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Lucasfilm to Drive Disney’s Film Business

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Success of Lucasfilm

Lucasfilm, a part of The Walt Disney Company (DIS), may boost the company’s film business with the release of Star Wars: The Last Jedi on December 15, 2017. The last film of the series, released at the same time last year, garnered more than $1 billion worldwide.

Lucasfilm, popularly known for producing successful franchises such as the Indiana Jones and Star Wars series, has produced business of more than $8 billion globally. In 2012, Disney bought Lucasfilm for ~$4.1 billion. After the acquisition, the studio launched two more Star Wars movies that went on to become huge successes at the box office, collecting more than $3 billion globally. After Star Wars: The Last Jedi, the company is expected to launch two more Star Wars movies in the next two years.

Lucasfilm acquisition driving other segments

Disney’s Consumer Products and Interactive Media segment may also gain from the newly released movie. The last two Star Wars movies boosted the merchandise business.

The company’s Parks & Resorts segment may also benefit from Lucasfilm productions. At Disneyland, the company has already started building a Star Wars-themed park, which is expected to open in 2019 and draw huge crowds.

In the last 11 years, Disney has spent nearly $15.4 billion to acquire Pixar, Lucasfilm, and Marvel—some of the most popular studios. The investments seem to be fetching rich dividends for the company, generating business of more than $25 billion. It remains to be seen how these acquisitions will help the company compete with film production peers Comcast (CMCSA), Paramount (VIAB), and Columbia Pictures (SNE).

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