This Disney-Owned Studio Is Raking in Cash -- And It's Just Getting Started
Former Disney (NYSE: DIS) CEO Bob Iger, who stepped down in 2020, was a visionary leader who expanded Disney's operations through several acquisitions. He spearheaded the purchase of animation studio Pixar in 2006 and Lucasfilm in 2012, both of which have added many moneymaking franchises to Disney's repertoire. But the premier studio he had the foresight to acquire was Marvel studios in 2009, and since then, it's become the highest-grossing film studio in the world. Here's what it's been doing for the company and why it's so great for the stock.
Marvel creates comic-book superhero action films, and Disney takes that a step further with theme park add-ons and consumer products. Disney acquired Marvel for $4 billion in 2009, and Marvel has released 29 films in the 13 years that Disney has owned it. Marvel releases have grossed more than $26 billion since then, more than any other film studio.
Marvel, or the Marvel cinematic universe (MCU), is important to Disney in several ways. The first, of course, is ticket sales. Marvel's first 2022 hit, Doctor Strange in the Multiverse of Madness, was released in May and has been the second-highest-grossing film of 2022 so far, with nearly $1 billion in sales. Marvel has produced the three films with the highest-grossing domestic opening weekend sales since theaters reopened, which include Doctor Strange in the Multiverse of Madness, Spider-Man: No Way Home (which was released by Sony Entertainment in a revenue-sharing arrangement with Disney), and Thor: Love and Thunder, which was released last week and has been in the No. 1 spot since. It's notable that all of these movies are parts of already existing franchises. Many of the studio's characters have been used to create more film hits, nearly no-brainer bets for the studio. When Disney bought it, it bought almost limitless potential for new films -- and more. It's been worth far more than the original purchase price.
Source Fool.com
