Disney to acquire Lucasfilm for $4 billion - KSFY News - Sioux Falls, SD News, Weather, Sports

Disney to acquire Lucasfilm for $4 billion

Posted: Updated:

The Walt Disney Company (NYSE: DIS) announced today that it has agreed to acquire Lucasfilm Ltd. in a stock and cash transaction valued at $4.05 billion.  Lucasfilm is 100 percent owned by Lucasfilm chairman and founder, George Lucas.

Under the agreement and based on the closing price of Disney stock on Oct. 26, 2012, the transaction value is $4.05 billion, with Disney paying  half of the consideration  in cash and issuing  40 million shares at closing.

"Lucasfilm reflects the extraordinary passion, vision, and storytelling of its founder, George Lucas," said Robert A. Iger, chairman and CEO 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."

Disney is the owner of ABC News and this website. Its last big purchases included a $4 billion deal for comics giant Marvel in 2009 and a $7.4 billion deal for animated movie studio Pixar in 2006.

"For the past 35 years, one of my greatest pleasures has been to see  ‘Star Wars' passed from one generation to the next," said Lucas.  "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."

Lucasfilm includes its popular ‘Star Wars' franchise 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," Disney said in a statement.

"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," according to the statement.

"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 Wars franchise 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."

  • De Smet community raises $450,000 in less than 24 hours

    De Smet community raises $450,000 in less than 24 hours

    Thursday, April 17 2014 12:07 AM EDT2014-04-17 04:07:12 GMT
    The community of De Smet has been raising funds for a new community wellness and events center for the past year. Last week, the town was till half a million dollars short and many people feared the projectMore >>
    People in De Smet came together to raise nearly half a million dollars to complete a new community center.
    More >>
  • National park visits will be more expensive this year

    National park visits will be more expensive this year

    Thursday, April 17 2014 12:01 AM EDT2014-04-17 04:01:04 GMT
    CUSTER, S.D. (AP) - Visitors will have to pay more to tour the two National Park Service caves in the Black Hills starting April 30.    The service on Wednesday announced fee increases for tours at JewelMore >>
    Park Superintendent Vidal Davila says the fees fund facility upgrades. He says the increases were discussed at public meetings.More >>
  • Wastewater lagoons bring bad odor to Brandon this spring

    Wastewater lagoons bring bad odor to Brandon this spring

    Wednesday, April 16 2014 11:48 PM EDT2014-04-17 03:48:46 GMT
    For the past two weeks, many people in Brandon have noticed a not-so-pleasant odor. The bad odor is coming from the city's waste water lagoons. The smell has been around since the lagoons were built inMore >>
    The bad odor is coming from the city's waste water lagoons. The smell has been around since the lagoons were built in the 1980s, but the city's recent growth has made the odor much more noticeable.More >>
  • STD rates spike in Minnesota

    STD rates spike in Minnesota

    Wednesday, April 16 2014 11:16 PM EDT2014-04-17 03:16:54 GMT
    ST. PAUL, Minn. (AP) - State health officials are concerned that Minnesotans aren't getting the message about safe sex and about testing and treatment for sexually transmitted diseases.    The MinnesotaMore >>
    Increases were much higher for some diseases, with syphilis up 64 percent and gonorrhea up 26 percent.More >>
  • Neighbors react to southwest Sioux Falls murder

    Neighbors react to southwest Sioux Falls murder

    Wednesday, April 16 2014 11:00 PM EDT2014-04-17 03:00:54 GMT
    Sioux falls has seen its second murder of 2014 and again, the victim is a woman in her 50's. It happened in a home on the 5600 block of Misty Glen Place  in southwest Sioux Falls. Neighbors were surprisedMore >>
    Sioux falls has seen its second murder of 2014 and again, the victim is a woman in her 50's.More >>
  • Keystone XL Pipeline remains a divisive issue

    Keystone XL Pipeline remains a divisive issue

    Wednesday, April 16 2014 10:53 PM EDT2014-04-17 02:53:07 GMT
    Former President Jimmy Carter joined a group of fellow Nobel Peace Laureates Wednesday in stating his opposition to TransCanda's Keystone XL Pipeline. If approved, it would carry oil from Canada, throughMore >>
    The potential environmental impact isn't the only issue pipeline opponents have raised. One widespread belief is it will have little to no domestic benefit. Howard says that is not true.More >>
  • New cane ball courts diversifying Huron

    New cane ball courts diversifying Huron

    Wednesday, April 16 2014 7:58 PM EDT2014-04-16 23:58:27 GMT
    Cane ball, a game similar to volleyball and soccer, is growing popular in the city of Huron, and a group of students are doing something about it. Middle schoolers, originally from Thailand and Burma,More >>
    Cane ball, a game similar to volleyball and soccer, is growing popular in the city of Huron, and a group of students are doing something about it. Middle schoolers, originally from Thailand and Burma, are so in love with the game, for their Destination Imagination (D.I.) project they petitioned to get some courts set up in town.More >>
  • Sioux Falls swimmers anticipate indoor aquatic center

    Sioux Falls swimmers anticipate indoor aquatic center

    Wednesday, April 16 2014 7:37 PM EDT2014-04-16 23:37:40 GMT
    Sioux Falls swimmers could see a new indoor pool open at Spellerberg park in the next two years.That's just east of the VA in central Sioux Falls.KSFY News spoke to people who love taking to the water.More >>
    Sioux Falls swimmers could see a new indoor pool open at Spellerberg park in the next two years.That's just east of the VA in central Sioux Falls.KSFY News spoke to people who love taking to the water.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KSFY. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service or our EEO Report.