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Investors who owned stocks in the 2010s generally saw big gains. In fact, the total return of the SPDR S&P 500 (NYSE: SPY) since August 31, 2009 is 327.9%.
That day in history Walt disney co (NYSE: DIS) announced a massive $ 4 billion buyout of Marvel Entertainment, which remains one of its largest acquisitions to date.
Marvel buyout: Investors see Disney’s Disney + streaming platform as one of the main reasons to own the stock in the coming decade. However, Disney + would be nothing without content, and Marvel content has been one of Disney’s highest-grossing and popular content of the past decade.
At a price tag of $ 4 billion, Disney has certainly paid a high price for Marvel. But under Disney ownership, Marvel’s valuation has grown to around $ 19 billion in the 11 years since the takeover.
When the Marvel deal was announced, Disney shares were trading at around $ 26 in mid-2009.
Disney was in the early years to fend off upstream streaming competition Netflix, Inc. (NASDAQ: NFLX), but Disney was still about a decade away from launching its own streaming service.
Three years after the Marvel deal in 2012, Disney announced a $ 4 billion buyout from Lucasfilm, the owner of the Star Wars franchise. Disney closed the 2010s with one last major acquisition, the biggest of the decade. Following a bidding war with Comcast Corporation (NASDAQ: CMCSA), Disney acquired the majority of 21st Century Fox’s TV and film assets in 2019 for a whopping price tag of $ 71.3 billion.
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Disney’s Marvel content has been a big reason Disney + got off to such a great start in its first year. As of August 3, Disney + had 60.5 million paying subscribers, up from 33.5 million as of March 28.
As a result of the deal with Marvel in 2009, Disney shares rose steadily, reaching $ 122 in mid-2015. After nearly four years of trading between around $ 90 and $ 120, Disney hit new all-time highs in early 2019 before Disney + launched. Disney hit its decade high of $ 153.41 in November right after launch.
Disney in 2020, beyond: After falling as low as $ 79.07 in March 2020, Disney shares have since rebounded to around $ 140.
Investors who bought $ 1,000 of Disney shares on the day the deal with Marvel was announced in 2009 would now own a stake worth $ 5,682, assuming the reinvestment of dividends.
Looking ahead, analysts expect Disney to consolidate over the next 12 months. The average price target among the 22 analysts covering the stock is $ 140, which suggests a decline of 0.1% from current levels.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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