Disney Buys Lucasfilm for $4.05 Billion

[TinkerbellT421]

1) I guess I better watch the Star Wars movies...

2) why not have both? Avatar land and a Star Wars land? I think it would be a much needed boost for Animal Kingdom.

3) I'm sorta prematurely excited about the possibilities this provides

[Quadstriker]

Thanks for the anniversary present, Disney. Ya'll are still cool.

[readytogo2]

not a star wars fan but glad to see there may be something new in the parks

[magicofdisney]

The possibilities are nearly limitless. I'm kind of wondering why it took so long (unless Lucas has been holding out). What a fantastic merge!

[TinkerbellT421]

And I forgot to mention this will be a perfect fit in Hollywood studios.

[brownie]

I hope this means an expansion of Star Wars in the parks. I would love to go to the Mos Eisley Cantina.

[Quadstriker]

In honor of the film opening this week...


George Lucas in 1999: "I'm gonna wreck it!"

Disney in 2012: "I can fix it!"

[Figment!]

Here's the full press release:

DISNEY TO ACQUIRE LUCASFILM LTD.

Global leader in high-quality family entertainment agrees to acquire world-renowned Lucasfilm Ltd, including legendary STAR WARS franchise.

Acquisition continues Disney's strategic focus on creating and monetizing the world's best branded content, innovative technology and global growth to drive long-term shareholder value.

Lucasfilm to join company's global portfolio of world class brands including Disney, ESPN, Pixar, Marvel and ABC.

STAR WARS: EPISODE 7 feature film targeted for release in 2015.

Press Release
The Walt Disney Company
October 30, 2012


Burbank, CA and San Francisco, CA – Continuing its strategy of delivering exceptional creative content to audiences around the world, The Walt Disney Company (NYSE: DIS) has agreed to acquire Lucasfilm Ltd. in a stock and cash transaction. Lucasfilm is 100% owned by Lucasfilm Chairman and Founder, George Lucas.

Under the terms of the agreement and based on the closing price of Disney stock on October 26, 2012, the transaction value is $4.05 billion, with Disney paying approximately half of the consideration in cash and issuing approximately 40 million shares at closing. The final consideration will be subject to customary post-closing balance sheet adjustments.

"Lucasfilm reflects the extraordinary passion, vision, and storytelling of its founder, George Lucas," said Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company. "This transaction combines a world-class portfolio of content including Star Wars, one of the greatest family entertainment franchises of all time, with Disney's unique and unparalleled creativity across multiple platforms, businesses, and markets to generate sustained growth and drive significant long-term value."

"For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," said George Lucas, Chairman and Chief Executive Officer of Lucasfilm. "It's now time for me to pass Star Wars on to a new generation of filmmakers. I've always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime. I'm confident that with Lucasfilm under the leadership of Kathleen Kennedy, and having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. Disney's reach and experience give Lucasfilm the opportunity to blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products."

Under the deal, Disney will acquire ownership of Lucasfilm, a leader in entertainment, innovation and technology, including its massively popular and "evergreen" Star Wars franchise and its operating businesses in live action film production, consumer products, animation, visual effects, and audio post production. Disney will also acquire the substantial portfolio of cutting-edge entertainment technologies that have kept audiences enthralled for many years. Lucasfilm, headquartered in San Francisco, operates under the names Lucasfilm Ltd., LucasArts, Industrial Light & Magic, and Skywalker Sound, and the present intent is for Lucasfilm employees to remain in their current locations.

Kathleen Kennedy, current Co-Chairman of Lucasfilm, will become President of Lucasfilm, reporting to Walt Disney Studios Chairman Alan Horn. Additionally she will serve as the brand manager for Star Wars, working directly with Disney's global lines of business to build, further integrate, and maximize the value of this global franchise. Ms. Kennedy will serve as executive producer on new Star Wars feature films, with George Lucas serving as creative consultant. Star Wars Episode 7 is targeted for release in 2015, with more feature films expected to continue the Star Wars saga and grow the franchise well into the future.

The acquisition combines two highly compatible family entertainment brands, and strengthens the long-standing beneficial relationship between them that already includes successful integration of Star Wars content into Disney theme parks in Anaheim, Orlando, Paris and Tokyo.

Driven by a tremendously talented creative team, Lucasfilm's legendary Star Wars franchise has flourished for more than 35 years, and offers a virtually limitless universe of characters and stories to drive continued feature film releases and franchise growth over the long term. Star Wars resonates with consumers around the world and creates extensive opportunities for Disney to deliver the content across its diverse portfolio of businesses including movies, television, consumer products, games and theme parks. Star Wars feature films have earned a total of $4.4 billion in global box to date, and continued global demand has made Star Wars one of the world's top product brands, and Lucasfilm a leading product licensor in the United States in 2011. The franchise provides a sustainable source of high quality, branded content with global appeal and is well suited for new business models including digital platforms, putting the acquisition in strong alignment with Disney's strategic priorities for continued long-term growth.

