OUR THOUGHTS on the WALT DISNEY COMPANY May 7Th, 2015
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EXETER TRUST BUILDING THE FOUNDATION OF YOUR FINANCIAL FUTURE OUR THOUGHTS ON THE WALT DISNEY COMPANY May 7th, 2015 Basic Information The Disney Brothers Cartoon Studio was founded on October 16, 1923 by Walt and Roy Disney. Now known as the Walt Disney Company, the studio is one of the largest entertainment and media enterprises in the world. There are five business segments: media networks, parks and resorts, studio entertainment, consumer products, and interactive media. Disney is headquartered in Burbank, California. Charts Below is a chart showing the performance over one year. The S&P 500 Index performance is also shown for comparison. Exeter Trust Corporation 7945 MacArthur Boulevard Suite 218 Cabin John MD 20818 Voice 301-652-1212 [email protected] Fax 240-396-6652 EXETER TRUST BUILDING THE FOUNDATION OF YOUR FINANCIAL FUTURE Our Thoughts Disney is already extremely successful. The reason they are poised to do even better in the future is by way of two large acquisitions they made in the last six years: Marvel Entertainment and Lucasfilm. The Marvel Cinematic Universe, a subsidiary of Marvel Entertainment, has been immensely successful since it began in 2008. Disney bought it in December 2009. It has since grown into the United States’ highest grossing film series at $7.4 billion in total box office revenue since inception. Internationally, it is second to the Harry Potter movies by only $400 million. The movies have done so well that Marvel is planning to release eleven more over the next four years. Success at the box office carries over from Disney’s studio entertainment segment into the other four segments as well. All of the merchandise and multimedia that coincide with the release of each movie is additional revenue. Disney also acquired Lucasfilm in 2014. Lucasfilm is the creating studio of the fifth highest grossing film series, Star Wars. The studio will be releasing the first Star Wars movie in a decade later this year which will be followed by several more. Disney essentially has two massive film series on their hands with unlimited opportunity. We believe Disney is a very valuable long term investment. Tommy Chapman Financial Analyst Page 2.