Disney to buy Lucasfilm for $4 billion - Oct. 30, 2012 Disney to buy Lucasfilm for $4 billion by Stacy Cowley @StacyCowley October 31, 2012: 5:08 AM ET Lucasfilm founder George Lucas, creator of Star Wars, is selling his company to Disney for $4 billion. The Walt Disney Company agreed Tuesday to buy Lucasfilm in a stock-and-cash deal valued at $4 billion. The deal will make Lucasfilm owner George Lucas a significant shareholder in Disney, which will pay for the film company with $2 billion cash and around 40 million shares of its stock. The takeover will give Disney ( DIS ) control of Lucasfilm's blockbuster Star Wars franchise, which encompasses both filmed productions and a massive merchandising operation. Disney will also absorb Lucasfilm's special-effects production business, Industrial Light and Magic, and its Skywalker Sound audio production studio. "It's now time for me to pass Star Wars on to a new generation of filmmakers," George Lucas said in a written statement.

"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." Lucas said he will work as a creative consultant on Star Wars Episode 7, the first of a planned new trilogy of live-action Star Wars movies. It is targeted for release in 2015, Disney said. "The film is in what I'll call early-stage development right now," Disney CEO Bob Iger said on a conference call with analysts. Lucas did not join him on the call. Disney hopes to essentially relaunch the Star Wars film franchise, which had its last installment in 2005 with Revenge of the Sith. Following the three planned sequels, the company envisions releasing even more Star Wars movies at a rate of a new film every two to three years. Future movies may not be sequels but movies that focus on fringe characters. Disney also believes there is potential for a television series. "Disney respects and understands -- perhaps better than anyone else -- the importance of iconic characters," Iger said. Disney's Lucasfilm purchase is the culmination of transition plans Lucas began forming several years ago as he "began contemplating a form of retirement," Iger said.

"He and I started talking about a year and half ago but only decided pretty recently that this is something we both wanted to do." Disney executives repeatedly drew parallels between the Lucasfilm deal and the company's 2009 acquisition of Marvel Entertainment , which also cost $4 billion. Both studios operate entertainment franchises that can support a steady series of tentpole movies and fuel ancillary merchandising, theme park and other revenue streams, executives said. They also cited the past precedent of Pixar, which Disney purchased in 2006 . Apple ( AAPL ) co-founder Steve Jobs, Pixar's creator, became Disney's largest shareholder, with a stake that dwarfs Lucas' planned share. Steve Jobs' family trust now controls his nearly 8% share of the company. For sale: Disney-inspired fairy tale manor In valuing Lucasfilm, Disney focused almost entirely on the Star Wars franchise, company executives said. "We didn't ascribe any value to the Indiana Jones franchise because of the encumbrances that exist," Iger said, referring to Paramount Pictures' ongoing stake in the series it has distributed. News Corp. ( NWS ) unit 20th Century Fox has been Star Wars' distributor until now.

It retains some rights to past films but has no stake in Disney's planned future installments, company executives said. Kathleen Kennedy, current co-chairman of Lucasfilm, will become president of Lucasfilm, reporting to Walt Disney Studios Chairman Alan Horn. Lucasfilm employees will remain based at the company's San Francisco headquarters. How active will Lucas be involved in shaping future Star Wars films? Iger's answer to that question: "It's his intent to retire." That will come as a relief to some of the fans who flocked to sites like Twitter, where #DisneyStarWars quickly became a trending topic. One analyst on Disney's conference call shared their mixed emotions. "I can say, Bob, that you're risking the wrath of the entire Internet," he told Iger. "But, I dunno, I'm excited." CNNMoney (New York) First published October 30, 2012: 4:35 PM ET Disney buys Lucasfilm for $4 billion FacebookEmail Twitter Google+ LinkedIn Pinterest Disney buys Lucasfilm for $4 billion Disney is buying Lucasfilm for $4 billion, adding the legendary Star Wars franchise to the entertainment giant's stable of characters.

Post to Facebook Disney buys Lucasfilm for $4 billion Disney is buying Lucasfilm for $4 billion, adding the legendary Star Wars franchise to the entertainment giant's stable of characters. Check out this story on USATODAY.com: CancelSend A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. 425 To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Disney buys Lucasfilm for $4 billion Matt Krantz, Mike Snider, Marco Della Cava and Bryan Alexander, USA TODAY Published 4:11 p.m. ET Oct. 30, 2012 | Updated 10:15 p.m. ET Oct. 30, 2012 In this publicity photo released by Disney, CEO Robert Iger, left, and George Lucas of Lucasfilm sign the deal Tuesday letting Disney acquire the "Star Wars" studio for about $4 billion.

(Photo: Rick Rowell, AP) Adds legendary 'Star Wars' franchise to entertainment giant's stable of characters Disney will pay half the deal value in cash; the rest through company shares Deal is Disney's fourth-largest acquisition 49932 CONNECT TWEET LINKEDIN 425 COMMENTEMAILMORE Luke Skywalker and Han Solo are joining Mickey Mouse, Buzz Lightyear and Iron Man in Disney's roster of heroes. Disney is buying Lucasfilm for $4 billion, adding the legendary Star Wars franchise to the entertainment giant's stable of characters. Lucasfilm is 100% owned by founder George Lucas. The purchase culminates a one and a half year pursuit of the Lucas empire, Disney's CEO said. Lucas, who receives 40 million Disney shares from the deal, will be the second-largest non-institutional shareholder of Disney, Bloomberg News says, behind the trust of deceased Apple co-founder Steve Jobs. The 68-year-old Lucas will serve as a creative consultant but plans to retire. "For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," said Lucas, chairman and CEO of Lucasfilm, in a statement.

