The Walt Disney Company (NYSE:DIS) acquisition of Marvel entertainment, Pixar Movies and Lucasfilm did come with a fair amount of criticism from Wall Street especially on their price tags. The tides have come and gone, and the studios are finally paying off and doing extremely well in the industry. Guardians of the Galaxy is a typical example of the company’s investment that is already topping the Box Office with over $94 million in revenue.
The Walt Disney Company (NYSE:DIS) did pay $4 billion for Marvel entertainment, $4 billion for Lucas film and about $7 billion for Pixar, amounts that it needed to justify sooner than later especially on the ability of the studios to guarantee more returns going forward.
“Recall, Disney did pay, I think it is $4 billion for Marvel, they paid $4 billion for Lucasfilm, [and]just over $7 billion for Pixar. A lot of times, acquisitions don’t go right, but Marvel has proven through being able to do not just the initial block-buster, but also going back the catalog and making hits out of obscure titles,” said Jon Frott on CNBC.
The Walt Disney Company (NYSE:DIS) hot streak in the industry continues, highlighted by the fact that the company was supposed to do $60 to $75 million but went on to $94 million for the Guardians of the Galaxy; made possible by great advertising campaign that the company pulled off.
“They were supposed to do $60 to $75 million they did $94 million and they did great advertising campaign around this. They put it out there and kept saying Marvel-Marvel showing some power characters and people went out and saw it. It shows how much is in that catalog,” said Jon Steinberg, the CEO Daily Mail North America.
The Walt Disney Company (NYSE:DIS) is set to announce its results as it continues to be a closely watched media component as one of the main catalogs of the Dow. The parks also continue to form an important part of the company’s revenue streams that are expected to continue performing well. Disney is already in top gear in producing exciting films that are set to keep up the momentum set out by the Guardians of the Galaxy. Star Wars is already in the pipeline as well as the Guardians sequels that should be out in 2017.