Finances

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Date Submitted: 06/08/2013 12:47 PM

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Disney is not only concerned with the operations of their theme parks but also of their movie productions and any other investments they might be involved in. The company is always on the lookout or ways to compliment the way all of their projects are being handled.

Just recently Disney had the opportunity to acquire Lucasfilm which has had a tremendous effect on Disney’s financial planning. The affects could involve things such as costs, sales and other financial risks involved in the acquisition. Disney paid $4 billion dollars for the acquisition of Lucasfilm which will provide a tremendous amount of new opportunities and potential for new creativity for the entire company.

The purchase of Lucasfilm by Disney is the fourth largest deal so far. With such a large investment Disney has plans to expand a major portion of Lucasfilm which is the Star Wars series, which Disney has already started putting into motion plans to release a new movie approximately every two to three years. Disney was able make the purchase with half in cash and half in stock sales. One factor that had to be taken into consideration when planning the purchase of Lucasfilm was how was the purchase going to affect the cost of other things in the Disney Company. The purchase of Lucasfilm, Disney also acquired a visual effects company which will allow Disney the opportunity to produce higher quality films at a lower cost.

The effect on sales has not been determined at this time, but Disney is hoping that their sales will increase when the new Star Wars films are released starting in 2015. The company is also looking into plans of incorporating the Star Wars name into their theme parks. As with any type of major purchase or investment, there needs to be a tremendous amount of research done before anything is made official.

Disney needs to make sure that the new acquisition does not take anything away from the investments already in place. Disney already has a...