"It's now time for me to pass Star Wars on to a new generation of filmmakers." Said Disney CEO Robert Iger: "This is one of the great entertainment properties of all time, one of the best branded and one of the most valuable, and it's just fantastic for us to have the opportunity to both buy it, run it and grow it." The big screen isn't the only place that there might be tales from the galaxy far, far away. "We really like Star Wars' potential on TV as well," Iger says, "and we think (cable-satellite channel) Disney XD will be a great home for that." The buyout is Disney's fourth largest deal ever. It's behind the $19.7 billion, $7.6 billion and $5.2 billion buyouts of Capital Cities/ABC in 1995, Pixar in 2006 and Fox Family in 2001, respectively, says S&P Capital IQ. It tops the $3.96 billion Disney paid for Marvel in August 2009. Disney expects to more aggressively expand the Star Wars film schedule, Iger said in a statement.

Following the release of Episode VII in 2015, "our long term plan is to release a new Star Wars feature film every two to three years," Iger said. Star Wars Episodes VIII and IX, Iger said, would follow "probably on a cadence of every other year and then go from there. . . . The (first) film is in early stage development right now." Based on Disney's closing price on Oct. 26, the deal is valued at roughly $4.1 billion. Disney ( DIS ) will pay half that value in cash and issue 40 million shares of Disney to pay for the rest. Also included in the deal are special-effects house Industrial Light & Magic, Skywalker Sound and video game company LucasArts. Lucasfilm spokeswoman Lynne Hale said Disney's "intent is for everyone (in Lucas' various companies) to stay where they are." ILM is headquartered in the Presidio in San Francisco, while Skywalker Sound and Lucasfilm are on a series of ranches Lucas owns in Marin County. "As far as the legacy George has created, we don't take that lightly," Disney chief Iger said.

"We definitely plan to expand the presence of Star Wars in our parks which could include new parks." Wall Street is hopeful Disney can quickly recoup the money by fully tapping the potential for more movies, theme park tie-ins and merchandise, says David Miller, analyst at investment research firm Caris. "If you look at how acquisitive Disney has been, it's all about content," he says. Lucasfilm "is one of the great entertainment franchises of all time." Many investors were caught off guard by the announcement, but there have been questions about what Disney would do with its mounting pile of cash. Disney had $4.4 billion in cash and short-term investments as of the end of June. "Disney did a good job keeping this quiet," Miller says. Kathleen Kennedy, co-chairman of Lucasfilm, will report to Walt Disney Studios Chairman Alan Horn. Kennedy, who produced Schindler's List and War Horse, will become the new studio president and be executive producer on the new films. Film critic Leonard Maltin, also a historian of the medium, was taken aback by the news and had questions about it. "There's no way of telling where this is going to go at this point," Maltin said.

"Obviously Disney, as they did with Marvel, is investing in a bluechip property that will yield dividends for years to come. "But it's not a fresh property," he added. "But it remains to be seen if they revive the characters. There are a lot of unanswered questions." The latest part of the Star Wars saga, Star Wars Episode VII, is targeted for a 2015 release. (Photo: Lucasfilm) Peter Sealey, a California professor and former president of marketing and distribution for Columbia Pictures, says it appears Lucas gains the most out of the deal. "George Lucas was never a part of Hollywood, he was always an outlier who left for northern California as soon as he had a hit," Sealey said. "So this is an end of an area, the story of a brilliant filmmaker who had one incredibly long home run. This was the only exit strategy he really had. He never wanted to grow the company." Sealey said he can't imagine Disney would let Lucasfilm's entities keep operating away from Disney's home base in the Los Angeles area. "I don't see how or why you keep any of this up in that area, it'll all move down to Burbank," he said.

Disney's theatrical lineup could use a boost in some areas. While the studio's animated Wreck-It Ralph, due Friday, has healthy buzz, other recent releases such as Mars Needs Moms and John Carter have disappointed. "We actually determined that we'd be better off as a company releasing a sequel to Star Wars than probably most other, I'll call them 'not yet determined' films," Iger said. "So we love the fact that this will take its place in our live-action strategy as an already-branded, already-known quantity." 49932 CONNECT TWEET LINKEDIN 425 COMMENTEMAILMORE Read or Share this story: NEVER MISS OUT Managing Your Money Master your money with the latest business and investment news, articles and tips from financial experts each Friday.

Disney buying 'Star Wars' maker Lucasfilm for $4.05B | Fox News Disney buying 'Star Wars' maker Lucasfilm for $4.05B Published October 30, 2012 Facebook 0 Twitter 0 Email Print May 25, 2012: Director George Lucas arrives on the red carpet ahead of the screening of the film "Cosmopolis" in competition at the 65th Cannes Film Festival. (Reuters) LOS ANGELES – A decade since George Lucas said "Star Wars" was finished on the big screen, a new trilogy under new ownership is destined for theaters after The Walt Disney Co. announced Tuesday that it was buying Lucasfilm Ltd. from him for $4.05 billion. The seventh movie, with a working title of "Episode 7," is set for release in 2015. Episodes 8 and 9 will follow. The trilogy will continue the story of Luke Skywalker, Han Solo and Princess Leia beyond "Return of the Jedi," the third film released and the sixth in the saga. After that, Disney plans a new "Star Wars" movie every two or three years.

