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Walt Disney CEO and president Robert Iger told CNBC Monday that Disney's deal to buy Marvel Entertainment for $4 billion in cash and stock was good for both companies.
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Marvel Spider-man |
"Disney's global reach can enhance what Marvel is already doing," said Iger. "It was the perfect opportunity for Disney to buy an attractive property. It was a good price for them and us."
Under the deal, Disney will acquire ownership of 5,000 Marvel characters. Many of them, including favorites such as the Fantastic Four and the X-Men, were co-created by the comic book legend Stan Lee.
Disney said Marvel [MVL
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] shareholders will receive $30 per share in cash, plus 0.745 Disney shares for every Marvel share they own. That values each Marvel share at $50 based on Friday's closing stock prices.
Marvel shares jumped $10.09, or 26 percent, to $48.74 in trading before the market opened. Disney shares fell 70 cents, or 2.6 percent, to $26.14.
Disney [DIS
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] said the boards of both companies have approved the transaction, but it will require an antitrust review and the approval of Marvel shareholders.
Iger also told CNBC that the acquisition was not a signal of more buys ahead for Disney and he said that Disney was looking to emphasize the Marvel name rather than re-brand it in the Disney name.
Iger said that the acquisition will also help bring a younger male audience to the Disney brand.
Disney is striking the biggest media deal of the year so far—one that will unite the Incredible Hulk and Mickey Mouse—at a time when the media business is struggling to cope with spending cutbacks by both consumers and advertisers.
Marvel, however, has a stable of wildly popular characters that it has brought to the big screen in home-run films like "Iron Man." A sequel, "Iron Man 2" is due to hit the theaters next year, while "Thor," "Spider-Man 4" and the first "Avenger" movie are slated for a 2011 release.
For Disney, movies like those should help address a key area of concern among investors: How it can better reach more young males.
Indeed, Disney has long been a blockbuster brand with girls thanks to characters like "Hannah Montana," "Cinderella" and "Snow White," but has struggled to achieve the same kind of success with boys.
"(Marvel shareholders are) getting a good deal in my opinion," said Arvind Bhatia, an analyst with Sterne, Agee & Leach.
—AP and Reuters contributed to this report
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