Disney Has Made Almost $25 Billion From Star Wars and Marvel, but Another IP Has Been Even More Lucrative
When Bob Iger was initially elevated to CEO of the Walt Disney Company following the ouster of Michael Eisner, his first order of business was to broker peace with Pixar.
At the time, Pixar was still an independent studio with whom Disney had worked to create some of the biggest box office hits in animation history. By the time Iger took the reins of Disney, however, the relationship between the companies had frayed.
Things got so bad that Michael Eisner created Disney Circle Seven Animation, a new studio whose sole job would be to create sequels to Disney-owned Pixar properties.
The turmoil with Pixar would eventually be the final straw for The Walt Disney Board of Directors. In 2005, they outsed Eisner and installed Iger- his first order of business? Making peace with Pixar.
Bob Iger’s Spending Spree Begins
On January 24, 2006, Disney agreed to purchase Pixar outright, not only ending the public battle between the two but ensuring that the peace would last.
Iger was hailed as a savoir by fans and media alike. But that was only the beginning.
Over the next decade and a half, Bob Iger would continue his spending spree, eventually purchasing Marvel, Lucasfilm, and 20th Century Fox.
Suddenly, the Walt Disney Company was transformed from a storied movie studio into an international conglomerate.
Being a Disney fan now meant following along with Luke Skywalker, Iron Man, and Jake Sulley, not just Mickey Mouse.
What Is Iger’s Legacy?
When Iger retired from The Walt Disney Company for the first time in 2019, his lasting legacy was that of a buyer.
As Iger has become a more divisive figure, so too has his decision to purchase non-Disney IPs and incorporate them into the company.
For some, Iger has saved Disney and positioned it for the future by ensuring that the company owns some of the biggest IPs in popular culture.
For others, however, Iger has diluted the Disney brand and taken the company away from its family-friendly roots. Others, including activist investor Nelson Peltz, have argued that Iger’s spending has put Disney on poor financial footing and caused many of the headaches caused by Bob Chapek.
Disney’s Return on Investment
In a new presentation to shareholders, Disney is attempting to push back on the narrative that Iger’s spending has been detrimental to Disney.
A graphic titled Enduring Franchises highlights our powerful IP and unique monetization capabilities, Disney breaks down the return on investment that it has gotten from various IPs.
Since purchasing Lucasfilm in 2012, Disney has gotten a 2.9x return on its Star Wars investment. Doing the math, that multiplier means that Star Wars has made Disney $11.6 billion over the last 12 years.
Marvel, meanwhile, has provided an even better return on investment. After paying $4 billion for the studio in 2009, Disney has been rewarded with a 13.2 billion return on investment.
Interstingly, while Disney did not give the full number for Pixar, Toy Story alone has been the second most lucrative franchise for Disney.
Toy Story has given Disney a 5.5x return on investment, with Disney noting that the franchise has resulted in five films, the Disney+ NFL alternative broadcast, and a plethora of theme park attractions.
Disney’s Most Lucrative IP Was Not Purchased
Interestingly, the most lucrative IP for Disney was created in-house. Frozen leads all Disney IPs with a 9.9x return on investment.
Taken together, Disney’s point is clear. Because of its spending and in-house creativity, the company has a stable of lucrative franchises that it can lean into.
After a difficult 2023 at the box office, Iger has publically stated that Disney will lean into its well-established franchises going forward.
So far, the strategy has worked well for Iger and Disney, and based on the results, it is tough to argue that the Disney CEO’s purchasing strategy has paid off.