Lucas will serve as creative consultant in the new movies. "I'm doing this so that the films will have a longer life," Lucas, the 68-year-old creator of the series and sole owner of Lucasfilm, said in an interview posted on YouTube. "I get to be a fan now ... I sort of look forward to it. It's a lot more fun actually, than actually having to go out into the mud and snow." Disney CEO Bob Iger said Lucasfilm had already developed an extensive story line on the next trilogy, and Episode 7 was now in early-stage development. He said he talked with Lucas about buying the company from him a year and a half ago, but they didn't decide on a deal until very recently as Lucas set in motion his retirement. "The last `Star Wars' movie release was 2005's `Revenge of the Sith' -- and we believe there's substantial pent-up demand," Iger said. More On This... Twitter abuzz with Disney-Lucas mashups The blockbuster deal announced Tuesday will see Disney pay half the acquisition price in cash and half in newly issued stock. The company expects it to add to earnings in 2015.

Along with the cash, Lucas will end up owning about 40 million Disney shares, which is about a 2.2 percent stake of the 1.83 billion shares that will be in circulation when the transaction closes. The deal includes Lucasfilm's prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the "Indiana Jones" franchise. Lucas was hailed as a cinematic visionary when the original "Star Wars" came out in 1977. But he had become an object of often-vicious ridicule by the time he released 3-D versions of all six films in the Star Wars franchise earlier this year. Die-hard Star War fans had been vilifying Lucas for years, convinced that he had become a commercial sell-out and had compounded his sins by desecrating the heroic tale that he originally sought to tell. They railed against him for adding grating characters such as Jar Jar Binks in the second trilogy and attacked him for tinkering with the original trilogy, too.

Any revision in special edition or home video releases -- such as making the Ewoks blink or having a green-skinned alien named Greedo take the first shot at Han Solo in a famous bar scene -- were treated as blasphemy. The criticism grated on Lucas, who vowed never to make another Star Wars movie. "Why would I make any more when everybody yells at you all the time and says what a terrible person you are?" Lucas told The New York Times earlier this year. "Indiana Jones and the Kingdom of the Crystal Skull," the fourth film in another lucrative franchise, subjected Lucas to even more barbs when it came to the big screen in 2008. Fans of those films were especially outraged about an opening scene that featured Indiana Jones crawling into a lead-lined refrigerator to survive a nuclear bomb blasting. Lucas was fed up by the time he released "Red Tails," a movie depicting the valor of African-American pilots during World War II, earlier this year. He told the Times he was ready to retire from the business of making blockbusters and return to his roots as a student at USC's film school, where he once made a movie about clouds moving in a desert.

Kathleen Kennedy, the current co-chairman of Lucasfilm, will become the division's president and report to Walt Disney Studios Chairman Alan Horn. She will serve as executive producer for the new movies. Directors for the new movies have not yet been announced. In the YouTube video, Lucas said the decision to continue with the saga wasn't inconsistent with past statements. "I always said I wasn't going to do any more and that's true, because I'm not going to do any more, but that doesn't mean I'm unwilling to turn it over to Kathy to do more," Lucas said. He said he has given Kennedy his story lines and other ideas, "and I have complete confidence that she's going to take them and make great movies." Kennedy added that she and Lucas had discussed ideas with a couple of writers about the future movies and said Lucas would continue to have a key advisory role. "My Yoda has to be there," she said. The deal brings Lucasfilm under the Disney banner with other brands including Pixar, Marvel, ESPN and ABC, all companies that Disney has acquired over the years.

A former weatherman who rose through the ranks of ABC, Iger has orchestrated some of the company's biggest acquisitions, including the $7.4 billion purchase of animated movie studio Pixar in 2006 and the $4.2 billion acquisition of comic book giant Marvel in 2009. Coincidentally, Lucas owned the startup that later became Pixar, before he sold it to Apple's Steve Jobs in 1986 for about $5 million. When Jobs sold Pixar to Disney, he became Disney's largest single shareholder with a 7.7 percent stake. Those shares are now held in a trust. Disney shares were not trading with stock markets closed due to the impact of Superstorm Sandy in New York. They closed on Friday at $50.08.

Advertisement Disney to buy Star Wars production company Lucasfilm for $4bn | Film | The Guardian Star Wars: The Force Awakens Disney to buy Star Wars production company Lucasfilm for $4bn Deal will pave way for release of new series of Star Wars feature films from 2015, with George Lucas as creative consultant Tuesday 30 October 2012 20.24 EDT First published on Tuesday 30 October 2012 20.24 EDT Close This article is 4 years old Disney has announced its purchase of Lucasfilm, the maker of Star Wars, in a $4.05bn (£2.5bn) deal that will pave the way for a new series of Star Wars feature films. In a move that prompted excitement and speculation among sci-fi fans, Disney said the plan is to release a new Star Wars film every two to three years after bringing out Star Wars Episode 7 in 2015. George Lucas , who founded Lucasfilm in 1971 before enhancing his name with other worldwide hits such as the Indiana Jones franchise, is a filmmaker known for exercising control over the most minute details of the fictional universe he created.

So it was not a surprise to hear that Lucas will remain as a creative consultant on the new Star Wars films. "For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," he said. "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." Disney's chief executive, Robert Iger, said: "Lucasfilm reflects the extraordinary passion, vision, and storytelling of its founder, George Lucas. "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." Disney said it will pay about half the purchase price in cash and issue about 40m shares. The purchase, which comes in the wake of Disney's acquisitions of Pixar and Marvel, includes Lucasfilm's prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the Indiana Jones franchise.

Kathleen Kennedy, the Lucasfilm co-chair who was handpicked earlier this year by Lucas, will become president of Lucasfilm and serve as executive producer on the new feature films, with Lucas adopting a consultancy role. It is 35 years since the first Star Wars film. The sixth and most recent instalment in the series was 2005's prequel, Revenge of the Sith, which was given a mixed reception by critics but broke several box office records and was that year's second highest grossing film. However, many passionate Star Wars fans have been hitting out at Lucas for years, alleging that he had become a commercial sell-out. They railed against him for adding grating characters such as Jar Jar Binks in the second Star Wars trilogy and attacked him for tinkering with the original trilogy, too. The criticism grated on Lucas, who vowed never to make another Star Wars movie during an interview with the New York Times earlier this year . "Why would I make any more when everybody yells at you all the time and says what a terrible person you are?" Lucas told the Times.

