Great news today for one of my favorite Emerging Growth stocks! Disney (DIS) announced plans to be Marvel Entertainment (MVL) for $4 billion.
Walt Disney Co. agreed to buy Marvel Entertainment Inc. for about $4 billion in cash and stock, adding comic-book characters Iron Man and Spider-Man to Disney’s lineup of princesses and live-action stars.
Marvel investors will receive $30 a share in cash plus 0.745 Disney shares, the companies said today in a statement. The deal is Disney’s fourth-largest acquisition by announced total value, according to data compiled by Bloomberg.
The purchase gives Disney, the operator of theme parks and the ABC broadcast network, ownership of more than 5,000 Marvel characters. Films based on Iron Man, Spider-Man and Wolverine have pulled in hundreds of millions at the box office. Disney Chief Executive Officer Robert Iger said buying Marvel will allow Disney to extend the characters in its parks and stores.
Marvel closed last week at $38.65. The stock has already been up as much as 26% in today’s trading. I added Marvel to our Emerging Growth Buy List last November at $32.19 a share, so we have a profit of over 50% in last than a year. The stock has more than doubled from its March low.