Disney's social-media land grab
With the purchase of Playdom, Tapulous and even Marvel, Iger pays top dollar for a new generation of savvy customers.
Nobody can accuse Disney (DIS) chief Bob Iger of being stingy.
When he sees something he believes will help the venerable entertainment conglomerate evolve -- be it Marvel, Pixar or his latest bauble, social-media gaming developer Playdom -- he pays top dollar.
Over Iger's five-year stint in the top seat, Disney's acquisitions have totaled nearly $13 billion. Disney believes that's a small price to pay for a portfolio of brands that will help it attract a different generation of tech-savvy customers.
Like the Pixar and Marvel moves, Playdom -- which cost $563 million, plus a $200 million performance-based earn-out -- represents an opportunity for the Mouse House to modernize and expand its audience.
In the case of Marvel, Disney was acquiring properties that appeal to young men, a traditionally difficult demographic for the company to crack. Likewise, the Pixar purchase was an implicit acknowledgement that Disney's traditional animation division had plateaued and that the CGI studio was more finely attuned to today's audiences.
So, too, with the newest star in the Disney galaxy. By bringing Playdom into the Disney tent, the company gains a team well versed in new media. It also gets another bridge to the online world, one that brings with it several potential revenue streams. Disney plans to leverage Playdom by selling online goods and advertisements.
“It’s still in its early days, but if done correctly, it has the potential to be a high growth engine,” said Mike Hickey, an analyst with investment firm Janco Partners. “This could grow by 30 to 40 percent. Where else could you find that?”
Read more at TheWrap.
More from TheWrap:
- It's done! Tutor takes Miramax from Disney for $660 million
- Richard Branson to launch film & TV production company
- Hugh Hefner on Puritanism, Marilyn and the future of his iconic magazine
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.