The Lucasfilm acquisition follows Disney's very successful acquisitions of Pixar and Marvel, which demonstrated the company's unique ability to fully develop and expand the financial potential of high quality creative content with compelling characters and storytelling through the application of innovative technology and multiplatform distribution on a truly global basis to create maximum value. Adding Lucasfilm to Disney's portfolio of world class brands significantly enhances the company's ability to serve consumers with a broad variety of the world's highest-quality content and to create additional long-term value for our shareholders.

The Boards of Directors of Disney and Lucasfilm have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, certain non-United States merger control regulations, and other customary closing conditions. The agreement has been approved by the sole shareholder of Lucasfilm.

Note: Additional information and comments from Robert A. Iger, chairman and CEO, The Walt Disney Company, and Jay Rasulo, senior executive vice president and CFO, The Walt Disney Company, regarding Disney's acquisition of Lucasfilm, are attached.

About The Walt Disney Company

The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, interactive media, and consumer products. Disney is a Dow 30 company with revenues of over $40 billion in its Fiscal Year 2011.

About Lucasfilm Ltd.

Founded by George Lucas in 1971, Lucasfilm is a privately held, fully-integrated entertainment company. In addition to its motion-picture and television production operations, the company's global activities include Industrial Light & Magic and Skywalker Sound, serving the digital needs of the entertainment industry for visual-effects and audio post-production; LucasArts, a leading developer and publisher of interactive entertainment software worldwide; Lucas Licensing, which manages the global merchandising activities for Lucasfilm's entertainment properties; Lucasfilm Animation; and Lucas Online creates Internet-based content for Lucasfilm's entertainment properties and businesses. Additionally, Lucasfilm Singapore, produces digital animated content for film and television, as well as visual effects for feature films and multi-platform games. Lucasfilm Ltd. is headquartered in San Francisco, California.

[dnickels]

Don't think I saw it specifically mentioned here but on CNBC I thought I heard them say to expect movie #7 in 2015. That may have been speculation rather than an official announcement but I'm pretty sure I heard it that way.

[BriarRose0708]

This is great news. While I'm not as avid a Star Wars fan as many, I really enjoy the "classic" movies and loved the new version of Star Tours. I think there are so many more opportunities here than with Pandora/Avatar land. It will be very exciting to see where this goes.

[Dopey's Girl]

Just talked to a CM at American Adventure in Epcot. He said that everyone is really excited about this.

[dpamac]

I'll be willing to bet a revamping of the Studios is coming. I don't remember who said it earlier but they are right: Disney would need to put the attention to detail into this that Uni put into Hogsmeade. I want to walk through and be transported. I want Stormtroopers to shoot at me and miss because they have terrible aim. I want to walk into the Mos Eisley cantina, sit down at a booth with Greedo and shoot first.

[1DisneyNut]

I grumble at a lot of the stuff Disney does here lately but I have to admit, purchasing Lucasfilm and getting Star Wars and Indiana Jones has me fired up. I can't wait to see what new attractions and perhaps entire land comes to WDW.

I personally think avatar sucked and have never been able to make it past the first 15 minutes....really about the first 10, the additional 5 of the 15 I am actually already distracted and reading something, surfing the program guide looking for something else to watch or doing something on my phone. Hopefully the avatar land idea gets canned and Star Wars Land or perhaps a Lucas Land with both Star Wars and Indiana Jones and whatever else they can dream up goes in. That would be awesome!

[BrowncatP]

Star Wars land PLEASE!! I am ready to book my vacation to see the new land now!

[Roger's #1 Fan]

Holy Lightsabers! This is awesome.

Wonder why they didn't save this for the What's New, What's Next event?

Maybe they are getting this part out of the way so they can announce the DHS redo with Star Wars Land. The artist who did the rock work for Carsland could probably do a bang up job on Mos Eisley.....

The force is with DISNEY.

[Disney Hungarian]

I am very pleased with Disney's purchase today. This will have an affect on cash flow for Disney. I do not expect any new rides or lands very soon (within 2 years.) Disney has never had any problems acquiring any rights to use Lucas films properties in the parks before the purchase. My guess is that if anything is added, it will be about the time of the next Star Wars movie in 2015 (I do hope I am wrong and it is sooner.)

[gerald72]

Will there be a Howard the DuckLand?

[GBBT]

Will there be a Howard the DuckLand?

I hope not...that's a BAD movie.....

[Imagineer1981]

such a better merger than with Avatar. This is one of the more exciting announcements in a really, really long time

[KylesMom]

Heard the news on the way home from work while worrying about all my ICOT friends trying to get home. OMG!

WOW - and yes - and WOW. Ditch AVATAR, and hitch up Star Wars. Haven't had a chance to talk to Kyle tonight, but I bet he will be freaking out in the morning when I tell him that his two favorite things have finally joined "Forces"! Sorry, but I LOVE this franchise buy!