Disney Buying LucasFilm! WHOA

[fractal]

Some interesting headlines from Fitch ( Bond rating agency ) from yesterday...

*DJ Fitch: Disney's Free Cash Flow Generated Over That Period Will More Than Cover These Cash Outlays
04:27 PM *DJ Fitch: Anticipates Disney Will Repurchase $2B Of Issued Equity Over Subsequent 24 Mos >DIS
04:26 PM *DJ Fitch: No Ratings Impact On Disney's A Ratings, Stable Outlook From Lucasfilm Acquisition
04:26 PM PRESS RELEASE: Fitch: No Ratings Impact on Disney From Lucasfilm Acquisition

 

[The MaD Hatter]

Disney has all the ammunition they need to completely throttle Universal -- they always have. The problem is Disney hasn't ponied up the $$$ to do so in Orlando. Disney already has several successful properties they haven't capitalized on yet in terms of WDW attractions. Star Wars is just another powerful tool in their arsenal should they chose to use it. However, I've seen nothing to suggest that Lucas wouldn't have fully supported a Star Wars Land should Disney have decided to build one during the last 20+ years. Same goes for adding Indiana Jones attractions. Disney has done neither in Florida, even as the competition down the road grows increasingly stronger. Hopefully this deal will turn that around, but at this point I'm not so sure that's a foregone conclusion. Disney will make more than enough money from future Star Wars films, TV shows, and merchandise to pay for this deal without the need to increase the Star Wars presence in the parks. Why spend the money to build more Star Wars stuff when they can just raise ticket prices instead? Is this a doom & gloomer prediction? Probably. But I've seen very little from Disney in terms of the way they've managed WDW over the last decade and a half to suggest otherwise. Sure everyone would love more Star Wars attractions, and it seems like a no-brainer. But other things -- like proper park maintenance -- seem like no-brainers too, and we all know how that's been recently. As always with Disney -- I may dream, but I won't believe it until I see it.

 

[ChrisFL]

Does this mean they'll re-re-theme TEST TRACK? "TUCKER, The Man and His Dream"?

I might be the only one, but I'd LOVE that

 

[RSoxNo1]

An interesting article on cnn: http://tech.fortune.cnn.com/2012/10/31/what-disney-is-really-buying/?hpt=hp_t3

Of particular note is the very last line of the article.

That's pretty funny. It could be a coincidence, but it's pretty much assumed that Transformers is going to be announced tomorrow.

 

[EOD K9]

I'll take the Hangar Suite for 2 adults and a wookiee.

You're in Hanger 94 sir

 

[RSoxNo1]

Fair, but not one which is much bigger than the area I described. Expand west to cover all of Echo Lake + where 50s Prime Time, Hollywood & Vine, and Idol are, and there is more potential space for "Star Wars Land"

The biggest thing is that the design of Wizarding World is meant to be super intimate, but because of it's popularity it just feels claustrophobic. As great as the theming is of the land and Forbidden Journey, there are certainly problems with the spacing of the land. I didn't get that same claustrophobic feeling in Carsland, and I would expect that spacing in a Lucas Land and/or Avatar would be done substantially better than Wizarding World.

 

[RSoxNo1]

Neither has any reason to worry. Disney will continue to be the top attendance getter, and Universal will continue to grow its base and reach a stable attendance level of about 8-9 million per park. Both will continue to offer awesome rides and parks.

And fans will continue to fight over non-existent slights and rivalries. Haha

If Disney stands pat and doesn't add content to Epcot, DHS, and DAK, it's not unreasonable to see the Universal parks outdraw them in attendance. There's a reason why large scale projects are being discussed, the gap is closing.

 

[Beholder]

At least the Disney stores will strike more of a balance when it comes to boy centric merchandise. Cars, Marvel, maybe some Pirates and now Star Wars, it looks like the princess dominated look of Disney is starting to change.

Now, if they ended up buying Wizards of the Coast, then the buyout of my geek filled childhood would be complete.

 

[LudwigVonDrake]

However, it is interesting to note that they are also pointing out how the "rivalry" is really in the fan's minds and actually in California the theme parks work harmoniously.

When I booked my Disneyland trip the cast member asked me if I wanted to buy Universal tickets. You'd NEVER catch them doing that in Florida!

