Disney to buy Lucasfilm for $4 billion

[Mr Kleen]

Disney to buy Lucasfilm for $4 billion

EW YORK (CNNMoney) -- The Walt Disney Company agreed Tuesday to buy Lucasfilm in a stock-and-cash deal valued at $4 billion.
The deal will make Lucasfilm owner George Lucas a significant shareholder in Disney, which will pay for the film company with $2 billion cash and around 40 million shares of its stock.

The takeover will give Disney (DIS, Fortune 500) control of Lucasfilm's blockbuster Star Wars franchise, which encompasses both filmed productions and a massive merchandising operation. Disney will also absorb Lucasfilm's special-effects production business, Industrial Light and Magic, and its Skywalker Sound audio production studio.

"It's now time for me to pass Star Wars on to a new generation of filmmakers," George Lucas said in a written statement. "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."

Lucas said he will work as a creative consultant on Star Wars Episode 7, the first of a planned new trilogy of live-action Star Wars movies. It is targeted for release in 2015, Disney said.
"The film is in what I'll call early-stage development right now," Disney CEO Bob Iger said on a conference call with analysts.

Disney hopes to essentially relaunch the Star Wars film franchise, which had its last installment in 2005 with Revenge of the Sith. The company envisions releasing one new Star Wars movie every two to three years.

Kathleen Kennedy, current co-chairman of Lucasfilm, will become president of Lucasfilm, reporting to Walt Disney Studios Chairman Alan Horn. Lucasfilm employees will remain based at the company's San Francisco headquarters.

Disney executives repeatedly drew parallels between the Lucasfilm deal and the company's 2009 acquisition of Marvel Entertainment, which also cost $4 billion. Both studios operate entertainment franchises that can generate a steady series of tentpole movies and fuel ancillary merchandising, theme park and other revenue streams, executives said.

[Sabre]

HOLY CRAP. Did NOT see this one coming. Does this give them ILM too? Pixar + ILM <swoon>

[zaxrex]

They saw the water rising on Wall Street....

[complacent]

if this means a jar-jar spinoff... there will be violence.

[PGT]

HOLY CRAP. Did NOT see this one coming. Does this give them ILM too? Pixar + ILM <swoon>

everything, including the back catalog and production companies. George decided it was time to pass it on (thank god) and spend some $$ I guess.

[drwrx]

I'm not sure how to think about this.
Disney has put out some good films recently. But also it's share of crap.
They now have Pixar, Industrial Light and Magic, Skywalker Sound as well as Marvel.
George hasn't put out a quality product in a while, so I'm in favor of having him hand the franchise off to others who may do a better job.

[Mr Kleen]

George Lucas Will Use Disney $4 Billion to Fund Education

Spokesperson for Lucasfilm tells THR the majority of the sale price will go toward educational philanthropy.

By the end of the year, the $4.05 billion sale of Lucasfilm to Disney should be finalized. And since George Lucas owns 100 percent of his company - which has little to no debt - all that money goes to him.

After that, Lucas plans to quickly put the bulk of the money into a foundation which will primarily focus on educational issues, a spokesperson for Lucasfilm tells THR.

[Sabre]

Wow, VERY cool.

[thermobox]

??? I don't really know what to think of this either. I think it will be a good thing that Disney has control of Star Wars. They should be able to pull out some real magic with the new movie(s) or what ever.

The thing that gets me is this:
I was watching Doomsday Preppers on the tube the other night. Sometimes the stuff on there is kinda cool. They had a little blurb of info between commercials that described well known celebrities that believe that the world is going to end in 2012. George was one of the celebs.

So is he trying to pull out all of the stops before the world assplodes?

[Sabre]

Now there is an interesting twist!

[PGT]

whether he owns the company or has $4B in the bank, it won't make a difference if it does happen, does it?

[Mr Kleen]

"Being a Star Wars fan is like rooting for a sports team that won 3 championships 30 years ago but hasn't won a game since."