Disney required about $ 2.12 billion to fund the deal. The top executives and other board members of Marvel were the main benefiters in the deal. They would receive millions of dollars from the stock they held.
After about three months of intense negotiations that were characterized by the intense back and forth bungling over the price, the two parties settled in $ 4 billion on 31st august. After the acquisition, Perlmutter, the CEO of marvel would receive about $ 34.1 million. This is according to the current Disney price.
On the same, Marvel would get about $ 1.5 billion upon the acquisition through the sale of stock. The merger had ensued the heated debate about the Disney’s $ 4 billion deal. To most people, the acquisition was meant to animate the entire operations of Disney by increasing its audience.
The acquisition is seen as the most effective strategy by Disney to ensure that its business has expanded. In deed, the company launched Disney XD channel with various media networks already established that signifies its success (Patton, 1991). The channel already airs a lot of animations something that has led to increased number of audience. Disney seeks to establish one of the most appealing and creative products to the customers. Currently, Disney operates in terms of franchised characters. This is a major strategy of control across the global media market.
Disney has been able to develop some of the most talented stars such as Montana. The company is able to reach their audience through film, television, websites and recording sounds among others. It aims to reach their audience in every corner of the world. Before the acquisition was completed, Disney had to consider some of the issues that were entailed in the merger.
For example, it had to consider copyright issues that it would possibly face after acquiring Marvel characters. Cost analysis was also predetermined before the deal was sealed. For example, Disney had to consider the effect of the cost and its ability to use other studios in dealing with their characters. Despite the lengthy negotiations, the two companies formally entered into a merger. After the acquisition, the two companies have experienced a mutual benefit. The two had to bind with the terms of agreement, evaluate their interests, as well as agendas, in order to ensure the merger is maintained.
Marvel has enough funds for its projects. On the other hand, Disney can reach a large audience at the same time. A good relationship should be maintained to ensure the two companies continue to benefit from each other.
