Earlier today, Walt Disney Co. announced their $4.05 billion deal to
acquire Lucasfilm Ltd. in a stock and cash transaction. The deal is split between fifty percent cash and fifty percent stock, making George Lucas a major shareholder of 40 million Disney shares. This acquisition follows the strategy that the Disney CEO, Robert Iger has implemented over the last decade by acquiring both Pixar Animation and Marvel Entertainment in 2006 and 2009 respectively. By acquiring these companies, Disney has created a broad base of entertainment to choose from, making it easier to appeal to a wider audience.
Disney plans to unveil a
new Star Wars film in 2015, while continuing the series for years to come. The acquisition of the Lucasfilm will not only give access to film rights but also merchandise licensing and various innovative technologies developed over the years including "live action film production, consumer products, animation, visual effects, and audio post production". Lucas has stated his satisfaction of the deal as it will allow Star Wars to be transitioned for future generations to enjoy.
3 comments:
I've been receiving a lot of posts from friends about this deal on facebook and whatnot, and I think this just serves as a great reminder that American entertainment is first and foremost a business as much as it is a collection of creative people and works. Cinema is one of the biggest (and sometimes costliest) enterprises that's part of modern day society, so it will be interesting to see how this deal affects Disney and the economy for years to come.
I agree with Abby in that the entertainment business is first a business. Disney is at the top as one of the most successful companies in this industry. Buying out Lucasfilm Ltd. does not surprise me, seeing as Disney has bought out other companies in the past and they do have a Star Wars themed ride at their theme parks. Disney is obviously a very experienced company and knows how to deal with business, marketing, and the economy. Integrating Lucasfilm Ltd. is a form of horizontal integration that, like Abby said, will be intriguing to follow and monitor it's future progress.
While I agree with the previous two comments that entertainment is very important in business, I am disappointed that this is major news when there is so much going on in the world right now. The Middle East turmoil, for example, would be of greater value and interest than George Lucas selling Lucasfilm Ltd. to Disney.
Disney is undeniably efficient. It has bought successful companies these past few years and has made great use of them. However, I am wary of a future when Disney monopolizes all its competitors and consumers have no other good alternatives to turn to quality entertainment. But what's the chance of that happening?
Regarding the Star Wars film coming up, I am very amused. I cannot wait to see the Star Wars fanboys explode over the continuity contradictions that will inevitably result from the future movie. I have gone on various websites and found massive spam wars of "old vs. new" Star Wars fans bashing and defending Disney's decision to make the movies. It was hilarious :).
In conclusion, I am excited by Disney's interest in the Star Wars franchise. It will make for an epic showdown of movies in 2015 with Avengers 2 vs. Star Wars 7 vs. Avatar 2 vs. a possible Justice League movie (if rumors are to be trusted). While this news is not political, it is a good breather post as more and more political junk is pilling up as this election moves toward its inevitable conclusion.
However, this quote I found makes the interesting argument that entertainment can seem political: "Politics is just like show business. You have a hell of an opening, you coast for awhile, you have a hell of a closing."
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