Disney's ROI on Lucasfilm

[Soeht]

So here's a question: Do you think Disney will break even on the Lucasfilm purchase with Rogue One?

Let's look at just income from the box office since that's the easiest metric to look at. All money after the movie budget goes to Walt Disney Motion Pictures. There are contracts to pay a bit of that to certain people involved in the production, actors and staff, but we can assume 100% goes to Disney since that's not the norm.

So here's some numbers:

• Disney's purchase of Lucasfilm - $4,060 million
• Episode VII net budget - $245 million
• Ep VII Box office - $2,066 million

Just with Episode VII, Disney has just $2.239 billion to make to break even on the Lucasfilm purchase. Counting toys, games, books, and other income from the Star Wars brand, I imagine a couple hundred million could be shaved off.

Still, do you think Rogue One could come close to the box office income of Episode VII, or will Disney need to wait until Episode VIII to break even?

 

[Jsc]

I can say with a welcome smile that Disney is very happy with the StarWars franchise and looks forward to continuing to invest in their shared success together.

 

[Kenrath]

[member="Soeht"]

If Rogue One is even half as good as the trailer looks I think it could come very close to the amount VII if not more. Personally I get a better feeling from RO than I did TFA.

 

[Serenna]

I think they will eventually break even and really start with the profit. I mean they spent under 300 million for a movie that did its budget back think it would be fair to say in one month. Rogue One is anticipated, the Han Solo/Boba movie is wanted cause people love boba. It might not be right away but it could be a safe assumption by the end of this trilogy

 

[Darth Kentarch]

Do i think Disney will make their money back? Well yeah. Seeing how the plan to make a Star wars movie every year, past 2020. Get ready open your wallets people.

 

[Tefka]

This doesn't take marketing into account, but yeah. Disney wants more Star Wars, we're gonna get more Star Wars.

 

[Kadala Kotyc]

Considering the cost of advertisements, production of toys/apparel/whatnot, and park rides/attractions, there's a lot more to it than just the movies. Of course, the latter of what I just mentioned also bring in their share of profits. I wouldn't be surprised if Disney finished making their money back by the end of the year.

 

[Zonia Kalranoos]

Spoiler

Just look at the prices of Disney stocks. The market for this stock is extremely bullish now.
Last financial statement issued reports record profits, like highest ever, in entire history of the company.
I am starting to think George did not charge them enough, not that they won't be able to break even some time in the very near future.

 

[Ellie Mors]

Counting toys, games, books, and other income from the Star Wars brand, I imagine a couple hundred million could be shaved off.

Merchandise from SW actually made more money than all of the collective films for each individual release. On episode VII alone they anticipate over 5 Billion USD in sales over the next 12 months (article), which is clearly more than the movie's earning and is more than the cost of the entire franchise they bought.

On the movie and merchandise alone, Disney has already broke even (or will in the coming months) and possibly even came out with a profit. Plus factor in the stocks and you see huge profit numbers.

 

[Onrai]

Who cares? Disney's gonna make a profit off the Star Wars franchise. Whether the Rogue One movie or Episode VIII drive it over the edge, I don't know - all I do know is that it will turn a profit.

 

[Soeht]

On episode VII alone they anticipate over 5 Billion USD in sales over the next 12 months (article), which is clearly more than the movie's earning and is more than the cost of the entire franchise they bought.

Star Wars is definitely a toy empire, then. I had thought that kind of money in the $8 bil USD would have been made over a very long term.

 

[Ellie Mors]

[member="Soeht"]
Yep. Star wars is, in terms of theoretical revenue, worth tens of billions of dollars. George's price tag really only would have considered movie revenue/cost if we are to look at that cost as being something where any kind of accounting was looked into. Considering most/all of it went to charity, though, I think he just wanted a really big number and low-balled it.

 

[Serenna]

which is fine, I mean honestly there are very few charities that make millions let alone get billions donated. And I know I have bought plenty of merchandise which Mel Brooks said it best that is where the real money is

 

[Soeht]

[member="Soeht"]
Yep. Star wars is, in terms of theoretical revenue, worth tens of billions of dollars. George's price tag really only would have considered movie revenue/cost if we are to look at that cost as being something where any kind of accounting was looked into. Considering most/all of it went to charity, though, I think he just wanted a really big number and low-balled it.

Lucas also couldn't have named too high of a price or else Disney wouldn't have made a deal.

It seems natural for business to sell of things at low prices. The industrial plant I work for got sold for a value that was made up for in profits with just a few years.

 

[Ellie Mors]

[member="Soeht"]
That is true. I think the most he could have asked for was possibly 6 Billion USD, because Disney would have been looking to only pay as much as they could earn back after a single movie. And considering Disney earned 52 Billion USD during the 2015 financial year, even 4 billion USD is a huge cost for them.