Reports later suggested that the filmmaker had become disillusioned with Hollywood after experiencing difficulties in securing the distribution last year of his second world war film about squadron of African-American pilots, Red Tails, which he funded by Lucas with $58m of his own money after studios refused to back it. In a video posted on YouTube , Lucas said the decision to continue with the Star Wars saga was not inconsistent with past statements. "I always said I wasn't going to do any more and that's true, because I'm not going to do any more, but that doesn't mean I'm unwilling to turn it over to Kathy [Kennedy] to do more," Lucas said. Amid a delighted reaction from many fans, suspicion and fears for the future were also present in large doses. "I feel sick. It's like having your Mum have an affair and remarry," said one participant on TheForce.net fan site. Elsewhere, one blogger suggested the most recent Star Wars films had completed the series and pleaded : "Please don't make us regret this George.

You still owe us big time for introducing us to Jar Jar Binks." Peter Hartlaub, pop culture critic at the San Francisco Chronicle and a Star Wars fan expressed doubt in another blog that the new Star Wars film could be turned around in time for 2015: "My hope as a fan is that this isn't another Iron Man 2 situation, where the studio's eagerness to pump out a sequel on a tight deadline seriously harms the potential of the finished product." Jay Rasulo, Disney's senior executive vice-president, has hinted at the future direction of what the company described as the "Star Wars saga": "Today, Star Wars is heavily skewed toward toys and North America. We see great opportunity domestically to extend the breadth and depth of the Star Wars franchise into other categories." Peter Bradshaw: Those of us who grew up with the original three films never recovered from the turgid horror that was 1999's The Phantom Menace. Will the new sequels rescue Luke Skywalker and co?

Published: 31 Oct 2012 Star Trek director JJ Abrams is to direct the next instalment of the sci-fi franchise, with Disney's Star Wars Episode VII set to launch in cinemas in 2015 Published: 25 Jan 2013 Ben Child: If his Star Trek alchemy is anything to go by, Abrams will deliver a film both true to the spirit of the original and full of invention Published: 25 Jan 2013 James Russell: No prizes for guessing why George Lucas might sell his company for $4bn, but this deal is the upshot of a complex creative relationship that has developed over decades Published: 31 Oct 2012 Disney Buys Lucasfilm for $4 Billion - Business Insider Disney Buys Lucasfilm for $4 Billion Oct. 30, 2012, 4:25 PM 77,596 ">AP Disney announced today it will buy Lucasfilm for $4 billion in cash and stock. George Lucas, the creator of the Star Wars franchise and CEO of Lucasfilm, owns 100% of the company.

Even better: A new Star Wars movie, Episode VII, will debut in 2015. More Star Wars feature films are planned after that. Here's the full press release: BURBANK, Calif. & SAN FRANCISCO--(BUSINESS WIRE)-- 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 thatStar 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 ofinnovative 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.

Disney buys Star Wars maker Lucasfilm from George Lucas - BBC News BBC News Disney buys Star Wars maker Lucasfilm from George Lucas 31 October 2012 Close share panel Media captionGeorge Lucas signs away his Star Wars empire to Disney's Robert Iger Disney is buying Lucasfilm, the company behind the Star Wars films, from its chairman and founder George Lucas for $4.05bn (£2.5bn). Mr Lucas said: "It's now time for me to pass Star Wars on to a new generation of film-makers." In a statement announcing the purchase , Disney said it planned to release a new Star Wars film, episode seven, in 2015. That will be followed by episodes eight and nine and then one new movie every two or three years, the company said. The last Star Wars film was 2005's Revenge of the Sith, and Disney said it believed there was "substantial pent-up demand". Some fans are up in arms at the 'House of Mouse' getting its hands on a series that left such an indelible mark on their collective imaginations.

By Neil SmithArts reporter, BBC News Fans divided over Star Wars news James Burns, founder of fansite Jedi News in the UK, said: "It is fantastic that we are going to be seeing more Star Wars films as George Lucas has said many times that there wouldn't be any more." Disney will pay about half in cash and half in stock, issuing 40 million Disney shares in the transaction. The deal follows Disney's acquisitions of Pixar studios for $7.4bn in 2006 and Marvel comics for $4.2bn in 2009. "Our valuation of Lucasfilm is roughly comparable to the value we placed on Marvel when we announced that acquisition in 2009," Disney said, adding that the valuation was almost entirely driven by the Star Wars franchise. Transition George Lucas launched Lucasfilm in 1971 and the first Star Wars film was released in 1977. "For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," Mr Lucas said.

"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." Mr Lucas will continue as a creative consultant. Kathleen Kennedy, currently co-chairman of Lucasfilm, will become president of the firm and will be the executive producer on the new Star Wars films. Media captionCritic on new Star Wars: "My heart sinks" She worked on the Jurassic Park and Back to the Future franchises and co-founded Amblin Entertainment with Steven Spielberg. When the later Star Wars films were released in the 1990s and 2000s, although they did well at the box office, they were generally not well-received by fans. But Josh Dickey, film editor at Variety magazine in LA, said that Disney was a "great fit" to update Star Wars. "They're so good at branding and brands. They're so good at working with existing intellectual property and making it resonate with fans and marketing it very well," he told BBC World Service radio. "They're not as good at creating original content, except for their Pixar division.

