When You Wish Upon A Death Star.

ecchi · 2012-10-31, 05:41 AM

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!

2012-10-31, 05:41 AM	#1
ecchi Banned Join Date: Oct 2003 Location: About to be evicted!!!! Posts: 4,082	When You Wish Upon A Death Star. 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!