Friday, March 13, 2015

Guardians' Profits

The Guardian of the Galaxy's numbers get broken down.

... Our experts peg Guardian's net budget at $196 million – $30 million over the original projection–but it was all on the screen. The film grossed $333 million domestic, and added another $344 million foreign, and another $96 million from China (worth $24 million to the bottom line). On a worldwide gross of $774 million Disney’s net haul was $204 million, for a Cash on Cash Return of 1.39. That’s extraordinary for a new franchise. ...

And how smart was Bob Iger to spend that $4 billion on Marvel?

The reason that Diz Co's stock price keeps going up and up and up is because Robert Iger made the decision to turn the Walt Disney Company into the Berkshire-Hathaway of entertainment conglomerates. The corporation's earnings growth has been on steroids almost from the month he took over.

People bemoan that "Disney isn't Disney anymore," but that was really true from the moment Walt Disney died in December 1966. Change accelerated when Michael Eisner, Frank Wells and Jeffrey Katzenberg rode through the Buena Vista gate in 1984, and gained speed again when Robert Iger assumed the helm. (Who would have guessed when he was Michael's Number Two?)

But here we are, with Disney transformed into a plethora of brands and cable networks, and it's paying off big time.


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