Question
In 2009 Disney paid $4,000,000,000 US for the right to acquire Marvel Comics. The deal was valued at $50 USD per share, which included a
In 2009 Disney paid $4,000,000,000 US for the right to acquire Marvel Comics. The deal was valued at $50 USD per share, which included a (per share) premium of $11 USD. The primary drivers of the acquisition were that Disney had been unable to develop a robust pipeline of valuable characters upon which to develop blockbuster movies. As a result, Disney Studios had fallen behind its rivals. However, with its vast international distribution network and its marketing skill this lack of content appeared to have been remedied by the recent acquisition of Pixar and Lucas Films along with the planned acquisition of Marvel Comics. Specifically, the Marvel deal meant that Disney would gain control over the production of movies involving 5,000 Marvel characters ranging from Spider Man to Iron Man and The Avengers as well other well-known (and, not so well-known) superheroes. The deal was not without its challenges. Among them was that Disney had not led the industry in targeting teenage boys - an increasingly relevant demographic.
Based on the information provided in the scenario determine the following: market value (per share); takeout price (per share); and the synergy value (per share) required to make this a strategically rational decision. Note that with respect to synergy value you may assume that your only focus should be on what Disney would have gained in the acquisition of Marvel Comics and not the value of the combined corporation as the scenario lacks information regarding Disneys value. Further, you are to identify the strategic rationale(s) behind the acquisition and how it appeared that Disney planned to achieve synergy. In your response, be sure to explain any highlighted (italicized) concepts.
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