Industry with 6 blockbuster movies while disney was

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industry with 6 blockbuster movies, while Disney was looking for a driving engine to increase sales. The result was that Steve Jobs “exchanged” expensive stock into a che aper stock, and a transaction like that might look decretive to Disney´s shareholders. However, there was a strategic angle in this acquisition. Year Target Deal Size Premium Payment 1996 ABC 19 billion USD 27% 60% Cash + Stock 2006 Pixar 7.4 billion USD 3.8% 100% Stock 2009 Marvel 4.3 billion USD 29% 60% Cash + Stock As a matter of fact, Disney paid $59.78/share to Pixar by giving Disney’s stock. The premium over Pixar’s stock price is at 3.8% (the share price was $57.75 on Jan, 24th). Considering that this deal took several months to complete and the stock price surged 10% since the beginning of 2006 due to the speculation over this deal among investors, we could consider the real premium to potentially exceed 10%. However, considering that Disney paid much more premium to the target companies’ shareholders when they merged ABC and Marvel, this 10% could be considered as “cheap”.
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