Disney to acquire Lucasfilm for $4 billionLeah Zanolla | Posted: Oct 30, 2012 | Updated: Oct 30, 2012 - 9:44:09 PM
Burbank, CA and San Francisco, CA, October 30, 2012 - Continuing its strategy of delivering exceptional creative content to audiences around the world, The Walt Disney Company (NYSE: DIS) has agreed to acquire Lucasfilm Ltd. in a stock and cash transaction. Lucasfilm is 100% owned by Lucasfilm Chairman and Founder, George Lucas.
Under the terms of the agreement and based on the closing price of Disney stock on October 26, 2012, the transaction value is $4.05 billion, with Disney paying approximately half of the consideration in cash and issuing approximately 40 million shares at closing. The final consideration will be subject to customary post-closing balance sheet adjustments.
"Lucasfilm reflects the extraordinary passion, vision, and storytelling of its founder, George Lucas," said Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company. "This transaction combines a world-class portfolio of content including Star Wars, one of the greatest family entertainment franchises of all time, with Disney's unique and unparalleled creativity across multiple platforms, businesses, and markets to generate sustained growth and drive significant long-term value."
"For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," said George Lucas, Chairman and Chief Executive Officer of Lucasfilm. "It's now time for me to pass Star Wars on to a new generation of filmmakers. I've always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime. I'm confident that with Lucasfilm under the leadership of Kathleen Kennedy, and having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. Disney's reach and experience give Lucasfilm the opportunity to blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products."
Under the deal, Disney will acquire ownership of Lucasfilm, a leader in entertainment, innovation and technology, including its massively popular and "evergreen" Star Warsfranchise and its operating businesses in live action film production, consumer products, animation, visual effects, and audio post production. Disney will also acquire the substantial portfolio of cutting-edge entertainment technologies that have kept audiences enthralled for many years. Lucasfilm, headquartered in San Francisco, operates under the names Lucasfilm Ltd., LucasArts, Industrial Light & Magic, and Skywalker Sound, and the present intent is for Lucasfilm employees to remain in their current locations.
Kathleen Kennedy, current Co-Chairman of Lucasfilm, will become President of Lucasfilm, reporting to Walt Disney Studios Chairman Alan Horn. Additionally she will serve as the brand manager for Star Wars, working directly with Disney's global lines of business to build, further integrate, and maximize the value of this global franchise. Ms. Kennedy will serve as executive producer on new Star Wars feature films, with George Lucas serving as creative consultant. Star Wars Episode 7 is targeted for release in 2015, with more feature films expected to continue the Star Wars saga and grow the franchise well into the future.
The acquisition combines two highly compatible family entertainment brands, and strengthens the long-standing beneficial relationship between them that already includes successful integration of Star Wars content into Disney theme parks in Anaheim, Orlando, Paris and Tokyo.
Driven by a tremendously talented creative team, Lucasfilm's legendary Star Warsfranchise has flourished for more than 35 years, and offers a virtually limitless universe of characters and stories to drive continued feature film releases and franchise growth over the long term. Star Wars resonates with consumers around the world and creates extensive opportunities for Disney to deliver the content across its diverse portfolio of businesses including movies, television, consumer products, games and theme parks. Star Wars feature films have earned a total of $4.4 billion in global box to date, and continued global demand has made Star Wars one of the world's top product brands, and Lucasfilm a leading product licensor in the United States in 2011. The franchise provides a sustainable source of high quality, branded content with global appeal and is well suited for new business models including digital platforms, putting the acquisition in strong alignment with Disney's strategic priorities for continued long-term growth.
The Lucasfilm acquisition follows Disney's very successful acquisitions of Pixar and Marvel, which demonstrated the company's unique ability to fully develop and expand the financial potential of high quality creative content with compelling characters and storytelling through the application of innovative technology and multiplatform distribution on a truly global basis to create maximum value. Adding Lucasfilm to Disney's portfolio of world class brands significantly enhances the company's ability to serve consumers with a broad variety of the world's highest-quality content and to create additional long-term value for our shareholders.
