Disney buy Lucasfilm, Episode VII for 2015

[Evie]

http://thewaltdisneycompany.com/disney-news/press-releases/2012/10/disney-acquire-lucasfilm-ltd

Global leader in high-quality family entertainment agrees to acquire world-renowned Lucasfilm Ltd, including legendary STAR WARS franchise.

Acquisition continues Disney's strategic focus on creating and monetizing the world's best branded content, innovative technology and global growth to drive long-term shareholder value.

Lucasfilm to join company's global portfolio of world class brands including Disney, ESPN, Pixar, Marvel and ABC.

STAR WARS: EPISODE 7 feature film targeted for release in 2015.

Burbank, CA and San Francisco, CA, October 30, 2012 – Continuing its strategy of delivering exceptional creative content to audiences around the world, The Walt Disney Company (NYSE: DIS) has agreed to acquire Lucasfilm Ltd. in a stock and cash transaction. Lucasfilm is 100% owned by Lucasfilm Chairman and Founder, George Lucas.

Under the terms of the agreement and based on the closing price of Disney stock on October 26, 2012, the transaction value is $4.05 billion, with Disney paying approximately half of the consideration in cash and issuing approximately 40 million shares at closing. The final consideration will be subject to customary post-closing balance sheet adjustments.

"Lucasfilm reflects the extraordinary passion, vision, and storytelling of its founder, George Lucas," said Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company. "This transaction combines a world-class portfolio of content including Star Wars, one of the greatest family entertainment franchises of all time, with Disney's unique and unparalleled creativity across multiple platforms, businesses, and markets to generate sustained growth and drive significant long-term value."

"For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," said George Lucas, Chairman and Chief Executive Officer of Lucasfilm. "It's now time for me to pass Star Wars on to a new generation of filmmakers. I've always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime. I'm confident that with Lucasfilm under the leadership of Kathleen Kennedy, and having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. Disney's reach and experience give Lucasfilm the opportunity to blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products."

Under the deal, Disney will acquire ownership of Lucasfilm, a leader in entertainment, innovation and technology, including its massively popular and "evergreen" Star Wars franchise and its operating businesses in live action film production, consumer products, animation, visual effects, and audio post production. Disney will also acquire the substantial portfolio of cutting-edge entertainment technologies that have kept audiences enthralled for many years. Lucasfilm, headquartered in San Francisco, operates under the names Lucasfilm Ltd., LucasArts, Industrial Light & Magic, and Skywalker Sound, and the present intent is for Lucasfilm employees to remain in their current locations.

Kathleen Kennedy, current Co-Chairman of Lucasfilm, will become President of Lucasfilm, reporting to Walt Disney Studios Chairman Alan Horn. Additionally she will serve as the brand manager for Star Wars, working directly with Disney's global lines of business to build, further integrate, and maximize the value of this global franchise. Ms. Kennedy will serve as executive producer on new Star Wars feature films, with George Lucas serving as creative consultant. Star Wars Episode 7 is targeted for release in 2015, with more feature films expected to continue the Star Wars saga and grow the franchise well into the future.

The acquisition combines two highly compatible family entertainment brands, and strengthens the long-standing beneficial relationship between them that already includes successful integration of Star Wars content into Disney theme parks in Anaheim, Orlando, Paris and Tokyo.

Driven by a tremendously talented creative team, Lucasfilm's legendary Star Wars franchise has flourished for more than 35 years, and offers a virtually limitless universe of characters and stories to drive continued feature film releases and franchise growth over the long term. Star Wars resonates with consumers around the world and creates extensive opportunities for Disney to deliver the content across its diverse portfolio of businesses including movies, television, consumer products, games and theme parks. Star Wars feature films have earned a total of $4.4 billion in global box to date, and continued global demand has made Star Wars one of the world's top product brands, and Lucasfilm a leading product licensor in the United States in 2011. The franchise provides a sustainable source of high quality, branded content with global appeal and is well suited for new business models including digital platforms, putting the acquisition in strong alignment with Disney's strategic priorities for continued long-term growth.

The Lucasfilm acquisition follows Disney's very successful acquisitions of Pixar and Marvel, which demonstrated the company's unique ability to fully develop and expand the financial potential of high quality creative content with compelling characters and storytelling through the application of innovative technology and multiplatform distribution on a truly global basis to create maximum value. Adding Lucasfilm to Disney's portfolio of world class brands significantly enhances the company's ability to serve consumers with a broad variety of the world's highest-quality content and to create additional long-term value for our shareholders.

The Boards of Directors of Disney and Lucasfilm have approved the transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, certain non-United States merger control regulations, and other customary closing conditions. The agreement has been approved by the sole shareholder of Lucasfilm.

