Disney to buy comic book powerhouse Marvel for $4B

ByABC News
August 31, 2009, 11:33 AM

LOS ANGELES -- 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 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, or a premium of 29% to Marvel's closing stock price of $38.65 on Friday.

Disney CEO Robert Iger said Marvel's comic books, TV shows, movies and video games amounted to "a treasure trove of content." Iger said the deal would bring benefits like the ones Disney got from buying Toy Story creator Pixar Animation Studios for $7.4 billion in stock in 2006.

"The acquisition of Marvel offers us a similar opportunity to advance our strategy," Iger said, and "to build a business that is stronger than the sum of its parts."

For Marvel, Iger said being in the Disney camp would mean better global distribution and better relationships with retailers to sell its products. Another storied comic book maker, DC Comics, has been under the wings of a major studio since 1969, when Warner Bros. bought the home of Superman, Batman and Wonder Woman.

Marvel Chairman Mort Handel called Disney "a perfect home for our great collection of characters."

One point of the deal is to help Disney appeal to young men who have flocked to theaters to see Marvel superheroes such as Iron Man in recent years. That contrasts with Disney's recent successes among young women with such fare as Hannah Montana and the Jonas Brothers.

Marvel television shows also already account for 20 hours per week of programming on Disney's recently rebranded, boy-focused cable network, Disney XD, and that looks likely to increase, Iger said. The shows are "right in the wheelhouse for boys," he said.