New Marvel at Disney

disney marvel mergerOn Monday, Disney announced that indeed they struck a deal with Marvel to purchase the company for $4 billion cash. In the deal comes over 5,000 Marvel characters that Disney will own the rights to. As a result, Disney shares were down, while Marvel shares jumped over 25%. For Marvel investors, $30 cash will be issued per share owned, as well as .745 share of Disney stock for every one share they own of Marvel. At present value, that puts the value of Marvel stock near the $50 mark, which was the big cause for the jump today.

As we head deeper into this recession, more Marquee mergers and takeovers will most likely take place. Some, where both sides feel good about the transaction (like the Marvel/Disney), others that are very one-sided ( a hostile takeover). At any rate, it can be good to find these companies, whose stock has taken an "over beating" and are primed for a takeover or buyout, because as we saw from Marvel today, rewards can be quite significant. I have (and still feel) felt that Yahoo is still on the cutting board for a buyout/takeover. If stock prices begin to go back down (which I firmly believe they will), I would not be surprised to see someone step in and buyout the company. Many other companies who have a niche following or technology may find themselves in that category very soon.



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