Note: Additional information and comments from Robert A. Iger, chairman and CEO, The Walt Disney Company, and Jay Rasulo, senior executive vice president and CFO, The Walt Disney Company, regarding Disney's acquisition of Lucasfilm, are attached.

Investor Conference Call:

An investor conference call will take place at approximately 4:30 p.m. EDT / 1:30 p.m. PDT today, October 30, 2012. To listen to the Webcast, turn your browser to /investors/events or dial in domestically at (888) 771-4371 or internationally at (847) 585-4405. For both dial-in numbers, the participant pass code is 33674546.

The discussion will be available via replay on the Disney Investor Relations website through November 13, 2012 at 5:00 PM EST/2:00 PM PST.

About The Walt Disney Company

The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, interactive media, and consumer products. Disney is a Dow 30 company with revenues of over $40 billion in its Fiscal Year 2011.

About Lucasfilm Ltd.

Founded by George Lucas in 1971, Lucasfilm is a privately held, fully-integrated entertainment company. In addition to its motion-picture and television production operations, the company's global activities include Industrial Light & Magic and Skywalker Sound, serving the digital needs of the entertainment industry for visual-effects and audio post-production; LucasArts, a leading developer and publisher of interactive entertainment software worldwide; Lucas Licensing, which manages the global merchandising activities for Lucasfilm's entertainment properties; Lucasfilm Animation; and Lucas Online creates Internet-based content for Lucasfilm's entertainment properties and businesses. Additionally, Lucasfilm Singapore, produces digital animated content for film and television, as well as visual effects for feature films and multi-platform games. Lucasfilm Ltd. is headquartered in San Francisco, California.

The apocalypse has begun.

 

[CivCube]

For George, maybe. I think it's good we'll finally have a chance for outside talent to make a Lucasfilm movie. Just think if Pixar or Joss Whedon and Marvel are allowed in. That's possible now.

Nevertheless, huge huge movie news.

 

[_random_]

I'm generally pretty cool with this. Marvel and Pixar have produced and (seemingly) will continue to produce some top-notch cinema post-acquisition. If the basic plots are good and the talent is well-chosen, I could see this being some of the best Star Wars yet. And if Disney can't get the Joss Whedons and Brad Birds, then at least I've already accepted the idea of bad Star Wars movies existing.

One concern: Lucas has been pretty chill about fans using his work and doing their own thing with it, so long as it's not for profit. Disney has more-or-less the opposite reputation. I'm a bit concerned about the ultimate fate of the MagnoliaFan edits and Star Wars Revisted with this transaction.

My opinions have not changed since I posted that.

 

[Evie]

My apologies. I should have said "The Nerdpocalypse" has begun to make my opinion clearer.

I'm very much on the optimistic side, and very much amused at the nerdpocalypse.

 

[Disgustipated]

Lucas has sold his soul to the devil. Okay, you can argue he did that years ago.

Expect something along the lines of the Star Wars Holiday Special every year now.

I'm only kidding. But the thought of low quality reboots doesn't sound appealing. But on the optimistic side, I think most people can do a better job with Star Wars than George Lucas can.

 

[Valka D'Ur]

My opinions have not changed since I posted that.

One concern: Lucas has been pretty chill about fans using his work and doing their own thing with it, so long as it's not for profit. Disney has more-or-less the opposite reputation. I'm a bit concerned about the ultimate fate of the MagnoliaFan edits and Star Wars Revisted with this transaction.

I wonder if they'll go after all the fanzine writers and sellers. That would be too bad, since there are some incredibly creative stories out there.

I recently read an account of Paramount going after ONE fanzine because they thought the authors were writing/selling their own Star Trek novels and claimed they wanted to "protect the fans from shoddy merchandise."

Turns out Paramount had not the first clue about fanfiction, or what a fanzine even was, how many there were, how long they'd been in existence, or how long a story was "supposed" to be. Of course fanfic authors know our stories, poetry, songs, and artwork are labors of love and not-for-profit. And there IS incentive to make it good. Of course, there is sometimes the problem of a story being too good, and the studios get antsy when that happens.

Suddenly I'm imagining Jawas wearing Mickey Mouse ears...

 

[AnthonyBoscia]

Speaking of Paramount, they still got dibs on some future Indy movies, even if Disney has the rights. Whether the two cut a deal or not, I expect this will accelerate plans for more Indy movies to up the value.

Great business move by Unicron Disney here, they are going to make a fortune on this.

 

[_random_]

I wonder if they'll go after all the fanzine writers and sellers. That would be too bad, since there are some incredibly creative stories out there.

I recently read an account of Paramount going after ONE fanzine because they thought the authors were writing/selling their own Star Trek novels and claimed they wanted to "protect the fans from shoddy merchandise."

