Disney to buy rival Marvel

Marvel Entertainment is to be acquired by entertainment giant Disney in a deal which values the comic-book company at $4bn. It is to be a cash and shares deal which will see Marvel shareholders receive $30 per share cash plus an additional 0.745 Disney shares for each share they own. It is a startling turnaround for Marvel after it filed for bankruptcy in 1996 and was rescued by a group including current chief executive Ike Perlmutter.

The acquisition will mean Disney can add 5,000 comic-book heroes like Spider-man and the Incredible Hulk to its own roster of well-loved cartoon characters. It plans to roll out the new additions through its range of television channels, games and theme parks at minimal extra cost.

The proposed deal has already been backed by both companies’ boards and now just needs the approval of shareholders and competition authorities in the US. Disney president and chief executive Robert Iger said of the plan "We believe that adding Marvel to Disney's unique portfolio of brands provides significant opportunities for long-term growth and value creation. We are pleased to bring this talent and these great assets to Disney."

Shares in Marvel leapt 25 per cent after the announcement, while Disney shares slipped three per cent as shareholders digested the large amount being paid in one of the summer's biggest deals.

WHAT THEY ARE SAYING:

Arvind Bhatia, analyst at Sterne, Agee and Leach, on BBC.co.uk: "They [Marvel shareholders] are getting a good deal in my opinion. The CEO of the company, Isaac Perlmutter, is also the largest shareholder of the company. From that standpoint, we think the chances of this deal going through are pretty high."

David Joyce, a media analyst at stockbroker Miller Tabak, in the Guardian: "This helps give Disney more important exposure to the young male demographic that they have sort of lost some ground with in recent years. When you look at the kind of TV shows on their cable networks, and the Disney consumer products line for the princess and fairies – the Hannah Montana kind of stuff – it shows that they have a lot of strength addressing the young female demographic."