The Walt Disney Company
) announced the closure of the acquisition of Lucasfilm Ltd. LLC.
for approximately $4.06 billion. The move was in line with the
company's core strategies, which include deploying capital
towards enhancing the portfolio of its globally recognized brands
in order to drive long-term growth.
Disney made a cash payment of approximately $2.208 billion and
issued 37,076,679 shares for the deal. Earlier, in October,
Disney stated that it will pay half of the amount in cash and
will issue 40 million shares on closure.
Alongside, Disney will gain Lucasfilm's renowned 'Star Wars'
and Indiana Jones franchises. Further, Disney will acquire the
operating businesses of the company, including live-action film
production, animation, visual effects, consumer products and
audio post production. Kathleen Kennedy, the current Co-Chairman
of Lucasfilm, will take over as the President of
Walt Disney is one of the world's largest diversified
entertainment companies and commands a formidable portfolio of
globally recognized brands, primarily its namesake brand - Walt
Disney, followed by ABC, ESPN, Pixar and Marvel Entertainment.
These renowned brands offer a strong competitive edge to the
company and bolster its well-established position in the market
against major players like
Time Warner Inc
We believe the acquisition will not only fortify Disney's
position but will also expand its world-class portfolio of
content while creating long-term opportunities by driving revenue
growth through its multiple platforms, which include theme parks,
consumer products, media networks and studio entertainment.
We maintain a long-term 'Neutral' recommendation on the stock.
Moreover, Disney currently retains a Zacks #3 Rank, which
translates into a short-term 'Hold' rating.
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