Disney Star Wars loses 2 Billion


https://www.youtube.com/watch?v=WFQPuOKEbLg

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Another day another bullshit youtube post , so what about licensing? The video games? Merch ? And you do know they didnt pay for lucasfilm in all cash , half was stock , i think its safe to say disney has made back the money on there investment

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Nice guessing

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What part ?

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All of it?

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Lucasfilm Ltd. LLC is an American film and television production company that is a subsidiary ... Francisco in 2005. Disney acquired Lucasfilm in December 2012 for $2.2 billion in cash and $1.855 billion in stock.

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burn

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Stock dilution, also known as equity dilution, is the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders.

So you can say it is stocks but it is still other peoples money that they will want a return on. It is still 1.8 billion of actual money. Those people who had there stock diluted will have done so under the presumption they will have it returned in actual money or profit or some other way. It is still actual money.

All you have proved is they still paid 4 bilion for Lucasfilm.

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Do you have access to Disney accounts. I'll say no. So everything you said is a complete guess based on nothing.

So all articles and current numbers are wrong but you are right.

As it stands the numbers don't add up

We know you love to shill for Disney even though you won't see a penny of it.

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All articles ? What from people on youtube that hate disney , why dont you do more research on reputable sources such as forbes, the economist, cnn etc , all claiming that disney are in or close to making a profit.

So whats your agenda then if im shilling ? Does it make you feel better ?

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Gee, I posted a Forbes link on Disney finances to you once, and you said Forbes was shit.

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Do the articles have access to disney accounts ? Do you ?

So everything they said is a guess and they are wrong , thanks for confirming that.

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Do you?

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What a school playground argument.

"i'm not guessing, you are" My dad is bigger than your dad. Thats a pretty poor reply.

If you are so adamant on your numbers then bring proof to the table.

No, no one has access to Disney accounts, obviously, but it is wildly known that Lucasfilm was sold for roughly 4 Billion, now how that is broke down is pretty irrelevant. either way the number is still 4 Billion. The movies have only made a profit of about 1.5 billion, those numbers can be easily googled in many articles but of course you won't believe them. Each park is about a billion each to construct. 2 of those and reportedy a 3rd in construction (maybe).

Star Wars games have been licensed by EA for decades and whatever Disney is receiving for the games certainly won't be in the billions. The toys are a complete disaster and again whatever they have made on them again won't be in the billions.

Like i said, the numbers don't add up. These numbers can be googled and compiled yourself.

Again you won't believe it anyway no matter where the information comes from.

No way on this earth have Disney made a profit on Star Wars. If they have it is pennies.

I use the term shill because no matter what people present you defend Disney no matter what. You can disagree with them you know, just thought i would tell you. Think for yourself for once not what Disney tells you

edit - and as shown below i didn't even factor in running costs. How much are they paying the the Lucasfilm employees, Galaxies Edge employees, that certainly won't be cheap. Tiys they wlll only see part percentage of any money generated, the majority will goto Hasbro.

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Initial 4 Billion dollar investment + Each film production cost and marketing cost (TFA: Production cost: $258.6 million (net) + Marketing: est. $223M + TLJ: PC: $262M + M: Est $200M + Rogue One: PC: $265M + M: 45M + Solo PC: 250M + M: Est $75 + TROS PC: $275M + M: (unofficial but comparing to TFA and TLJ) $200M + The Mandolrian: PC: $15 Million per episode x 8 Episodes + M: Est 5 Million total) = Total investment of $6.178 Billion (not counting the production cost of 1 billion for disney plus). And this also does not account for any licensing fees or royalties for OT Content to George Lucas or factoring in the cost to Run Lucasfilm or Disney Plus. Staff and costs of Lucasfilm are not tied into the films' production costs. The staff and business are a constant.

Now for total Box office . Total Gross from ticketing sales: TFA: $2.066B + R1: $1.056B + TLJ: $1.32B + Solo: $393M + TROS (as of now) $927M + Gross from Disney +Subs so far (10 Million x $6.99 per month for 2 months)Est total $139M = $7.152B. Now here is where things get tricky. The theaters get anywhere between 45% to 60% of the ticket sales, depending on country. For the sake of giving star Wars the edge let's go with the low end of the percentage. $7.152B x.45 = a total of $3.218B for Disney Star Wars Box office gross.