"I think if you bring together the minds from Pixar [and] the minds from Disney, the news that Disney is going to reboot Star Wars was a lot more exciting to fans than just 'there's gonna be another Star Wars'." Media captionJedi fans "really, really excited" Surprise Lucasfilm is also the production company behind the Indiana Jones franchise, and fantasy films Willow and Labyrinth. Michael Corty, analyst at Morning Star, said Disney's deal was clearly part of a pattern in buying new franchises. "Pixar was the first big one, then Marvel, and now this one here," he said.

"Because Lucas is private, I would assume most investors would be surprised." Disney to Buy Lucasfilm for $4.05 Billion; New 'Star Wars' Movie Set for 2015 | Hollywood Reporter Disney to Buy Lucasfilm for $4.05 Billion; New 'Star Wars' Movie Set for 2015 12:54 PM PDT 10/30/2012 by Alex Ben Block COMMENTS Disney/ABC Television Group UPDATED: Kathleen Kennedy will become Lucasfilm's president, reporting to Walt Disney Studios chair Alan Horn; the company plans new "Star Wars" films every two to three years The Walt Disney Co. has acquired Lucasfilm for $4.05 billion in cash and stock and announced a new Star Wars movie to be released in 2015. Kathleen Kennedy, current co-chair of Lucasfilm, will become its president, reporting to Walt Disney Studios chair Alan Horn. Disney is paying about half the purchase price in cash and will issue 40 million shares of stock, the company said in a statement Tuesday.

Kennedy will serve as executive producer on new Star Wars features, with the franchise's creator and Lucasfilm founder George Lucas, 68, serving as creative consultant. There are plans to release a new Star Wars film every two or three years. PHOTOS: When You Wish Upon a Death Star: The Surprising Symmetry of Star Wars and Disney “For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next,” said Lucas, chairman and CEO of Lucasfilm, in a statement. “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.” The deal comes on the heels of Disney's 2009 acquisition of Marvel Entertainment for $4 billion and its 2006 purchase of Pixar Animation Studios, two potent entertainment brands that appeal to families. The Disney board has approved the Lucasfilm acquisition, but it is subject to antitrust scrutiny by the U.S. government. While Lucas and Disney have had a long relationship, it has been most visible at the company's theme parks, where Star Tours and other attractions have been popular for more than two decades. STORY: George Lucas Will Use Disney $4 Billion to Fund Education However, the Stars Wars movies have been distributed through 20th Century Fox, which will now be cut out of future Star Wars and other related business. (Although Fox already has been set to release 3D versions of the past Star Wars movies, it is unclear whether that relationship will be affected by the sale.

The acquisition also raises questions about the future of Stars Wars: The Clone Wars, a highly popular series on Cartoon Network, which is owned by a Disney competitor, Turner Broadcasting, a division of Time Warner.) Disney also is acquiring Lucasfilm’s hugely profitable consumer products and merchandising businesses, which should be a good fit for the buyer. “Lucasfilm reflects the extraordinary passion, vision and storytelling of its founder, George Lucas,” Disney chairman and CEO Bob Iger said in a statement. “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.” In a call with investors, Iger said the first new Star Wars movie is targeted for 2015 and that the company planned for another movie every two to three years after that. Disney releases eight to 10 pictures per year, including one from Pixar and one or two from Marvel Studios. The plan is for a Star Wars movie in one of those tentpole slots.

Iger told investors that Star Wars is a perfect property for TV, particularly for the company's young-male-skewing network Disney XD, and plans to expand the franchise's presence in its theme parks. In addition, while Star Wars merchandise has been big business for decades, that business mostly has been domestic, Iger said. Using Marvel as a model, Disney plans to grow international marketing of Star Wars products by increasing the brand's presence in their stores, with more toys and with other products. In June, Kennedy was named co-chair of Lucasfilm alongside Lucas, whose said then that his role at the company would be phased out. The producer and seven-time Oscar nominee is a frequent Steven Spielberg collaborator whose credits include E.T. The Extra-Terrestrial (1982), Indiana Jones and The Temple of Doom (1984), Back to the Future (1985), Empire of the Sun (1987), Jurassic Park (1993), Schindler’s List (1993), The Sixth Sense (1999) and Nov. 16 release Lincoln. Disney Buys Lucasfilm, "Star Wars" Franchise for $4 Billion [UPDATED] It’s not April Fools’ Day.

The Walt Disney Company is acquiring Lucasfilm and the Star Wars franchise for $4.05 billion. The press release: 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. An investor conference call will take place at approximately 4:30 p.m. EDT / 1:30 p.m. PDT today, October 30, 2012. Details for the call are listed in the release. BURBANK, Calif. & SAN FRANCISCO–(BUSINESS WIRE)— 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 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. ROBERT A.

IGER, CHAIRMAN AND CEO, THE WALT DISNEY COMPANY REMARKS FOR ANALYSTS REGARDING DISNEY’S ACQUISITION OF LUCASFILM LTD., AS PREPARED As we just announced, The Walt Disney Company has agreed to acquire Lucasfilm and its world class portfolio of creative content – including the legendary Star Wars franchise – along with all of its operating businesses, including Industrial Light & Magic and Skywalker Sound. George Lucas is a visionary, an innovator and an epic storyteller – and he’s built a company at the intersection of entertainment and technology to bring some of the world’s most unforgettable characters and stories to screens across the galaxy. He’s entertained, inspired, and defined filmmaking for almost four decades and we’re incredibly honored that he has entrusted the future of that legacy to Disney. Disney has had a great relationship with George that goes back a long way – with Star Wars theme attractions in our parks in Anaheim, Orlando, Paris and Tokyo. This acquisition builds on that foundation and combines two of the strongest family entertainment brands in the world.