 

[flynnibus]

The stock is the butter in this deal. How many shares exactly is the wait I am waiting to see. If it is a good number then it might not have been that cheap.

The stock is already defined.. basically 40 million shares at last friday's price which is basically $50. The deal is fixed price.. 4.05 billion.. its just half cash funded, half stock funded. Disney is going to issue new shares to give Lucas, and then over the next two years buy back that many shares from the open market to avoid dillution.

 

[danlb_2000]

I thought they just agreed to an extension to the usage rights shortly after Disney bought Marvel.

There is no need for an extension, the contract is perpetual as long as Universal wants it and abides by the terms.

 

[GLaDOS]

If Disney stands pat and doesn't add content to Epcot, DHS, and DAK, it's not unreasonable to see the Universal parks outdraw them in attendance. There's a reason why large scale projects are being discussed, the gap is closing.

Possibly. But I think Universal and Comcast know exactly where they stand. They aren't trying to be top dog. They're just solidifying their name and place in the industry as an innovator.

 

[rnese]

Prices will no doubt go up. So, if I plan on going in 2015, can I go up to the front desk of the Poly and say..."I present to you a gift. These two droids"?

Will that pass as payment?

 

[sshindel]

If Disney really felt that big about screwing with Uni's announcement, all they would have to do is leak the plot synopsis about an hour before the event starts.

 

[danlb_2000]

So here's the silver lining of this otherwise wrong-headed purchase: if Disney can somehow come up with new SW characters that are an engaging as the original foursome: Princess Leia, Luke Skywalker, Chewbacca and Han Solo. That, at least, would involve actual creativity and would be a real accomplishment, akin to adding Jiminy Cricket into the world of Pinocchio. If Disney can't do that, I'm not sure what the point of more SW movies would be. The main story has essentially been told. The Empire has been beaten. Han got the girl. We know aaaallllll about Darth Vader's childhood (and wasn't THAT entertaining ). What would likely happen with a new SW film is the same-old same-old: some evil Sith lord will make trouble and some new Jedi will fight him. Haven't we seen that before? Several times? And not just on film, but in comics and books and video games?

Some people on the net are suggesting that Disney do a CG animated Star Wars film using the original characters and the original actors' voices. Now that kind of interests me. But Disney would never do it. That'd be too outside the box. This is Iger's Disney, not Walt's, after all.

Star Wars isn't just a single story, it's an entire "world" that you can tell pretty much any story in. Yes, you could tell those stories without Star Wars, but by having it you can tap into an existing fan base. I keep bringing up the Clone Wars, but it's a good example of the continued potential of the Star Wars franchise. They have introduced a number of great new characters in that series, so there is no reason they couldn't create new, memorable characters for the movies. Clone Wars is also a CG animated Star Wars series with the original characters (although only a few of the voices), so as to your last point they are almost all the way there.

P.S. If you read any of the Expanded Universe novels/comics you will find out that the Empire isn't beaten at the end of Return of the Jedi.

 

[CinematicFusion]

Could be. But Miklos Rosza composed his last score when he was already approaching the 90ies. I hope Williams is in good health and will make it through the new movies because I cannot imagine ANY composer replacing him.

I agree, I want to see Williams. I want it to be his choice of doing it or not doing it. If he is in good health and they just don't ask him...I'll be upset. If he gracefully declines the invite, I can understand.

 

[CinematicFusion]

Star Wars is still popular. My nephew is 6 and watches all the movies and the Clone Wars and his favorite ride at DHS is Star Tours. Star Wars continues to get new fans because it is a timeless epic story. And now a whole new generation will be introduced to it.

It's amazing to watch a child look at Phantom Menace the first time. Wasn't a big fan of the movie, but when I watch it with kids at the house. I can see the magic of the film. Wonder if my two little girls will enjoy Star Wars. We will see, they are about to turn 1 so I have some time.
Little boys love Star Wars. It's still as relevant today as it was in 1977. Kids will eat up the new trilogy.

 

[sshindel]

It's amazing to watch a child look at Phantom Menace the first time. Wasn't a big fan of the movie, but when I watch it with kids at the house. I can see the magic of the film. Wonder if my two little girls will enjoy Star Wars. We will see, they are about to turn 1 so I have some time.
Little boys love Star Wars. It's still as relevant today as it was in 1977. Kids will eat up the new trilogy.