So $6.178 invested - $3.218B grossed (before taxes) = est -$2.96 Billion. Again this is not even counting the cost of running Lucas Film, Disney Plus, or the cost of launching disney plus.

So unless they have made over 3 billion in merchandising sales on Sequel Trilogy content (after the toy makers take their share of the profit which is usually about half). Meaning unless there has been over $6 billion dollars worth of merchandising sales (highly doubtful) Disney is still negative billions on there investment. Safe bet is right now they are about still over $2 Billion in the negative.

If you really break down the numbers it isn't looking good for Star Wars

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That’s if you look at it short term , which is still impressive considering the merch and box office takings after only 6 years

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Don't forget the tax on the revenue.

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True, I did not factor those in because I was trying to give every edge I could to Disney and Lucasfilm. Even neglecting several points that hurt there profit numbers, it is still not anywhere near the success story it should have been. Anyway you try to slice it, these movies and franchise are failing. They might be failing slowly and disney just might break even when all is said and done; but they will barely make a profit and the IP will be as dead as Transformers.

But who knows for sure, they might somehow bounce back.

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being still over $2 billion in the red 6 years 5 movies and 1 show is not impressive numbers. Especially considering that it is obviously losing steam and wide appeal. It might be another 10 years before they break even and that is only if there are still a good number of consumers that, like you, still enjoy there content.

But if you consider that Star Wars was until 6 years ago one of the strongest IPs on the planet which should have been soaring head and shoulders above Marvel, this is looking more and more like a complete franchise disaster.

but I might be viewing it that way because of bias. I have wanted to see disney era star wars fail since I watched TFA and knowing they are still frightfully negative and have burned a lot of the good graces with Star Wars fans has me viewing every little hiccup as a sign of utter failure. It could be an utter failure but it is not yet, but that will depend on how many hiccups keep happening.

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And one more point, the total take would be good if 1. they had not invested so much, maybe cut the production cost for each film in a half and 2. were not on a clear downward trajectory. If Rise of Skywalker made as much as or more than TFA it would be officially a success story. the fact that it looks like it might under-perform worse that TLJ it is a clear sign of trouble

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How was it the strongest IP 6 years ago ? No movies , hardly any toys , dude you sound so desperate to put a negative spin , as we have discussed in the past we dont have access to the disney accounts so all this talk is pointless, and all assumptions, wishful thinking , on your part , it amazes me how much info the haters have thats always swings in favour of there agenda, its disneys issue, which im sure there comfortable with. Star wars will be around for a long long time under there stewardship, look forward to the future especially with Feige on board

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I already admitted to my bias, and you don't have access to that information either, so it is as much as an assumption on your part not just mine. This is a 100% totally hypocritical statement from you.

And no 6 years ago it was still a strong IP if it was not TFA would not have made over 2 billion dollars. That is just asinine to say otherwise and actually contradicts your own points.

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"How was it the strongest IP 6 years ago"

Your kidding right, you have to be trolling.

Star Wars is literally the biggest movie IP in cinema history, it changed the face of modern cinema. It has the largest fan base on the planet, everyone knows what Star Wars is.

Ahh i see we are back to the fans being haters again, you are so predictable and boring. Yeh i'm sure Disney are comfortable not making any money, yeh of course they are.

You look forward to Star Wars being hidden behind a paywall? All there stuff is gonna go to Disney+ with the occasional movie.

What you don't ever realise as it never sinks in is that if they had actually not pissed the fanbase off and respected the OT characters, the haters as you call them would have bent over backwards and supported it, they would have thrown money at Disney but no it is the haters fault, everytime you say that now i'm gonna correct you.

You wanna know how bad Disney Star Wars is. I'm not gonna mention the films, the parks, the actors, the money. San diego comic con, i was there and then again at New York. Every new original Star Wars toy/figure was bought up on pre order and/or sold before the weekend was out. Prequel trilogy did quite well also as peope like Anakin and Obi-Wan, Padme and Qui-Gon. Unsurprisingly and quite laughably the new stuff didn't sell and there was only a couple of figures for collectors, the original trilogy had hundreds in the line up. That tells you everything you need to know about where Disney Star Wars is. If 3rd party acton figure designers are only doing OT and not DT then it is already game over for Disney. That s here the serious money is.

