Walt Disney Co. Buys Marvel Entertainment Inc.

By August 9, 2009 investing No Comments

By now you know that Disney (DIS) has agreed to purchase Marvel (MVL) for about $4 billion in cash and stock. Good deal for Disney no doubt. Marvel had languished for decades simply selling comic books until it started capitalizing on its characters through movies and licensing deals.

I think the best years were ahead for MVL. It had, what Warren Buffett likes to call, a strong economic moat and although it was slightly overvalued given its current earnings, it was positioned quite nicely for some fairly hefty growth in the coming years.

I think if the deal goes through, Disney will make out like a bandit.

I’m looking forward to the Spider-man roller coaster and Wolverine waterslide at Disney World.

About Mark Hing

Mark Hing is President of Aptus Communications Inc., a software and consulting company that specializes in bringing proven investment strategies and methods to individual investors. He has published numerous articles, taught at colleges and large corporations, presented papers at a variety of technical conferences and been the editor of a monthly technology magazine called, "Computer Sense." He is also the author of, "The Pragmatic Investor," book.


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