Turns out Paramount had not the first clue about fanfiction, or what a fanzine even was, how many there were, how long they'd been in existence, or how long a story was "supposed" to be. Of course fanfic authors know our stories, poetry, songs, and artwork are labors of love and not-for-profit. And there IS incentive to make it good. Of course, there is sometimes the problem of a story being too good, and the studios get antsy when that happens.

Suddenly I'm imagining Jawas wearing Mickey Mouse ears...

I wasn't thinking of fan fiction (which pretty much everyone accepts now, including Disney), but rather of fan edits, which takes the films and edits them to be better. It's a bit of a trickier area legally since it's using a lot of copyrighted footage. The two I mentioned were an HD remastering of the Original Trilogy, of which Episode IV is completed, and an edit of the prequels that rewrites the opening crawls, dubs all Jar-Jar's dialog, and generally cuts all the terrible parts while adding good parts that were cut. Episodes I and II were completed, although it seems they were deleted from YouTube.

On the subject of Star Trek, remember that the best Trek movie was made after Rodenberry stopped his involvement. This may still be a good thing.

 

[Dachs]

I'm still not totally sure what I'll do if they nuke the EU for this.

I mean, it probably won't happen. Lucas ended up using immense amounts of stuff from the EU when he made the prequels. I just...aaaagh. Wait and see. Cautious optimism.

 

[Zack]

I would be all in for a KOTOR trilogy or Thrawn trilogy (or even something entirely new), but if they follow a storyline bringing Darth Maul or the Emperor back from the dead...

 

[SouthernKing]

I wanted to stab someone after I heard about this.
Then again, if someone good on the outside is brought in, and if they manage to fit it in the canon, that would be great. (Personally, I think the New Sith Wars era would be nice, seeing as its pretty much a clean slate AFAIK, or the (KO)TOR-era)
But sadly, my opinion of Disney is not that high. I'm not optimistic about this.

 

[_random_]

So if you wanted a do a story featuring Luke and Han in a supporting role, assuming their ages correspond roughly to their actors', without either nuking the EU or directly adapting it? Or is there room to create a new story there?

 

[Zack]

But sadly, my opinion of Disney is not that high. I'm not optimistic about this.

You didn't like The Avengers?

 

[LightSpectra]

unless it gets >95% on Rotten Tomatoes, I'd only see it if the subject was something really interesting like Darth Bane or Darth Krayt.

 

[SouthernKing]

You didn't like The Avengers?

Yes, but that was Joss Whedon. If Joss Whedon directs VII that would be awesome, but I doubt that will happen.

 

[Dumanios]

If they make something from the Thrawn series, then that'd be awesome.

Question: Does this mean Leia is a Disney princess?

 

[Zack]

Yes, but that was Joss Whedon. If Joss Whedon directs VII that would be awesome, but I doubt that will happen.

It was also Disney. They have a good track record with this stuff (Pixar, Marvel).

 

[Skwink]

I'd like to them to make a movie based around Kyle Katarn.

 

[say1988]

On the subject of Star Trek, remember that the best Trek movie was made after Rodenberry stopped his involvement. This may still be a good thing.

Well, he was still a consultant on the three best Star Trek films (II, IV, and VI).

I'm still not totally sure what I'll do if they nuke the EU for this.

I mean, it probably won't happen. Lucas ended up using immense amounts of stuff from the EU when he made the prequels. I just...aaaagh. Wait and see. Cautious optimism.

They will probably use ideas from the EU (they would be stupid to pass up such a large source of material), but there is no reason for them to try too hard to stick with the EU canon.
The fans that would care will pay to see it whether or not they completely butcher it and more than likely complain about it breaking with the EU no matter how hardthe filmmakers tried.
And the vast majority of people that would be seeing the movies and buying merchandise don't know anything about the EU and won't care. These movies will be aimed at Star Wars fans, but a general audience.

And Disney buying Lucasfilms is probably the best thing that could happen to the franchise. Disney has a pretty good history with films and are much more than anthropomorphic animals and princess. And I think having someone other than Lucas with final say is a huge benefit. Plus, Lucasfilms is one of the few comapnies that match Disney on the merchandising front so that common criticism of Disney is not an issue. Sure the films have a good chance of being terrible, but the only option that has a lower chance of that is permanently killing thte film franchise (and I would put money that more will be made whenever Lucas had to leave the company and he is 68 already).

 

[Evie]

I wouldn't be surprised to see EU elements refered in the new films. REferences, perhaps. Wouldn't be surprised to see Thrawn and Mara Jade (but, unless they get rid of that stupid "Jedi shall not know love" moronitude from episode 2, probably NOT Mara Jade Skywalker) get promoted to full canon immigrants, although probably in support roles.

I would be flabergasted if they cared one with about maintaining the EU Canon. IT will be jettisoned...and probably rightly so.