Disney Buying Marvel For $4 Billion In Cash and Stock

Posted Aug 31, 2009

The Walt Disney Company (NYSE:DIS) has made an agreement to buy out Marvel Entertainment Inc. (NYSE:MVL) today.  The transaction will take place in cash and stock.

As part of the agreement, the transaction will be based on the closing price of Disney stock as of August 28, 2009.  Marvel shareholders would receive $30 per share in cash and 0.745 Disney shares for each Marvel share that they own.

“This transaction combines Marvel’s strong global brand and world-renowned library of characters including Iron Man, Spider-Man, X-Men, Captain America, Fantastic Four and Thor with Disney’s creative skills, unparalleled global portfolio of entertainment properties, and a business structure that maximizes the value of creative properties across multiple platforms and territories,” stated The Walt Disney Company CEO and President Robert A. Iger in a press release. “Ike Perlmutter and his team have done an impressive job of nurturing these properties and have created significant value. We are pleased to bring this talent and these great assets to Disney.”

Disney will acquire the ownership of Marvel and 5,000 of the characters belonging to the franchise.  Perlmutter will continue to oversee the Marvel properties.

The transaction is subject to the clearance under the Hart-Scott-Rodino Antitrust Improvements Act, non-U.S. merger control regulations, etc.  Marvel was advised by BofA Merrill Lynch.