The Boards of Directors of Disney and Lucasfilm have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, certain non-United States merger control regulations, and other customary closing conditions. The agreement has been approved by the sole shareholder of Lucasfilm.
Daily Email DIS Updates
Stay Informed With All Things Disney!
Enter your email address below to receive DIS Updates by email – including News, Blogs, Podcasts, Discounts, and Disney Updates.
Sign Up & Win A Prize!
Each month we select one of our subscribers at random and give away a prize! Prizes range from a $50 Disney Gift Card, Adventures by Disney trip for two, or a 7 day/6 night stay at Walt Disney World with dining for a family of four!
- Blog - 7 in 7: Art of Animation Resort
- VIDEO: Disney Beyond The Parks - Producing the Aulani Live Show - Visit http://www.wdwinfo.com/beyondtheparks/#hawaii to view the full DIS Unplugged show from Aulani in Hawaii. For the latest updates on our trip to Aulani and Hawaii, visit http://new.livestream.com/TheDIS/aulani Join the DIS Team as we explore Disney beyond the parks, starting with Aulani, a Disney Resort and Spa in Hawaii!
- Follow along as the DIS goes... Beyond The Parks!! - Members of the DIS Unplugged podcast team are headed to Disney's Aulani Resort, sailing on an Alaskan Disney cruise and taking an Adventures by Disney Backstage Magic trip!
- Blog - Help! A Walt Disney World Vet’s First Time at Disneyland – Part 5
- Watch our live broadcast from Disney's Aulani Resort - Tue. May 21 at 8pm EDT - Disney... Beyond The Parks! Come with us as we visit Disney's Aulani Resort, sail on an Alaskan Disney cruise, and take an Adventures By Disney trip! We're kicking off the trip with a live broadcast from Disney's Aulani Resort - Tue. May 21, 2013 8:00pm EDT.
- Livestream coverage of Star Wars Weekends events - Photos and video of Star Wars Weekends at Disney's Hollywood Studios.
- Blog - Star Wars Weekends 2013 comes to Disney’s Hollywood Studios
- Schedule of artists for the Eat to the Beat concerts - As with all Disney events, themed entertainment is part of the festivities. Visitors to the Food and Wine Festival can "Eat to the Beat!"
- Festival of the Masters dates released for November 2013 - This art festival will be held at Downtown Disney November 8-10, 2013.
- Blog - FIRST LOOK: Disney's MyMagic+ MagicBand - The DIS got a first look at Disney's new MagicBands which are part of their MyMagic+ rollout! Take a look at the photos of the MagicBand and a brief review of what we thought about wearing them...
- Blog - Summer Dooney & Bourke Release Update
- Schedule released for Star Wars Weekends - Schedule for the events during Star Wars Weekends.
- VIDEO: Disney Park Bench - Disney's Hollywood Studios - Sunset Boulevard - With our "Disney Park Bench" series, we're giving you a 5-minute break to relax with the sights and sounds of Walt Disney World.
- Free admission to Blizzard Beach for Annual Passholders today! - Today, May 16, Annual Passholders will get complimentary admission to Disney's Blizzard Beach Water Park after 2:00 pm. Complimentary refreshments and giveaways will take place at Lottawatta Lodge.
- Blog - Moving the Needle at the Orlando Theme Parks
- VIDEO: Disney Park Bench - Magic Kingdom - Crystal Palace - With our "Disney Park Bench" series, we're giving you a 5-minute break to relax with the sights and sounds of Walt Disney World.
- Adventurers Outpost meet and greet location opens at Animal Kingdom - The new indoor meet and greet location for Mickey and Minnie is now open in Discovery Island.
- November 2013 Disney World park hours added
- Details released for 2013 Epcot Food and Wine Festival - A Scotland marketplace will be added. Dates for the Party for the Senses, as well as a partial schedule for the Eat to the Beat concerts also released.
- Summer edition coming to Celebrate the Magic show - The summer edition of this show will start later this month, possibly May 24, during the 24-hour Monstrous Summer event.
- Cirque du Soleil closed for refurbishment through May 27 - The next performance of Cirque du Soleil will be May 28.
