The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company. The Company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media.
The Avengers on pace to be Disney’s highest grossing film
After a big-time opening at the box-office this weekend, reports are speculating that Disney’s (NYSE:DIS) “The Avengers” could be the company's highest grossing film ever.
The Avengers, a mash-up of Marvel comic heroes, sold $200.3 million in domestic box office tickets over the weekend, easily topping the previous record of $169.2 million set by "Harry Potter and the Deathly Hallows Part 2" last July.
Disney – and Hollywood, for that matter – have been waiting for a hero like “The Avengers” to come along, with Disney hurting from its recent box-office flop “John Carter”, and Hollywood reportedly posting its worst year for ticket sales in 16 years.
Disney gained the rights to the legendary characters with its $4 billion purchase of comic book publisher Marvel three years ago. The three movies made with Marvel characters have grossed $1.4 billion worldwide.
With its strong start, “The Avengers” is projected to top the $1.07 billion in worldwide box office sales posted by “Pirates of the Caribbean: Dead Man’s Chest,” which has reigned as Disney’s biggest movie since 2006.
According to a Reuters report, Paramount could also benefit from “The Avengers” success, as under a 2005 distribution agreement between Paramount and Marvel, Paramount receives a fee for the theatrical distribution of the film, as well as the distribution of home video, internet and TV rights.
That agreement transferred to Disney when it acquired Marvel.
Disney and Paramount agreed in 2010 to amend the initial deal, giving Disney the rights to distribute Marvel-produced "The Avengers" and "Iron Man 3," the second sequel to the 2008 film that Paramount distributes.
That agreement stipulated that Disney would pay Paramount a $115 million advance against future fees that Paramount would have earned, according to Reuters.
Disney shares were up 1.30 percent Monday afternoon, trading at $43.48.