Disney to acquire Marvel for $4 billion

[GothMickey]

They make cutbacks to the park, Disney cuts jobs, and they cut hours....yet they can spend billions on buying Spiderman????

No, I think Spiderman and I think Universal. I will never see them as Disney.

That money could have been spent on so many other projects around the parks. Bad decision, Disney...bad, bad!!

But, remember, the P&R budget is different and separate from M&A. This is a great decision.

[NJGIRL]

I don't think Disney needs to strongarm US in any way. US bought the rights and those rights included payments to Marvel for using those characters. I'm sure it was not a one-time payment, and there are montly/annual residuals to be paid. So the money for the licenses held "in perpetuity" will now go to the Walt Disney Company, a direct competitor of US. There's no strongarming necessary, US is now in a tight spot. I would expect to see new agreements drawn up, or US give up those licenses.

If you read any of the reliable news stories out there they are all saying the same thing. These companies (they were not stupid when they made these deals either) have long term contracts that Disney will have to honor. Disney can not push them out just because they feel like it. They are also saying that Disney paid over top dollar for Marvel. Disney's stock dropped when the announcement was made. If any of these companies decide to bale out it will be because their companies will benefit from doing so (maybe by a pay out) not because Disney says so. They are also saying that this could be a good business decision by Disney but that won't be seen for many years.

[Toad_Passenger]

If you read any of the reliable news stories out there they are all saying the same thing. These companies (they were not stupid when they made these deals either) have long term contracts that Disney will have to honor. Disney can not push them out just because they feel like it. They are also saying that Disney paid over top dollar for Marvel. Disney's stock dropped when the announcement was made. If any of these companies decide to bale out it will be because their companies will benefit from doing so (maybe by a pay out) not because Disney says so. They are also saying that this could be a good business decision by Disney but that won't be seen for many years.

I agree with you 100% that Disney will have to honor those contracts. But if you are Universal Studios you have to wonder why one would stay in a contract that NOW includes paying your competition?

I'm not saying Disney will end those contracts, I'm saying US will want to end the contract because the money is now going to be put into Mickey's pockets.

[NJGIRL]

I'm not saying Disney will end those contracts, I'm saying US will want to end the contract because the money is now going to be put into Mickey's pockets.

Wheather Universal is paying Marvel or Disney..I don't think that matters to them because it is profitable to Universal at this point. I also think that Universal knows (as well as visitors to Disney parks)that Disney isn't
going to turn around and put that money into attractions at the Disney parks in order to put Universal out of business.

[GothMickey]

Nice article on Sun Sentinel's website about this deal.

Universal can keep its Marvel attractions but may soon have Disney looking over its shoulder

While the Walt Disney Co.'s $4 billion acquisition of Marvel Entertainment Inc. does not pose a near-term threat to the future of Universal Orlando's popular Marvel-themed attractions, it could still create headaches for the resort.

In taking over Marvel, Disney will inherit the theme-park licensing contract Marvel has with Universal — along with all of the rights contained within it. As a result, Disney is poised to gain veto power over some of Universal's marketing materials, audit rights over some of its finances, and more.

That's on top of the annual licensing fees and merchandise royalties that Universal pays to Marvel — but, soon, to Disney.

"It's an unusual situation. Awkward is a good word for it," said Harold Vogel, a stock analyst and author of Entertainment Industry Economics. "They're obviously competitors, and there's an interest in keeping aspects of these deals private. And now Disney will have some access to it."

Universal declined to discuss fallout from the Disney-Marvel pact Tuesday, beyond reiterating comments made Monday that both Marvel Super Hero Island at Islands of Adventure and Marvel characters such as Spider-Man and the Incredible Hulk will remain "an important part" of the resort.

But a person familiar with Universal's licensing agreements said executives at the resort think they will be able to "work through the business issues involved" with Disney and Marvel, given Universal's experience with licensing contracts. Universal has multiple licensing deals involving its theme parks, for characters ranging from The Cat in the Hat and Popeye to Homer Simpson and Harry Potter.

Disney also declined to discuss the issue. A spokesman instead deferred to comments Disney Co. Chief Executive Officer Bob Iger made Monday on CNBC that Disney intends to honor Marvel's existing theme-park contracts.

From a guest perspective, the Disney-Marvel deal will have little, if any, near-term effect on Universal's Marvel-based attractions, which include The Amazing Adventures of Spider-Man dark ride, The Incredible Hulk roller coaster, Dr. Doom's Fearfall, and Storm Force Accelatron.

