Monday, April 01, 2013

Buying Binge 3.0

The gobbling up of content continues.

... The Walt Disney Company (NYSE: DIS) has agreed to acquire Middle-earth Enterprises in a stock and cash transaction. Middle-earth Enterprises, formerly known as Tolkien Enterprises, is a division of The Saul Zaentz Company, headquartered in Berkeley, California.

Under the terms of the agreement, the transaction value is $10 billion (US). The final consideration will be subject to customary post-closing balance sheet adjustments.

“Middle-earth Enterprises reflects the extraordinary passion, vision, and storytelling of JRR Tolkien, the greatest author of the 20th century,” said Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company. “This transaction combines a world-class portfolio of content, with Disney’s unique and unparalleled creativity across multiple platforms, businesses, and markets to generate sustained growth and drive significant long-term value.”

Middle-earth Enterprises owns exclusive worldwide rights to motion picture, merchandising, stage and other rights on certain literary works of J.R.R. Tolkien including The Lord of the Rings and The Hobbit, which are currently licensed to Warner Brothers Entertainment, Inc. The Saul Zaentz Company evolved from Fantasy Records in Berkeley, California, the largest jazz label in the world. ...

Diz Co. keeps buying stories that have made buckets of money for other conglomerates. Guess it's an easier lift than creating new stories that make thimbles of money.

It appears to be CEO Robert Iger's stock in trade. And it seems to work. Look where the stock price is.


Wesley said...

I'm betting April Fools gag. Compare image on this page from Disney buying Lucasfilm to the image in that post above.

Also, I doubt any news release is released at 12am.

Steve Hulett said...

My suspicion as well.

Those IMPS.

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