How Disney Is Making Marvel More Valuable

Updated
How Disney Is Making Marvel More Valuable

Is there anyone left who believes that Walt Disney isn't adding value to Marvel? Recently, the House of Mouse obtained all of Viacom's remaining distribution rights to four Marvel films: Iron Man, Iron Man 2, Thor, and Captain America: The First Avenger for an undisclosed sum.

The payoff ends a distribution arrangement that allowed Marvel to become a Hollywood power player at a time when investors didn't know the full value of comic book films, says Fool contributor Tim Beyers in the following video.

Previously, Disney was phasing out Paramount on a film-by-film basis, with Marvel's The Avengers the highest profile (and most profitable) solo effort to date. Now, every Marvel film property to which it has rights will be produced and distributed directly. Expect a modest boost to profits as a result.

More important for investors, Tim says, is that the deal is indicative of Disney's willingness to invest to make its Marvel properties more valuable. Deals to secure Joss Whedon to direct not only Avengers 2, but also Marvel's Agents of S.H.I.E.L.D., and Robert Downey Jr., for the next two Avengers films, fall in the same category, Tim says.

Now it's your turn to weigh in. Do you believe Disney's investments in Marvel will pay off over the long term? Why or why not? Please watch the video to get Tim's full take, and then leave a comment to let us know what you think.

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The article How Disney Is Making Marvel More Valuable originally appeared on Fool.com.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Walt Disney and Time Warner at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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