The contract allows Universal to continue using the Marvel trademarks for as long as the attractions are in operation. It also ensures that no other theme park east of the Mississippi River — including Walt Disney World — can develop attractions based on the same characters.

But the deal stands to give Disney some control over Universal through the Marvel licensing pact.

For example, under the contract, Marvel has the right to approve marketing materials featuring any of its trademarks. Marvel can also approve or reject the use of any non-Marvel characters within Marvel Super Hero Island.

The terms also prevent Universal from scaling back promotion of Marvel characters, even after they become part of the Disney empire. One provision requires Universal to devote a certain percentage of its annual advertising spending to promoting Marvel characters; another states that Universal must maintain at least 10,000 square feet of retail space for selling Marvel merchandise.

Marvel — and, soon, its new owner, Disney — even has "reasonable audit and review rights" to assure that Universal is paying the proper amount in annual merchandise royalties.

Still, as awkward as the situation may be, several analysts said Universal is unlikely to face any significant intrusion from Disney.

"There's no reason why both sides can't live with it at least for the foreseeable future," Vogel said.

Disney, meanwhile, could face some tricky issues of its own. For instance, while Disney could opt to incorporate Marvel characters used at Universal Orlando into attractions at Disneyland in Anaheim, Calif., it would have to ensure that any national advertising did not imply that those characters existed at all Disney parks.

That's because Universal's licensing pact requires any theme-park company that uses similar Marvel characters beyond the East Coast but has parks on both coasts — such as Disney — to "make abundantly clear that the character only appears in the parks west of the Mississippi."

[NJGIRL]

Thanks for posting one of the news articles for everyone to read.

[TheVBs]

Very interesting article! Thank you!

[Tekneek]

Marvel characters showing up in any current Disney parks would be a real "jump the shark" moment that they will never be able to erase.

[GothMickey]

Marvel characters showing up in any current Disney parks would be a real "jump the shark" moment that they will never be able to erase.

Why? They are now part of the Disney family, just like Pixar and Power Rangers, and Club Penquin. No one screamed and yelled heresy when Club Penquin M&G's were announced, so why do people now have issues with Marvel characters?

[Mousemates]

Marvel characters showing up in any current Disney parks would be a real "jump the shark" moment that they will never be able to erase.

I didn't have a clue as to the "jump the shark" thot and figured it might not be clear to others...so I offer the following internet based definition of the term:

jump the shark- a term to describe a moment when something that was once great has reached a point where it will now decline in quality and popularity. Origin of this phrase comes from a Happy Days episode where the Fonz jumped a shark on waterskis. Thus was labeled the lowest point of the show.

Having defined the term, let me say that I am not sure that the appearance of Marvel heros would be a "jump the shark" moment....if they show up at Disney Studios...I actually think that is the one place where they work. afterall as others have pointed out...its already full of non-disney characters/shows/etc (Indiana Jones, Twilight Zone, Aerosmith, Star Wars, etc).

[GothMickey]

Thanks for posting one of the news articles for everyone to read.

Very interesting article! Thank you!

No problem at all. I think it sums things up nicely. And, despite Universal still being able to use Marvel, Disney and cause migranes for Universal. Disney will have control on Universal's marketing of the characters. I bet this causes Universal to think twice about using Marvel in the future. Wait until 2011-2012 timeframe, after Harry Potter is open and is the anchor of IOA.

[GothMickey]

I didn't have a clue as to the "jump the shark" thot and figured it might not be clear to others...so I offer the following internet based definition of the term:



Having defined the term, let me say that I am not sure that the appearance of Marvel heros would be a "jump the shark" moment....if they show up at Disney Studios...I actually think that is the one place where they work. afterall as others have pointed out...its already full of non-disney characters/shows/etc (Indiana Jones, Twilight Zone, Aerosmith, Star Wars, etc).

They can replace LMA with a Marvel superhero stunt show, instant success right there.

[BMan62]

They can replace LMA with a Marvel superhero stunt show, instant success right there.

Sounds REALLY good to me. LMA was a 'one and done' for us!

[GothMickey]

Sounds REALLY good to me. LMA was a 'one and done' for us!

Same for me. In fact, use that part of the park, including Streets of America, and make is MARVEL Studios, or MARVEL Universe. Just make it Marvel themed.

[Mousemates]

They can replace LMA with a Marvel superhero stunt show, instant success right there.

[Tekneek]

Why? They are now part of the Disney family, just like Pixar and Power Rangers, and Club Penquin. No one screamed and yelled heresy when Club Penquin M&G's were announced, so why do people now have issues with Marvel characters?

