invested the money in a star wars influx...

I wish I could go on a Date with Reese Witherspoon... however, I would have a better shot.

Lucas is not selling the Star Wars brand. he is only going to license small parts. Disney just got Marvel... meaning all the Indie Film money, licensing money, comic money, animation and their archival episodes to show on Xd, meaning no fees. There is NOTHING they could do with Star Wars, unless Lucas would sell, that would equal the profit potential of this deal.

NOW, if lucas WOULD sell Star Wars then yes, I agree, they would be stupid to not do it.

 

[Matt@WDWR]

I can't wait to find out the details of this deal in regards to the marketing rights to the characters. Disney can't break the deal with Universal just because they bought Marvel. It will be quite interesting to read the details of the licensing agreement Universal has with Marvel.

 

[yitbos96bb]

Marvel comic is a HUUUUUUGE empire!!! I think Disney will do quite well with this and I also think the boy/men demographic will respond to this very favorably.

As far as not getting anything on the main Marvel characters(Spider-Man, Hulk, etc), I really don't see Disney saying "No claims on them?? Oh OK." I think that'll they'll get a precentage of those merchandise and movies and other things. That would be like Bill Gates saying that he wants in on Apple..but Apple saying that he can't cash in on their already selling products. Business wise...that would be a dumb move on Bill's part..if he was to ever accept something like that. But..then again...we are talking about a man with sooooo much money...his kids' kids' kids' kids' and maybe kids' could live off of that!!

Actually Microsoft did try to buy part of Apple but was rebuffed by the DOJ. They eventually were given non-voting shares in excahnge for $150 million and lawsuit patent settlements. They have since sold them, but had a different DOJ been in place, they might own a big chunk right now.

 

[pilferk]

http://www.msnbc.msn.com/id/32626135/ns/business-media_biz/

I wonder if that will affect the Marvel connection at Universal?

OH, SNAP!!

Yeah, it will....eventually. The question is: just how long was the Universal Orlando/marvel deal. We know the Universal Hollywood deal expired at the end of '07.

Even once it expires, I wouldn't expect the attractions to change. But what you very likely will NOT see is IOA building any NEW superhero themed attractions. And you will likely NOT see the hero's roaming the park any longer.

And I'd expect you will see BOTH (Marvel themed attractions and characters) eventually spouting up on Disney property.

Interesting....very interesting.

 

[baby1disney]

Maybe it is me but I would think that disney would have no interest in owning a theme park so far away from WDW.

US is not that far away from Disney...it's about 10-15 min drive!! People go to US all the time from Disney while staying on property and everything. I went there one time to meet my mom and her friend for lunch and it took me 15 to get there. PLus...it's fairly easy to find!!

 

[yitbos96bb]

To me, it just doesn't feel very Disney like. The majority of the characters that we have come to know and love were created with Walt's input and vision. They have a very special quality to them.

Marvel is in another world altogether and not one I would call "The Happiest Place on Earth"

I like spiderman just as much as the next guy but keep them at Universal!

Which characters are you refering too? The majority of characters and especially the ones being pushed now were not made with Walt's input. As for Vision, I'd argue that Marvel easily fits that vision.

 

[pilferk]

I would think that the lawyers already looked at ways to get out of the contract. The existing contract would be considered before you place a offer of this size. I just wonder how buying this helps them? Are there more spiderman movies comming out and since I don;t have little kids anymore. Are the characters in Marvel super popular.

Yes (there are more spiderman movies coming out..but I believe Sony has that deal inked already...still, Disney will now get the proceeds) and Yes (the marvel characters are super-popular).

Just the movie properties alone will net Disney a tidy sum, whether they're producing them short term (since there are existing deals), or not. You're talking about some of the biggest grossing movie properties of the past 10 years. Not just Spiderman, but X-men (and Wolverine), too. The sheer number of interesting IP's in marvel's portfolio is insane. Hulk, Thor, Fantastic 4, Daredevil, Captain America, Avengers...just to name a few. The stuff in development is staggering and Marvel has ridden a tough herd on studios up til now to ensure quality.

Marvel is profitable (though margin has dropped), has a solid merchandise line (and strategy) and GREAT brand penetration to young boys. It's DVD sales on movies, cartoons, etc is a HUGE part of the company's revenue. Marvel is NOT just a comics company, anymore. This is a solid pick up by Disney, from a business perspective.

For me, it's an exciting one, too. My once concern is that Disney tries to get involved in the "editorial/content" side of Marvel. Many of you mentioned that marvel does not seem to equate to "the happiest place on earth". I agree...and hopefully it stays that way. I have faith, though, that Disney will realize what has made the IP's so valuable and will leave the product (which caters so well to the male demo) alone.

 

[baby1disney]

http://toledoblade.com/apps/pbcs.dll/article?AID=/20090831/BUSINESS07/908319965

Here's what my local paper has posted. I think from the movies/characters/toys aspect of this...Disney has made a very smart move.

 

[pilferk]

When people think of a fifth park what size park are they thinking about. Magic Kingdom, Epcot or Hollywood Studios. I am not sure of all the marvel characters? Are their more then the main 3 that people have mentioned here.

There are hundreds of hero characters in Marvel's IP "domain", and easily as many villians. There's actually a "Marvel Encyclopedia" (http://www.amazon.com/Marvel-Encyclopedia-Daniel-Wallace/dp/0756623588) to cover them all (and even that leaves out many of them). Some more iconic than others, some more popular than others. But...well...suffice to say IOA only scratches the surface of what would be available.

BUT, remember...marvel also isn't a "stagnant" IP producer. There's new stuff coming from Marvel, monthly. Yes, the iconic characters are the real boon, herre...but no one knows what tomorrow's icon will be, or where it will be developed.

