When You Wish Upon A Death Star.

[ecchi]

The second biggest news story this week is the sale of LucusFilms to Disney. They paid four billion dollars for the franchise with the intention of re-booting the Star Wars franchise and releasing three new films. Their reason for being prepared to pay this much money is that so far Star Wars and it's marketing have made four and a half billion dollars.

But that is since 1977, IE over 35 years! Now the usual rule is that when you buy a company you expect to make 10% of the purchase price every year. From these figures Disney will make about 3.2% per year. And that does not take into consideration the fact that a disproportionately large percentage of the profits were made in the first few years after the release of the first movie, they cannot hope to be making anything like those profits again regardless of how good the new movies will be. So they are looking at about 2% per annum return on their investment. And to make even this much money they need (and fully intend) to continue the franchise by making more Star Wars movies. This will cost them several hundred million more!

So how the bloody hell do they justify spending that much money on the franchise? They could have made more out of their 4.5 billion simply by putting it in an interest bearing savings account at a bank, and that is a notoriously low profit way of making money!

[Cleo]

Episode 7 will be two hours of Jar Jar Binks celebrating.

[Greenguy]

I honestly can't wait for an all Star Wars theme park to open

[JustRobert]

Originally Posted by Greenie

I honestly can't wait for an all Star Wars theme park to open

And this is why Disney paid 4 billion for all the properties involved with Mr Lucas.

It's not just the star wars movies it's: Indiana Jones films, Industrial Light & Magic, Skywalker Sound, video games division, and most importantly - Licensing & Merchandising (something Disney clearly knows the value of)

It will take at least 4 yrs to build a Star Wars park. This will be perfect timing for 4 generations in my family to enjoy

[ecchi]

Originally Posted by JustRobert

It's not just the star wars movies it's: Indiana Jones films, Industrial Light & Magic, Skywalker Sound, video games division, and most importantly - Licensing & Merchandising

The previous profits from Licensing & Merchandising were included in the 4.5 billion, so future earnings from this were included in the 2%.

Industrial Light & Magic, Skywalker Sound, video games division are all different companies, I don't think they were included in the deal (when Lucas was interviewed he sort of inferred that selling the film company gave him more time to run these other companies). However even if I am wrong - the 4.5 billion was the entire profits of the company/ies sold, so again, even with these, we are still looking at 2% PA.

The Theme park, if it happens, will be no more profitable than opening another Disneyland somewhere there is not already one, so that is not going to make any more money than they could have made without buying Lucasfilm.

So that just leaves the Indiana Jones films, which, although profitable, are not going to make that big a difference to the bottom line. Say 2.2% PA rather than 2%.

[MeatPounder]

It will be a great musical!
Star Wars VII, The Undiscovered Profits

[JustRobert]

I believe I read the subsidiaries are part of the deal. Lucas was still going to be involved with everything, he was just putting it into hands that will keep what he created around for generations to come. Sometimes it just easier to purchase a company that works brilliantly then investing money to compete with it. Disney learned this with Pixar.

I disagree on the theme park issue only because of what the Harry Potter park has done for Universal (building another in California and Japan). By adding a seperate Star Wars park to the others in Florida would give another reason for families to come stay at the magic kingdom and stay longer, all in the fight to be the number 1 tourist destination.

[bDok]

With a stars park I would go check that out no matter where they put it. I'm fine with them making new movies. I'd rather they take a swing at it then not.

[Greenguy]

Originally Posted by JustRobert

...It will take at least 4 yrs to build a Star Wars park. This will be perfect timing for 4 generations in my family to enjoy

May 2017 will be the 40 year anniversary of the 1st movie

[RedCherry]

Originally Posted by Greenie

May 2017 will be the 40 year anniversary of the 1st movie

Man that makes me feel old. I remember going to the theater in high school, and seeing it 6 times. I used to have every line memorized, it still is my all time favorite movie.