My oldest girl (4 going on 5) loves Star Wars (though, oddly enough, not A New Hope, I think it's a pacing thing), so you've got a good chance.

 

[GrumpyFan]

An interesting article on cnn: http://tech.fortune.cnn.com/2012/10/31/what-disney-is-really-buying/?hpt=hp_t3

No offense, but I found that article to be irritatingly uninformative. The title, "What Disney is really Buying", was just a tease, because the writer only makes mention of facts that many others have already said. The meat of the article was here:

Lucasfilm became a money machine. "Star Wars" films have grossed a modest-sounding $4.6 billion globally, according the company. But total retail sales -- everything from action figures and Halloween costumes to video games -- have topped a staggering $25 billion. And according to NPD data, it has been the top toy brand for boys during six of the last seven years. "Lucas created the summer movie season aimed at the youth market," argues Hollywood.com analyst Paul Dergarabedian. (Lucasfilm referred follow-up inquiries to its press release announcing the deal.)

But, they neglected to mention that Lucasfilm is more than just George and a bunch of nerds who created Luke, Leia, Yoda and Darth Vader. The company also comprises the following entities as well, each very profitable successes in their own right.

• Industrial Light & Magic - the leading effects facility in the world, serving the motion picture, commercial production and theme park industries. ILM has created visual effects for nearly 300 feature films - including the earliest creation of entirely computer-generated characters in Young Sherlock Holmes, The Abyss, Terminator 2: Judgment Day and Jurassic Park; life-like distortions of the human body in Death Becomes Her and The Mask; game-changing digital breakthroughs in films such as Twister, Star Wars: Episode I The Phantom Menace and The Perfect Storm; and modern blockbusters such as Avatar and the Star Trek, Transformers, Pirates of the Caribbean and Iron Man franchises.
• Skywalker Sound - one of the largest, most versatile full-service audio post-production companies in the industry. Feature production credits include sound design and audio post-production for a varied slate of films from all corners of the film industry - including all of Pixar's animated features, as well as live-action blockbusters such as Iron Man, The Curious Case of Benjamin Button, The Dark Knight, There Will Be Blood, the Jurassic Park films and many, many more.
• LucasArts - rich catalog of beloved titles includes Maniac Mansion, The Secret of Monkey Island, Grim Fandango and Indiana Jones and the Fate of Atlantis, as well as franchises including Star Wars Battlefront, Lego Star Wars, Lego Indiana Jones and The Force Unleashed.
• Lucas Licensing - responsible for licensing and merchandising activities relating to Star Wars, Indiana Jones and other Lucasfilm entertainment properties - and even after more than 30 years, the Power of the Force continues to thrive. With over $20 billion in consumer sales world-wide, Lucas Licensing manages a program that includes the best-selling boys toy line of all time, 100 million books in print (and more than 80 New York Times best sellers), merchandise sold in over 100 countries and a global program of Star Wars museum exhibitions exploring the science and myth behind the Saga.
• Lucasfilm Animation - a digital animation studio launched to produce Star Wars: The Clone Wars - a computer-generated, weekly animated series exploring the further adventures of "a galaxy far, far away." Bringing an unprecedented production quality to TV animation, the series has appealed to an entirely new generation of Star Wars fans, while maintaining the level of storytelling introduced by the live-action films. In addition to continuing work on Star Wars: The Clone Wars and developing a second Star Wars animated series, the studio is also focusing efforts on feature film animation and other new intellectual properties.
• Lucas Online - a digital destination for entertainment, education, reference and e-commerce for Lucasfilm's intellectual properties and businesses. Lucas Online provides video streaming, interactive content, news updates, image galleries, feature stories, extensive databases, soundboards and more

Now, THAT's what Disney is Buying!

Also, they're not a subsidiary now, but remember too that Pixar was originally a part of LucasFilm and sold off to Steve Jobs.

One more thing. Just out of curiosity, I did a search on Amazon of "Star Wars" products and it came back with over 100,000 items. Clearly, they are buying way more than just a few characters and a neat sci-fi story.

In fact, what I find most interesting in this purchase by Disney, is the capacity to which it has the potential to propel them into the future. Pardon the pun, but they are now an entertainment empire of their own and have the ability to cover almost every aspect of film-making in house.

 

[Pumbas Nakasak]

thats the point, it isnt an express lane to theme park attractions, its about the money that can be made