- Blog - The Contemporary Resort Hotel – Walt Disney World’s Resort Loop Hotels
- Book a trip during the Free Dining promotion! - Free dining is available for check-ins between 9/2 and 9/25/13!
- New operating hours for Splitsville at Downtown Disney - Splitsville, Downtown Disney's luxury bowling alley, has updated its hours of operation.
- VIDEO: Disney Park Bench Video - Art of Animation - Wheel Well Hotel - With our "Disney Park Bench" series, we're giving you a 5-minute break to relax with the sights and sounds of Walt Disney World.
- Typhoon Lagoon to close for refurbishment - Disney's Typhoon Lagoon water park will be closed from May 12 - May 16 for refurbishment.
- Blog - Merida becomes a Disney Princess (Includes Coronation Video)!
- Limited Time Magic: Make a Moment in Time Out of Mother's Day - Stop by Tren-D or the World of Disney Store at Downtown Disney to see the new collection of watches designed just for the occasion. Moms will receive a flower on Mother's Day when they enter the theme parks.
- VIDEO: Disney Park Bench - Coronado Springs - Marina Courtyard - With our "Disney Park Bench" series, we're giving you a 5-minute break to relax with the sights and sounds of Walt Disney World.
- Life-size rancor replica and three one-man shows coming to Star Wars Weekends - Guests will have a photo op with a replica rancor, Jabba the Hut's prized pet. There will also be three one-man shows performed by some of the celebrity guests.
- 30% off Room Only offer available for the general public! - Guests can save up to 30% when they book a Room Only reservation at select Walt Disney World resorts for most nights 8/15/13 - 9/28/13.
- Free Dining offer available for the general public! - Walt Disney World has announced a Free Dining offer for the general public!
- Raglan Road to host Summer Solstice Celebration - Master Chef Kevin Dundon has created the five-course menu for this meal, celebrating the Summer Solstice with fresh, seasonal flavors. Wines have been chosen for each course. Celebrating the Summer Solstice is a time-honored tradition and marks the official start to summer.
- Blog - Disney’s Animal Kingdom’s Split Personality
- Celebrity list updated for Star Wars Weekends - The list of celebrities appearing at Star Wars Weekends later this month has been updated.
- Truckeria Rolling Tacos food truck parked at Downtown Disney this week - Food is available from 6pm - 11pm and will include tacos, chips and salsa.
- Walt Disney World Annual Passholders can save up to 35% at select hotels - Annual passholders can save up to 35% when booking a Room Only reservation at select Walt Disney World hotels. Discount is valid for travel between 6/4/13 - 8/15/13.
- 30% off Room Only offer for Disney Visa cardholders! - Disney Visa cardholders can save up to 30% when they book a Room Only reservation at select Walt Disney World resorts for most nights 8/15/13 - 9/28/13.
- Free Dining offer announced for Disney Visa cardholders! - Disney Visa cardholders can book a Walt Disney World vacation package for 9/2/13 - 9/25/13 and receive the Disney Dining Plan for free!
- Walt Disney World golf courses offer new Players Club program - For $29 per month, members can use the practice ranges for free and take advantage of free daily golf clinics (Monday-Friday) led by PGA-certified golf instructors, as well as receive other discounts.
- Blog - May the Fourth Be with You: Intergalactic Star Wars Shopping
- Limited Time Magic: Celebrate Cinco de Mayo at Epcot - Meet the Three Caballeros, enjoy live music, marionettes, folkloric dancing and songs by Mariachi Cobre.
- Limited Time Magic: Merida Becomes an Official Disney Princess - In a royal coronation ceremony at the Magic Kingdom, Merida (from the film Brave) will be christened as an official Disney Princess.
- Blog - New Disney Dooney & Bourke Release This Summer
- List of performers for 2013 Night of Joy concerts - Disney’s Night of Joy features contemporary Christian performers. The star-studded lineup is always outstanding and features a host of Dove Award and Grammy Award winning artists.
- Blog - Help! A Walt Disney World Vet’s First Time at Disneyland – Part 4