It makes sense, not just because of our brand compatibility and previous success together, but because Disney respects and understands – better than just about anyone else – the importance of iconic characters and what it takes to protect and leverage them effectively to drive growth and create value. Lucasfilm fits perfectly with Disney’s strategic priorities. It is a sustainable source of branded, high quality creative content with tremendous global appeal that will benefit all of Disney’s business units and is incredibly well suited for new business models, including digital platforms. Adding the Lucasfilm IP to our existing Disney, Pixar and Marvel IP clearly enhances our ability to serve consumers, strengthening our competitive position — and we are confident we can earn a return on invested capital well in excess of our cost of capital. Star Wars in particular is a strong global brand, and one of the greatest family entertainment franchises of all time, with hundreds of millions of fans around the globe. Its universe of more than 17,000 characters inhabiting several thousand planets spanning 20,000 years offers infinite inspiration and opportunities – and we’re already moving forward with plans to continue the epic Star Wars saga.

The last Star Wars movie release was 2005’s Revenge of the Sith – and we believe there’s substantial pent up demand. In 2015, we’re planning to release Star Wars Episode 7 – the first feature film under the “Disney-Lucasfilm” brand. That will be followed by Episodes 8 and 9 – and our long term plan is to release a new Star Wars feature film every two to three years. We’re very happy that George Lucas will be creative consultant on our new Star Wars films and that Kathleen Kennedy, the current Co-Chair of Lucasfilm, will executive produce. George handpicked Kathy earlier this year to lead Lucasfilm into the future. She’ll join Disney as President of Lucasfilm, reporting into Walt Disney Studios Chairman Alan Horn and integrating and building the Star Wars franchise across our company. Our successful acquisitions of Pixar and Marvel prove Disney’s unique ability to grow brands and expand high-quality creative content to its fullest franchise potential and maximum value. We’ve leveraged Pixar’s terrific characters and stories into franchises across our company – from feature films to consumer products online games, major attractions in our theme parks, and more.

The 2006 Pixar acquisition delivered more than great Pixar content — it also delivered the means to energize and revitalize the creative engine at Walt Disney Animation – which was crucial to our long term success. Animation is the heart and soul of Disney and our successful creative resurgence will be on full display this weekend when Wreck-It-Ralph opens in theaters across the country. Our acquisition of Marvel three years later combined Marvel’s strong global brand and world-renowned library of characters with Disney’s creative skills, unparalleled global portfolio of entertainment properties, and an integrated business structure that maximizes the value of creative content across multiple platforms and territories. Our first two Marvel films – Thor and Captain America grossed a total of more than $800 million at the box office. This year, Marvel’s The Avengers grossed more than $1.5 billion to become the world’s third highest grossing movie of all time – and an important and lucrative franchise for us. We’re looking forward to a robust slate of new Marvel movies – starting with Iron Man 3 and Thor: The Dark World next year, followed by Captain America: The Winter Soldier in 2014.

And, as we announced previously, Joss Whedon is writing and directing Avengers 2 and developing a Marvel-based series for ABC. Pixar and Marvel both fit our criteria for strategic acquisitions – they add great IP that benefits multiple Disney businesses for years to come, and continue to create value well in excess of their purchase price. The acquisition of Lucasfilm is in keeping with this proven strategy for success and we expect it to create similar opportunity for Disney to drive long-term value for our shareholders. We’re clearly excited about this move forward. We believe we can do great things with these amazing assets….we have a proven track record of maximizing the value of our strategic acquisitions…. and we’re poised to do the same with this one. JAY RASULO, SENIOR EXECUTIVE VICE PRESIDENT AND CFO, THE WALT DISNEY COMPANY REMARKS FOR ANALYSTS REGARDING DISNEY’S ACQUISITION OF LUCASFILM LTD., AS PREPARED Lucasfilm, and more specifically the Star Wars franchise, fits perfectly within the Disney portfolio of intellectual properties and the strategic and financial implications of this acquisition are compelling.

Our team has spent a tremendous amount of time evaluating this deal and we have concluded we are uniquely positioned to maximize the value of Lucasfilm’s IP in a manner that can generate substantial value for our shareholders above and beyond the purchase price. In this transaction we will acquire rights to the Star Wars and Indiana Jones franchises, a highly talented and expert team, Lucasfilm’s best-in-class post production businesses, Industrial Light and Magic and Skywalker Sound, and a suite of cutting edge entertainment technologies. Our valuation focused almost entirely on the financial potential of the Star Wars franchise, which we expect to provide us with a stream of storytelling opportunities for years to come delivered via all relevant platforms on a global basis. There are a number of ways our company will derive value from Lucasfilm’s intellectual property—some of which can be realized immediately while others will accrue to us over time. George and his team have built Star Wars into one of the most successful and enduring family entertainment franchises in history, as well as one of the best selling licensed character merchandise brands in the U.S. and around the world. However, we believe there is great opportunity to further expand the consumer products business. Today, Star Wars is heavily skewed toward toys and North America.

We see great opportunity domestically to extend the breadth and depth of the Star Wars franchise into other categories. We also plan to leverage Disney’s global consumer products organization to grow the Star Wars consumer products business internationally. Let me note that in 2012 Lucasfilm’s consumer products business is expected to generate total licensing revenue that is comparable to the roughly $215 million in consumer products revenue Marvel generated in 2009, the year in which we announced our acquisition. With renewed film releases, and the support we can give the Star Wars property on our Disney-branded TV channels, we expect that business to grow substantially and profitably for many years to come. We also expect to create significant value in the film business. We plan to release the first new Star Wars film in 2015, and then plan to release one film every two to three years. These films will be released and distributed as part of our target slate of 8-10 live-action films per year, and will augment Disney’s already strong creative pipeline for many years to come. Lucasfilm has not released a Star Wars film since Revenge of the Sith in 2005.

