(DIS) Another Marvelous Move at Disney

September 1st, 2009

Yesterday The Walt Disney Co (NYSE: DIS) took a nosedive of almost 3% on the news that they were going to purchase Marvel for $4 billion. Analysts believed that Disney had overpaid for the company – one just downgraded by JPM.

After all, when they picked up Pixar they paid only a 4% premium, while for Marvel they ponied up a 29% premium. Did Disney overpay for Marvel?

Absolutely not.

As Disney opened slightly positive this morning, the street may be coming to their senses. Rest assured, in a short period of time it will become apparent that Disney made another masterful move of picking up this classic character franchise.

While new character creations hit the markets and TV screens every year, some are timeless and iconic – Marvel has these. Imagine the income on just one more mega-hit Ironman movie, or another classic character from Marvel’s vaults.

Disney has been suffering from it’s inability to create new characters that have the same appeal as their older ones. Instead of beating a dead horse, they’ve been smart enough to pick up as many new characters – already beloved – as they can.

With Disney’s distribution and brand protection, they can leverage characters better than anyone. This move shows that Disney sans Eisner can be successful and, we suspect, very profitable.

View Source: InvestmentU

More on this topic (What's this?)
Another Marvelous Move at Disney (Investment U, 9/1/09)
Disney's Marvelous Bet on Superheroes (WC Power Tech Fund, 8/31/09)
Disney Gets Nod for Shanghai Theme Park (Money Morning, 11/4/09)
Disney pays well for Marvel assets (DIS, MVL) (AlphaNinja, 8/31/09)
Read more on Walt Disney Company, Marvel Enterprises at Wikinvest

Related Posts:

  1. ($VZ) Betting on a Mammoth Move for Verizon CommunicationsIn last week’s edition of Trading Tools, tween titan Aeropostale, Inc. (ARO) was analyzed after...
  2. (MVL) Marvel Bought by Disney and Stock RunsMarvel Entertainment, Inc. (MVL) shares rallied after the news of its acquisition by Walt Disney...
  3. (USO) These Three Commodities Are Set to Move – Are You Ready to Profit?by Lee Lowell, Advisory Panelist If you’re looking for what I call a “blast-off” move,...
  4. (MOVE) Move, Inc. – 2 cents easily beat the estimate of break-even earningsMove, Inc. (MOVE) recently reported sales of $54.6 million in the second quarter of 2009,...
  5. (MIR) Mirant Corporation – Consensus Estimates Move HigherMirant Corporation (MIR), the electricity provider, has surprised on estimates 3 out of the last...


Search Posts by Tag: | | Entertainment - Diversified | Services

RSS Feeds by Tag: DIS | Walt Disney Company | Entertainment - Diversified | Services |

Other Posts by: | RSS Feed for this author