 

[pilferk]

Makes sense if you look at it from a wide perspective and not just a WDW perspective.

1) 5000 character library

Exactly. Plus...they get rights to anything created in the future, too.

2) Marvel films are very hot... They won't get access to Spidey, Xmen, Iron Man, Hulk, Thor and Captain America films since those have been optioned, but there are a TON of characters to produce new films.

YET. Those options do, eventually, expire. I think Spidey only has one more film left on the option (unless it was extended after 3...I don't know). X-men has 1 "tie-in" (Storm) and 1 more full team pic optioned. Hulk, Iron Man, Thor, and I think even Cap each have 1 left (the one's currently in production/pre-produciton), because they were done through indie studios with Marvel producing. Not sure if there are distribution deals in place, yet. Even so...Disney now garners the proceeds from those options when the movies are released....plus a share of merchandise, DVD sales, etc. AND a ton of stuff left out there to option or make themselves.

3) They know how to market... WELL. The problem is their brands have all appealed to Tween Girls... Nick killed them with the Boys. This levels the playing field or gives them an advantage.

Agree, 100%. This gives them a brand to actually TARGET boys with. Disney is great at marketing. This gives them an existing "in" to the demo they've not been able to grab (DisneyXD hasn't done what it was supposed to, so far) AND an easily identifiable product to market. Should be a no-brainer.

4) From what I have been reading the IOA and Universal Japan licenses are long so I doubt they will go anywhere soon. However, this is a win win. If the licenses don't have exclusivity, Disney can use them in the PARKs... BUT I REALLY HOPE its just the studios as they don't fit elsewhere... or a 5th gate more IOA style. Also, IOA either has to gut their park and their best ride, OR keep paying Disney for it. Win Win.

I keep reading various speculaiton of 20 years. But that would only leave them around 10 more. And....I don't think there is exclusivity. If there was, I can't see how the deal at USH would have elapsed/been allowed to elapse. It would seem dumb, if you're already paying for exclusivity, not to use it.

And again, you hit the nail on the head. Either way, Disney wins. They collect the cash, AND Universal is now promoting a DISNEY product. Don't think for a SECOND that the merch sold there won't prominently bare the "copyright Disney" insignia.

5) You get Stan Lee. Creative and Smart.

Sort of. Stan isn't exclusive to Marvel, and hasn't been for a LONG time. However, the 2007 "first look" deal Disney signed with Stan will likely be used as sort of a bridge. Stan does "co-own" a number of the characters with Marvel...so his involvement is necessary (but not usually hard to obtain).

Smart Business Move. The cost is my only concern... it will depend on how DIsney leverages it. Iger seems better at leveraging brands than Eisner who hurt the Muppet Brand big time (hopefully the Jason Segal movie will revive them).

Because it's a profitable, OPERATING company...on it's own, I'm not as worried about the cost. I think, without much involvement, Disney can recoup is costs with the status quo. With involvement (well, the right kind), I think this could turn into a nice boon for Disney's bottom line.

 

[blaze1599]

As a huge Marvel comic book fan and a true lover of Disney I think this could be amazing. The thought of Pixar studios working on a marvel cartoon would probably the best cartoon yet. I cannot see how the comic characters would fit in the theme parks unless you re-tool some of Hollywood studios. The future looks very bright for these properties to work some synergy and make ever more magic happen.

 

[pilferk]

US Orlando and IOA are such a small portion of the revenue for GE, I wouldn't worry. Plus... Harry Potter. Worst comes to worse, they expand Harry land... work out a DC licensing deal (as Spidey could easily be adapted to Superman) or something else.

DC currently has an exclusive licensing deal with Six Flags. I'm not sure exactly how long it runs, now...but I remember reading they just re-inked it.

 

[KimDis]

This is like Christmas morning to me. Stan Lee understands story and brings a lot to the table with his characters.

I think this is an excellent answer to Harry Potter as Marvel brings in an equally diverse demographic. Trust me, I'm not a 12 year old boy but I've seen all of the movies. And I'd bet that anyone coming down to Orlando to see Harry at Universal would be more than tempted by an X-Men or Iron Man ride at the Studios. Right now, I don't know if you could argue that DHS is a full day park without the shows. A skillfull incorporation of Marvel at the studios would bring even more life to that park and extend it's appeal.

The possibilities of this deal alone have sold me on renewing my annual pass next year.

That said I think Disney has to be very careful to find appropriate ways to protect all of their brands and must take a hard look and where it's appropriate and NOT appropriate to blur the lines. Because if we see Iron Man's Energy Adventure at EPCOT or if Spidey comes into the Magic Kingdom and takes Tinks place in Wishes... all bets are off for lots of loyal fans.

 

[mshoo1]

The Orlando Sentinel now has an article on their home page that addresses some of the issues discussed in this thread. Here is the official statement from Universal:

"Marvel Super Hero Island at Universal's Islands of Adventure and the Marvel characters are a beloved and important part of the Universal Orlando experience. They will remain so," said Tom Schroder, a Universal spokesman. "Our guests are going to get to meet Spider-Man and all our other Marvel characters. We believe our agreement with Marvel stands and that the Disney/Marvel deal will have no impact on our guest experience."

According to the Sentinel, the agreement between Marvel and Universal gives the park exclusive U.S. rights east of the Mississippi to theme park attractions based on certain Marvel characters. The article states that:

"Marvel also has various deals with the two-park Universal Orlando. The agreements governing two of Universal's hugely popular rides, The Amazing Adventures of Spider-Man and The Incredible Hulk roller coaster, appear to be virtually perpetual deals. According to Universal's filings with the U.S. Securities and Exchange Commission, Universal Orlando retains American rights east of the Mississippi River for as long as its attractions are in operation."