Luke Skywalker, Darth Vader, Boba Fett, and Yoda are all iconic characters that have captivated audiences through film and television. The acquisition of Lucasfilm, the parent company of the Star Wars franchise, is regarded as a pivotal strategic move for The Walt Disney Company DIS.
Let's take a retrospective look at the acquisition and evaluate the performance of shareholders since the announcement of the deal.
What Happened: Over the years, The Walt Disney Company has grown through acquisitions. Under the leadership of then-CEO Bob Iger, Disney acquired Pixar and Marvel in 2006 and 2009 and added the Star Wars brand with a 2012 acquisition.
On Oct. 30, 2012, Disney announced it was acquiring Lucasfilm in a deal valuing the company at $4.05 billion. Disney paid cash and used 40 million shares to complete the deal.
“This transaction combines a world-class portfolio of content including ‘Star Wars,’ one of the great 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,” Iger said at the time.
Since the acquisition, several Star Wars movies and shows have been released, including an additional film trilogy, several origin Star Wars movies, and the creation of shows like “The Mandalorian” and “The Book of Boba Fett.”
The 2015 movie “Star Wars: Episode VII – The Force Awakens” ranks as the top-grossing domestic movie of all time with $936.6 million and ranks fifth among all-time worldwide releases with a gross of $2.07 billion.
Disney has more Star Wars shows and movies planned, and the franchise remains a key piece touching Disney segments including consumer products, video games, movies, television, streaming and theme parks.
Related Link: May The Force Be With Disney's Star Wars Future: New Movies, TV Shows And The Return Of Daisy Ridley
Investing $1,000 in Disney Stock: Just like acquisitions before Lucasfilm, investors questioned if Disney was overpaying at the time. Years later, the box office success of the franchise and the performance of the streaming platform Disney+ anchored by Star Wars content have helped ease concerns.
Disney shares opened for trading at $51.15 the morning after the Lucasfilm acquisition was announced. A $1,000 investment could have bought 19.55 Disney shares at the time.
Today, those Disney shares would be worth $1,971.23. This represents a return of 97.1% since the Lucasfilm deal.
With Bob Iger back as the Disney CEO - the man who helped the company land Lucasfilm and acquire other franchises - investors in Disney could enjoy strong returns in the future.
The force remains strong with the Star Wars franchise, and this may also benefit shareholders in the long run.
Read Next: How To Buy Disney Stock
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