The US entertainment industry continues to reinvent itself with Disney’s proposed buyout of Marvel that will benefit both partners. Marvel will no longer have to go outside to make deals for film production. It will also benefit from Disney’s global muscle in licensing and marketing brand name products, an area where Marvel shares similar albeit smaller synergies.
Disney will add thousands of characters to its stable of characters of considerable value but will honor Marvel’s current contracts with other media outlets distributing its films. Marvel’s creative output will not only find safe harbor in digital and movie dreamland, but it will be shuttled off into theme parks and other Disney venues. WOW, all the world will be safe for more Marvel Mayhem.
But this story is to be continued. According the FT, this is the beginning of renewed merger mania.
“This deal may prove to be the first of multiple media transactions,” said Anthony DiClemente, a Barclays Capital analyst. “Credit markets have improved, so liquidity and financing is less of a worry for everybody; and big conglomerates are in need of new legs of growth.”
So POW – ER to the people. Private enterprise triumphs independently again.