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Aakanksha Guddo - SSSN - Group 10

Disney purchased Lucasfilm from George Lucas for $4.05 billion in 2012. Lucas had created the iconic Star Wars universe and wanted to ensure its future and see the story continued. Disney saw this as an opportunity to expand their entertainment franchises. Though Lucas wanted to retain some control, Disney could only agree to keep Lucasfilm's team intact if they had final say over the Star Wars direction. The deal strengthened both of their positions and has proven very profitable for Disney, making back their investment through just two new films.

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187 views10 pages

Aakanksha Guddo - SSSN - Group 10

Disney purchased Lucasfilm from George Lucas for $4.05 billion in 2012. Lucas had created the iconic Star Wars universe and wanted to ensure its future and see the story continued. Disney saw this as an opportunity to expand their entertainment franchises. Though Lucas wanted to retain some control, Disney could only agree to keep Lucasfilm's team intact if they had final say over the Star Wars direction. The deal strengthened both of their positions and has proven very profitable for Disney, making back their investment through just two new films.

Uploaded by

ANKUR PUROHIT
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Disney’s Purchase

of Lucasfilm Group 10
Aakanksha Guddo (PGP10063)
Arun Chaudhary (PGP10135)
Hassan Ahmed (PGP10205)
Kanika Bhagat (PGP10149)
Mayank Kashyap (PGP10093)
Shubham Sangwan (PGP10178)
Sejal Ved (PGP10230)
Lucasfilm
● George Lucas, was the filmmaker and mastermind behind the Star Wars universe
● Lucasfilm was created in 1917, it acted as production company and visual effect and
animation studio
● They have produce iconic films such as “Indiana Jones”, “Labyrinth”, “Willow” and
“Star Wars”
● They has created two animated shows
○ ”Star Wars: Forces of Destiny” web series released through Lucasfilms Animation on Disney’s
YouTube channel
○ “Star Wars Resistance” series airs on the Disney Channel
Disney
● Walt Disney was an American film producer, director, screenwriter, voice actor and entertainer
who along with his brother Roy Disney, founded The Walt Disney Company in October 1923
● In 1928 the first Mickey Mouse cartoon was released while in 1932 the first full-color cartoon
Flowers and Trees was released
● The Walt Disney Music Company was formed in 1949 and the first Disney park, Disneyland
opened in Anaheim California in 1955. In 1966, Walt Disney died at age 66
● The Walt Disney Company offers a diverse range of products and services such as
entertainment: feature films, music, websites, and television, parks and resorts: Disneyland,
Disney World and it is the largest media and entertainment conglomerate
● Robert A. Iger who was their CEO at the time, who began his career at ABC in 1974 and joined
the Disney senior management team in 1996. He moved up in rank until he achieved his current
position and is active as a board member of many organizations
The Player’s Perspective

George Lucas Robert A Iger

● Competitive Future
● Endure legacy
● Limited Autonomy
● Expand franchise
● Initial Star Wars characters
● Star Wars control rights
● Intact structure
Discussion
In early 2011, Robert was planning to diversify more after having acquired Pixar
and Marvel, enquired about Lucasfilm’s possible sale from George, resulting in a
rebuttal

In 2012, Lucas asked Kathleen Kennedy (a big name in hollywood) to be the co-
chairmen of Lucasfilm, and later head it after George’s retirement

George also worked on 3 more episodes of Star Wars, approaching Harrison Ford, Strengthenin
g BATNA
Carrie Fisher and Mark Hamill. He also worked on the script for the movies.

Lucas also decided to pitch in his digital studios, Skywalker Sound and Industrial
Light and Magic in the deal. Lucas wanted to have complete control over StarWars’
direction. Maximizi
Anchoring
ng Value
Robert countered by insisting Disney will have the final say, not Lucasfilm, he agreed to
keep the team intact at an offering of 4 Billion USD. Also, George Lucas was to be made
the creative consultant for Lucasfilm.
Reservatio
n
Value
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Resolution
Aftermath

After the release of two films Disney has made $1 billion on its $ 4 billion
investment
Money well spent
● Star Wars saga movie every year and stand-alone title (opposite year)
● Disney would earn about $1 billion just from box office
● $500 million in licensing and retail revenue
● TV spin offs like Star Wars: Rebels or Star Wars “lands” at Disney’s Florida and
California theme parks, or revenue sources like video games or books
● Disney would make its money back in eight years alone with the movies,
however with the licensing and other revenues it would cut the time dramatically
Key takeaways
● Building Trust
● Assessment of counterparts BATNA
● Strengthening own BATNA
● Defining targets and RV
● Creating Value
● Anchoring
● Claiming Value
● Focus on Joint Gains
● Power of Anchor
● Logrolling
Thank You

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