Maybe we run in different circles, then. I've been around the complaints out in the real world, I'm unaware whether complaints are on the Net (or where they might be). I'll take this opportunity to more re-define my position and limit it specifically to the Magic Kingdom-ish parks.

I'm obviously no longer the demographic that Disney wants to appeal to. What I have liked about the Disney company had everything to do with internal innovations, and little or nothing to do with what they bought. I don't hate big media conglomerates, rather I find them to be mostly boring and striving only to manage assets (rather than push a new frontier).

[Mad About Mickey]

But wouldn't that be sooooo cool? I could see Spidey hanging from the side of the Castle!

Just picture this, on the main castle stage of course. After Spidey saves Insert Princess of your choice from Marvel and/or Disney villan du jour he can hang upside down dangling from the spires of the remodeled X Mansion (formerly Cinderella's Castle ) . Insert Princess of your choice can pull back his mask and replicate the famous Spidey kiss. Heck make it Hannah Montana and you can even capture the tweeny bopper market .

[JRock0114]

What Are you talking about ?
I do not recall the incredibles getting their powers from a space ship journey.
I don't remember a story line about super hero's being 'banned' and the superdudes going into forced "retirement".
I see no specific reed richards character- Elastagirl has similar powers, but so does stretch armstrong. But none of the incredibles is some scientific genious.
I do not see any storyline that the incredibles stole...other than good guys vs. bad.
Am I missing something ?
What were you reffering to ?

Please tell me you are joking. I really hope that you are. Surly you can't make that statement.....and not be joking. Do you know anything about Fantastic 4 OR the Incredibles?

Don't get me wrong......I love the Incredibles Movie....but it was a straight rip-off of the Fantastic 4. Period. Even people within Pixar have admitted that the Incredibles was a "valentine's day card" to "comic book heroes and stories that we love so much".

Let's see.......a "Family" of Super Heroes (the core number of them is 4)........One has stretching ability (Mr. Fantastic),.....one has super strength (The Thing),......one has 2 types of powers: turn invisible & create force fields (exact 2 abilities of Sue Richards),....and even the baby shows that it has the ability to turn into pure fire (Human Torch).

.......uh no..........I can't see ANY similarities at all.

Are you kidding me?

Hey I'm a Disney Fan Boy like anyone else on here, but I will at least call a Spade a Spade.

The Incredibles was a direct rip from Marvel. Deal with it.

[JRock0114]

The world of Disney is full of characters that Walt Disney (and/or his apprentices and successors did not create) besides the "public realm" fairy tale characters, such as Cinderella, Sleeping Beauty, Snow white, Pinnochio, etc.

Such as:
Peter Pan (J. M. Barrie)
Alice in Wonderland & friends (Lewis Carroll)
Mr. Toad & friends (Wind in the Willows)(Kenneth Grahame)
Winnie the Pooh & friends (A. A. Milne)
Brer' Rabbit & Friends (Joel Chandler Harris)
Muppets & friends (Jim Henson)
Luke Skywalker & friends & enemies (George Lucas)
Indiana Jones (Steven Spielberg)
Swiss Family Robinson (Johann D. Wyss)
Tom Sawyer & Friends (Mark Twain)
Lion Witch & Wardrobe characters (C.S. Lewis)
Tarzan (Edgar Rice Burroughs)
101 Dalmations (Dodie Smith)
Mary Poppins (P. L. Travers)
Hunchback of Notre Dame (Victor Hugo)
Rescuers & friends (Margery Sharp)
Mowgli & friends (Rudyard Kipling)
Captain Nemo (20k under the sea) (Jules Verne)

and even . . . . Dumbo (Helen Aberson), who many people consider a classic Disney character.

And the list goes on and on. I'm sure I've left many others out.

I'll bet that some (even many) people felt that many of those characters didn't "fit" with the other Disney characters at the time, but most folks have easily come to accept them now as part of the Disney Family. Over time, so will the marvel characters, just as Pooh, Tarzan and Mary Poppins have become part of Disney.

Walt Disney & his company acquired the rights to those characters in the past, and by buying Marvel, the company has now acquired the rights to many other characters, and all the revenue that goes with with. It's really not anything new being done here, it's just on a larger scale than ever before. I can't fault Disney for buying a company that's sure to make them lots more money. Hopefully the theme parks will also benefit in one way or another in the long term. I don't see any downside for Disney in this move.

This is a flat-out great post.

Can you say.....ZING?!

[maxrebo77]

i just read about this in a newsletter today. I have not read all the posts so I am sorry if I ask a question that has already been answered. It seems that Universal had been having trouble getting their new coaster finished, plus they are doing the huge Harry Potter attraction. Is this just a money thing?