Disney to acquire Marvel

The biggest story of the day, if not the month of August, is Disney Company’s announcement this morning that it has agreed to purchase Marvel Entertainment. While this will eventually have a serious impact on a whole series of entertainment properties (like several cartoon series currently running on Viacom’s Nickelodeon) the real important thing to watch is the games and entertainment sector and the contracts Marvel has with companies like Activision and THQ.

The agreement to buy Marvel Entertainment includes a stock and cash transaction, the companies announced today. Under the terms of the agreement (based on the closing price of Disney on August 28, 2009), Marvel shareholders would receive a total of $30 per share in cash plus approximately 0.745 Disney shares for each Marvel share they own. At closing, the amount of cash and stock will be adjusted if necessary so that the total value of the Disney stock issued as merger consideration based on its trading value at that time is not less than 40 percent of the total merger consideration. Based on that closing price, the transaction value is $50 per Marvel share or approximately $4 billion.

Under the deal, Disney will acquire ownership of Marvel including more than 5,000 Marvel characters. Ike Perlmutter, Marvel’s Chief Executive Officer, will oversee the Marvel properties, and will work directly with Disney’s global lines of business to build and further integrate Marvel’s properties. While the boards of both companies have approved this transaction, the deal is still subject to the normal regulatory approval and customary closing conditions - and the approval of Marvel shareholders.

And on a related note, Evan Narcisse has some interesting thoughts on the deal in his latest blog post - check it out.