Was the Lucas Film purchase worth the investment ?

[networkpro]

I know there are lots of rabid Star Wars fans out there so I'm expecting to take a few lumps, but was the 4 billion that spent to acquire Lucas Films tossing money into a hole ? I know the argument was that the profits from the films would pay for it easily and the fluff that Iger floated for the shareholders meeting gave the impression that the properties generated almost 3 times the investment, but when it comes down to looking at the numbers it falls flat. It seems that Mr Iger failed to include the initial purchase price in his calculation of return on Investments and only used box office, media and merchandise. If you look at the announced net profit for the 5 Disney Star Wars movies, it falls short by several billion dollars from the purchase price. We wont talk about the billion dollar per park that Galaxy's edge cost.

 

[Disstevefan1]

I know there are lots of rabid Star Wars fans out there so I'm expecting to take a few lumps, but was the 4 billion that spent to acquire Lucas Films tossing money into a hole ? I know the argument was that the profits from the films would pay for it easily and the fluff that Iger floated for the shareholders meeting gave the impression that the properties generated almost 3 times the investment, but when it comes down to looking at the numbers it falls flat. It seems that Mr Iger failed to include the initial purchase price in his calculation of return on Investments and only used box office, media and merchandise. If you look at the announced net profit for the 5 Disney Star Wars movies, it falls short by several billion dollars from the purchase price. We wont talk about the billion dollar per park that Galaxy's edge cost.

Yes of course it was worth it when they purchased it, but TWDC made wrong decisions and killed the franchise.

 

[MrPromey]

Yes of course it was worth it when they purchased it, but TWDC made wrong decisions and killed the franchise.

I think especially so, when you factor in Industrial Light and Magic which was a part of that purchase, as well.

Anyway, if you buy an expensive sports car and then drive it into a building, you can't really blame the expensive sports car for how poorly it was driven.

 

[Tha Realest]

Yes and no.

It’s paid back it’s acquisition cost.

But, it’s an asset that’s been unnecessarily squandered due to poor stewardship.