Maybe it was the storm. Maybe it is the election. Whatever, we have some stellar news that’s just being processed incorrectly by the market or is only just now getting its due.
The most obvious of these is Disney’s purchase of Lucasfilms for $4 billion. I thought this was perhaps the greatest stroke of genius yet for CEO Bob Iger, and that includes the brilliant Marvel Entertainment buy a few years back. Immediately Disney’s stock got hit because the deal wasn’t accretive. Contrast that with the immediately accretive purchase of Warnaco by PVH, which caused PVH to go to $113 from $91.
I am not denigrating the market’s reaction to the PVH deal, especially considering that
PVH made fortunes when it bought Tommy Hilfiger not that long ago.
But people are totally overlooking what Disney can do with Lucasfilms. First, the franchise can
produce multiple films that sell worldwide. Remember, it is incredibly easy to do a line extension and spinoffs, particularly with “Star Wars,” but creating one from scratch–a la “John Carter”–is fraught with difficulty.
— Option Monster