However, adjusted for inflation, as well as growth in both international box office and 3D, we estimate the three most recent Star Wars films would have averaged about $1.5 billion in global box office in today’s dollars. This speaks to the franchise’s strength, global appeal and the great opportunity we have in the film business. We also expect to utilize Star Wars in other businesses including Parks & Resorts, in games and in our television business. These initiatives were also considered in our valuation. Under the terms of the agreement, Disney will buy Lucasfilm for $4.05 billion, consisting of approximately fifty percent cash and fifty percent in Disney stock. Based on Friday’s closing price of Disney stock, we expect to issue approximately 40 million Disney shares in this transaction. We continue to believe our shares are attractively priced at current levels and therefore, we currently intend to repurchase all of the shares issued within the next two years– and that’s in addition to what we planned to repurchase in the absence of the transaction. Our valuation of Lucasfilm is roughly comparable to the value we placed on Marvel when we announced that acquisition in 2009.

Our Lucasfilm valuation is almost entirely driven by the Star Wars franchise, so any success from other franchises would provide upside to our base case. I realize it may be a challenge for you to quantify our opportunity given the limited amount of publicly available information. But to give you some perspective on the size of the Lucasfilm business– in 2005, the year in which the most recent Star Wars film was released, Lucasfilm generated $550 million in operating income. We’ve taken a conservative approach in our valuation assumptions, including continued erosion of the home entertainment market, and we expect this acquisition to create value for our shareholders. In terms of the impact on our financials, we expect the acquisition to be dilutive to our EPS by low single digit percentage points in fiscal 2013 and 2014 and become accretive to EPS in 2015. Our capital allocation philosophy has been consistent since Bob took over as CEO. In addition to returning capital to shareholders, we have invested, both organically and through acquisitions, in high quality, branded content that can be seamlessly leveraged across our businesses.

Our acquisition of Lucasfilm is entirely consistent with this strategy, and we’re incredibly excited by the prospect of building on Lucasfilm’s successful legacy to create significant value for our shareholders. UPDATE (9:42PM ET): George Lucas and Lucasfilm president Kathleen Kennedy discuss the Disney buyout in this video: UPDATE (10/31 — 4:12AM ET): Disney Chairman/CEO Robert Iger talks about the Lucasfilm acquisition: PARTNER MESSAGE Disney to rename themselves to Buy N large by the year 2025 confirmed. Andrew Great just what we needed a fatter Disney as if Pixar and Marvel weren’t enough. Tim Hodge Hahaa! That is an excellent question Toonio Yikes! Guess George was thinking on teaching their kids about building their on wealths but I think he over did it. Now wonder if Lucas enterprises has such a huge revenue stream to divest the Star Wars franchise and where is the government sitting in all this an the anti-monopoly laws. On the other hand it seems the Star Wars franchise may continue after episode six after all, Meh, seems like Disney scoops up companies after their golden years, kind of like a vortex as they’re the same.

There’s lots of other good stuff brewing out there that doesn’t depend on nostalgia. T.D. “I felt a great disturbance in the Force… as if millions of voices suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened” Richard I guess Disney isn’t such a small world after all. I think it’s strange and cool. SnappingNero Conference call said they plan to release a new star wars movie every two years starting 2015. They will be pumping them out! After the prequels I think it’s great Lucas hands over the reigns to new blood, I just hope Disney dosen’t over do it. Hannah major companies owned or formally owned by Disney: -Pixar Monopoly much? Luke Disney doesn’t own Hearst, they sold Miramax, Soapnet no longer exists, and Hollywood Pictures hasn’t made a new movie since the mid 2000s. Just to Clarify, not to disregard your concerns. Justin Delbert My Aunt’s a Direct TV user; SOAPNet still exists. Disney Junior showed up, but it never replaced SOAPNet on Direct TV. They used to own DiC and Power Rangers, but they sold those back.

They still own a whole lot of Fox Kids shows though. Monopoly? Nah. I always felt whatever they don’t own, Time Warner or Viacom does. eman Disney Planning New 'Star Wars' Movie With Lucasfilm Purchase Disney Planning New 'Star Wars' Movie With Lucasfilm Purchase {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. Full Bio The author is a Forbes contributor. The opinions expressed are those of the writer. Loading ... This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe Get ready for new Disney Star Wars films. Disney chairman Robert Iger announced today that his company is buying Lucasfilm , home of the Star Wars franchise, for $4.05 billion. That's about the same amount of money The Mouse House spent on Marvel back in 2010 . With The Avengers grossing $1.5 billion at the global box office, that deal is already starting to pay off. Lucasfilm could be another big success story for Disney. Disney is looking at the massive franchise potential of the Star Wars universe.

Star Wars has 17,000 characters living on thousands of planets and, according to the press release, spans 20,000 years. That's a lot of spin-off potential. A new film is already in the works and slated for 2015 with plans to release a new Star Wars film every two to three years. Iger said in a statement: George Lucas is a visionary, an innovator and an epic storyteller – and he’s built a company at the intersection of entertainment and technology to bring some of the world’s most unforgettable characters and stories to screens across the galaxy. He’s entertained, inspired, and defined filmmaking for almost four decades and we’re incredibly honored that he has entrusted the future of that legacy to Disney. Disney already had a relationship with Lucas through the Star Wars ride at several Disney parks. Lucas recently helped update the ride which is always one of the most popular rides. With the purchase of Lucasfilms, Disney can now use all of its divisions to thoroughly exploit the Star Wars brands. Expect more TV shows, books and merchandise. [newsincvid id="23865192"] Lucas already earns about $215 million in merchandise revenue.

