Thursday, September 17, 2009

Marvel Legal

Who thought the next part of the news about Disney buying Marvel would be how many license deals the company begins to get back. Who was wondering if Mickey would appear in the pages of Marvel Max? I guess we pretty much imagined a whole bunch of interesting things happening behind this deal except this one. The New York based law firm of Levi & Korsinsky has filed a class action law suit against Marvel Entertainment challenging the purchase of Marvel by Disney. Here how the transaction works, Marvel Shareholders would receive $30 per share plus .745 of share value in Disney which totals $4 billion big ass bucks. However the suit says that the amount does match the intrinsic value of Marvel. According to a previous investigation by a law firm “the transaction appeared to be unfair to current investors of Marvel Entertainment, Inc. “by failing to conduct an open and fair auction process for the Company in order to maximize shareholder value” They may have a point. What we have to remember is that Marvel Entertainment currently has the rights to 5000 properties, i.e. characters - including Spider-Man, Hulk, Fantastic Four, etc. With the boom in Super-Hero movies, which translates into marketing properties of all kinds - including toys, games, clothing, video games, DVD, movie syndication, etc - all means lot of big ass bucks all around.

On the flip side, Marvel Entertainment, Inc. reported in 2007 Total Revenue of $485.81 million with a Net Income of $139.82 million and in 2008 Total Revenue of $484.66 million with a Net Income of $205.53million. Marvel shares traded after the announcement at $49.05 per share, and the day before announcement at $38.76 per share. Those who are currently investors in shares of Marvel Entertainment, Inc., and purchased the shares before August 31, 2009, have some interesting options before them.

I guess we have to see where things are going and who is and is not right in this. More news as it comes in.

No comments:

Post a Comment