Disney's Star Wars Acquisition: The Costly Reality

TLDRDespite Disney's acquisition of Lucasfilm for $4 billion in 2012, the revenue generated by Star Wars movies has fallen $2.8 billion short of covering the purchase cost, according to recent financial statements. The methodology used to calculate return on investment has been questioned, as it only factors in box office revenue and not the actual cost of making the films. Disney's strategy of relying on merchandising and licensing deals also raises concerns. After 12 years, Disney has still not made its money back on the Star Wars franchise.

Key insights

💰Disney has not made back the $4 billion it spent acquiring Lucasfilm.

📉The revenue from Star Wars movies falls $2.8 billion short of covering the purchase cost.

🧮The methodology used to calculate return on investment has been criticized for not factoring in the actual cost of making the films.

🏭Disney's reliance on merchandising and licensing deals raises concerns about their profitability.

🤔After 12 years, Disney still has not made its money back on the Star Wars franchise.

Q&A

How much did Disney pay to acquire Lucasfilm?

Disney paid $4 billion to acquire Lucasfilm in 2012.

Has Disney made back the cost of acquiring Lucasfilm?

No, Disney has not yet made back the $4 billion it spent to acquire Lucasfilm.

What is the methodology used to calculate return on investment?

The methodology used by Disney only factors in box office revenue and does not consider the actual cost of making the films.

What are the concerns regarding Disney's reliance on merchandising and licensing deals?

There are concerns that relying heavily on merchandising and licensing deals may not be sustainable or profitable in the long run.

How long has it been since Disney acquired Lucasfilm?

Disney acquired Lucasfilm in 2012, making it 12 years since the acquisition.

Timestamped Summary

00:00Disney acquired Lucasfilm for $4 billion in 2012.

00:19Box office profits from Star Wars movies have fallen $2.8 billion short of covering the purchase cost.

01:23The methodology used to calculate return on investment has been criticized for not factoring in the actual cost of making the films.

04:57Disney's reliance on merchandising and licensing deals raises concerns about their profitability.

10:31After 12 years, Disney has still not made its money back on the Star Wars franchise.