Disney expects to grow it in years to come. Look for growth in gaming (especially social and online) and on Disney XD. The purchase also gives the studio another firm foothold in boy toys. Before the Marvel purchase Disney's main boy line was Cars. Now it owns one of the biggest merchandise lines of all time. Lucas will continue as a consultant on the films and Kathleen Kennedy, who recently became co-chairman of Lucasfilms, will stay on as president of Lucasfilms. Lucas' last three Star Wars films were not popular with hard core fans but they made tons of money at the box office. The Phantom Menace was the highest-grossing (on an unadjusted basis) of all of the Star Wars film bringing in $983 million at the box office. Although Fox has traditionally distributed the Star Wars films, Disney will distribute them now. Even if Disney doesn't make The Avengers level new movies around Star Wars, plenty of fans (especially younger fans) will flock to the theaters. The purchase continues Iger's business model of buying companies with great content and incredibly smart, creative people. In 2006, Disney brought Pixar into the fold.

The purchase helped the studio produce box office hits like Toy Story 3 ($1 billion) and Cars 2 ($560 million). In 2010 Disney bought Marvel which not only gave the studio The Avengers but upcoming movies like the sequels to Thor and Captain America, future Avengers films and (gulp) Ant-Man. Disney also distributes films from DreamWorks which means the studio is now in business with George Lucas and Steven Spielberg . Could Disney screw this up? Sure. Star Wars fans tend to be a passionate bunch and they don't like to see their mythology messed with. Plus who wants to see a movie about Jar-Jar Binks or many of the other lesser-known characters in the Star Wars universe? But considering what a great job Disney has done with Marvel so far, it's safe to assume that this is another very smart move by Iger that's going to drive a lot of money to Disney's bottom line. Iger says the purchase won't increase how much Disney spends on film. Instead the next Star Wars film will be Disney's big 2015 tent pole film. The studio is clearly pleased to have a known and beloved franchise to build on.

It's much easier to take an expensive risk on a new Star Wars film than on an unproven story idea . Lucas has been looking to get out of Lucasfilm for the past 5-6 years with an eye to making smaller, more personal films. He started talking to Disney about having the studio acquire his company last year. Disney owns Lucasfilm: Will it have room for Star Wars fan movies? | Ars Technica Disney owns Lucasfilm: Will it have room for Star Wars fan movies? Lucasfilm belatedly embraced fan fic; Disney brought us 95-year copyright. reader comments Share this story "It's time for me to pass Star Wars on to a new generation of filmmakers," said George Lucas in announcing the sale of his company today. But there's a significant group of filmmakers unlikely to fare well now that the Star Wars franchise is Disney-owned: the amateur "unauthorized" filmmakers, who enjoyed relatively liberal copyright policies while they were making remixes and fan fiction based on the Star Wars universe. The Star Wars movies practically created their own genre of fan movies and fan fiction.

Since 2002, Lucasfilm has actually hosted " Official Star Wars Fan Film Awards ," offering recognition and prizes to fans who make their own films using Star Wars characters and settings. Many of those works were spoofs or commentary set in the Star Wars world. One of the most popular early fan movies was Troops, a knockoff of the TV show Cops. In the movie, Imperial Storm Troopers irritably scour the rough neighborhoods of Tatooine looking for various types of lawbreakers. (Droid thieves, of course, feature prominently.) In 2007, Lucasfilm even released tools that would more easily enable remixing of Star Wars content. A top Lucasfilm lawyer, Jeffrey Ulin, began speaking at conferences and to the media about the value of fan mash-ups and remixes. Those works were "part of keeping the love of Star Wars and the franchise alive... We're really trying to position ourselves for the next 30 years," Ulin told the Wall Street Journal in 2007.

The approach still had its critics—most prominently copyright guru Lawrence Lessig, who called Lucasfilm's authorized remixing a kind of "digital sharecropping," since Lucasfilm owned exclusive rights to anything produced with those tools. Still, it seemed to represent a step forward. While there are rules—no nudity or graphic violence is featured in the works—fan works were embraced to a far larger degree than at other companies with similarly famous properties. Certainly, Disney fans who make their own movie featuring Mickey Mouse are more likely to get a cease-and-desist letter from a Disney lawyer than an award. After all, it was Disney who famously lobbied Congress to extend copyright terms in 1998, so much so that some dubbed the new law the Mickey Mouse Protection Act. Perhaps no single company more than Disney bears more responsibility for the sorry state of the US public domain, which hasn't seen any significant works added to it in decades. For the most part, culture after 1923 has been frozen in a state of private ownership—mostly owned by the large media corporations that began rising at about that time. It's a shame.

More than any other modern work, Star Wars—with the explosion of fan creativity and enthusiasm it has produced—shows the need for a vigorous public domain. As Ars contributor Tim Lee noted today, if we had the copyright that existed at the time of the founders—14 years renewable once—the original Star Wars movie would have passed into the public domain in 2005. The sequels would have become public property in 2008 and 2011, respectively. It's hard to imagine that this hypothetical world would be one that's poorer, culturally speaking, than the one we live in today. With a 95-year copyright on corporate-owned works, we aren't scheduled to have a discussion about what the public might do with Luke Skywalker—and about the rich world of unauthorized spinoffs, sequels, and remakes that could be created—until 2072. Now that Star Wars is owned by a company so determined to stave off the public domain, we can't really count on it happening then, either. Promoted Comments

Question: What company purchased the rights to the Star Wars franchise in 2012?
Answer: Disney