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Assignment 1 B

Assignment 1 B. Gabriel C unningham . The Companies Involved.

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Assignment 1 B

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  1. Assignment 1B Gabriel Cunningham

  2. The Companies Involved • The companies involved in this agreement are Disney Studios and Marvel Entertainment. Disney Studios offered £2.5billion to Marvel to become their parent company and to take the rights of the 5,000 Super Heroes/ Villains they have created. Marvel Entertainment has now become the subsidiary of the global conglomerate which is a plus as large funding will result in more action films.

  3. Why are they famous? Disney have been a popular and very well known brand for decades because of the films and series they have release aimed at minors. Some of their most successful work involves ‘The Lion King’ which is rated the most popular and well known Disney film along with their ‘Toy Story Trilogy’ and of course ‘Finding Nemo’. Marvel Entertainment is probably just as popular as Disney or even more so because of the audience they target. Most of their action packed comics, cartoons, films, toys, games etc have had a large impact in society revolving around super heroes and super villains especially against the DC universe. Both of these companies/ studios make a tremendous profit and a combination of the two will probably really rack in the cash.

  4. Why The Deal Took Place • The agreed takeover is for a mixture of cash and stock with Disney shares accounting for roughly 40% of the buyout price which in the long run will prove useful and beneficial to both companies. Both of these companies are involved in the same industry therefore there aren't many negative effects that can take place after the deal. • When making this deal they believed that they both take the characters which capture the popular imagination of the audience and promote them vigorously globally on every media platform or even as merchandise.

  5. How has the Deal Increased The power of Influence? Disney as we know is a huge company that owns many subsidiaries such as Lucas Film’s, ESPN and ABC family which are all very widely watched by varieties of audiences. With all of these large companies as well as marvel entertainment and many more Disney has become a powerful company with huge profits, they have become a monopoly with their hand on production, distribution and exhibition. Disney will soon purchase more shares in companies and become a huge influence on the film industry probably taking over it, all though they aren't alone out there as there are more large companies such as Paramount, Columbia Pictures and so on who also hold some power.

  6. The Impact on Other Companies • I think that this deal will take a toll on other companies like Warner Brothers, Paramount, Columbia Pictures and other successful companies. An example of an issue that could arise is for example: If companies such as Columbia Pictures and Disney want to use the same list of A list actors, a dilemma may erupt between them as Disney may have a larger budget and may offer more incentives for the actors to star in their film.

  7. Issues With This Deal • Issue 1: Disney may not re-create a good adaptation of the original comics or may decide to unnecessarily change something that can ruin it. • Issue 2: Fans of Marvel Entertainment may not be please with the deal being made and this could lead to a loss of profit. • Issue 3: It may cause problems for Disney to continue franchises and create sequels to already started trilogies. • Issue 4: Disney haven’t got a licence for some of the Marvel Characters eg: Spider Man, The Fantastic four or any characters made independently.

  8. Bibliography • http://www.theguardian.com/business/2009/aug/31/disney-marvel-buy-out • http://www.ranker.com/list/disney-buys-marvel-our-10-worst-fears-and-wildest-dreams-/william-bibbiani?page=2 • http://en.wikipedia.org/wiki/Category:Walt_Disney_Company_subsidiaries

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