Week 3 Assignment 1: The Case of Disney and Marvel
Submit by end of Day 7
Value: 100 Points (2% of your Final Grade)

Overview:

Theproject requires students to perform independent research and analysison the acquisition of Marvel Entertainment by The Walt Disney Company.You may make use of any resources to which you have access to researchthis acquisition. However, each resource must be relevant and reliable,and you must cite your sources where appropriate.

Directions:

Your final product should be a 1 page paper (double-spaced, Times New Roman 12 pt. font).

First,briefly discuss the businesses of the two companies and their positionswithin their industries. Then, answer the following questions:

1. When was the acquisition announced? What were theexplicit reasons for the acquisition? Do you believe there could bereasons for the acquisition other than those explicitly discussed by thecompanies or by the business press?
2. How did the market react on the day of theacquisition announcement? Did Walt Disney’s stock price decrease orincrease? Why do you believe the market reacted the way it did? Relyingon the market reaction, do you believe that the project undertaken byWalt Disney (the project of acquiring Marvel) increased theshareholders’ wealth for Walt Disney? Why or why not?
3. What was the form of payment in this deal?
4. Did the acquisition help/hurt Marvel’s competitors?Why? Justify your answer by examining some stock market data forMarvel’s competitors.