Disney have a long way to go to make good will with fans, sorry haters, no i'm not sorry, fans.

Kevin Feige is reportedly coming on board, why? I thought KK was doing amazing work.

Star Wars fans don't have an agenda, they just want good Star Wars movies, that is it, end of story.

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so before the purchase where was star wars? what was it doing? was there movies? no , mech,mmm hardly any, TV shows ,yes ,thats about it, how on earth is that a strong IP?

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You have literally no clue, have you, you are the fan Disney wants. Clap along to there tune.

Yes there were no movies. So what, that is not the be all and end all of fandom.

You could put the original trilogy on cinemas right now and they will be packed out. Hence why when Force Awakens was released it made 2 billion, hmm i wonder why that was.

I don't think you quite realise how large the fandom is, there is no fandom for any pop culture that will be larger than Star Wars.

Now to your question. If Star Wars was no where why did Disney buy it. Do you think they bought it because they thought they could make it better, don't be stupid. They bought it because it was Star Wars and it literally had a license to print money based off the name alone.

At every comic con i see people spend thousands on action figures and collectibles. No merch, you are definately trolling now. Merch for Star Wars before Disney was never ending, why, because it sells and still does, well the OT stuff anyway.

I'm actually positive now you haven't a clue what Star Wars is and means, you cannot call yourself a fan and then in the same sentence say there was no merch and that it isn't a strong IP.

Lego, computer games, board games, hundreds upon hundreds of books, comics, online games, more fan clubs than there are countires, my god there is even one just for storm troopers. You only need 3 films, you know one of the greatest trilogies ever made, you don't need more to keep people interested.

In 20, 30 years people will still be watching, buying and talking about the OT, that is fandom, that is how powerful an IP Star Wars is. Disney stuff won't be mentioned in the sae breath.

You are officially having your fan card removed for that post. Stay with Disney that's where you belong.

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Wow , what an arrogant douche bag , what an idiot , you live in your own little bubble , star wars is more popular at this moment in time than it was in 2012, not saying it wasnt popular im saying the IP wasnt that strong then because things were stagnant, all we had was the tv shows, and for me i dont care who its made by or who owns it , i just love star wars so ill watch pretty much anything good or bad , its been that way since a new hope for me , the Christmas special , droids , the good the bad , ill still watch it

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Don't worry, Disney will get even with Lucas when their stock price finally tanks.

Clownfish TV does a lot of fun stuff about what's happening inside the parks. I think one of them used to work at the parks, and gets some perspectives on what's going-on from contacts still working there.

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Original source:

https://practicaleconomics.org/disney-star-wars-the-finances/

The table provides a succinct summary of their analysis:

https://practicaleconomics.org/wp-content/uploads/2019/10/image-8.png

Doesn't include some revenue streams, like streaming and gaming, but it's clear they haven't paid off the initial investment yet.

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that's funny, because some guy on V2 posted almost the exact same numbers

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You mean someone had access to an excel spreadsheet and put some fake numbers in to meet an agenda? Wow, then it must be true

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You can tell thats utter bullshit considering the amount they made in merchandising in 2015, 2016, 2017

https://www.campaignlive.co.uk/article/star-wars-force-awakens-set-generate-5bn-merchandise-sales-first-year/1377297

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Key words "set to generate", not has generated or will generate.

Nthing in that article is about Disney, it is what cae before. That number is a projection based off previous years.

Also, revenue is not profit.

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Let’s say you are correct , this is a long term investment, there will come a day in the near future when it does start to make Disney money , it’s been 6 years since the acquisition, it’s only a matter of time before its profitable, and don’t forget only 2.2 billion was spent in cash the rest stock

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You have changed your tune. You have been adament it has already made its mney back and more. Your responses have called anyone from anywhere a liar and criticised them as often as you can.

from above.

Stock dilution, also known as equity dilution, is the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders.

So you can say it is stocks but it is still other peoples money that they will want a return on. It is still 1.8 billion of actual money. Those people who had there stock diluted will have done so under the presumption they will have it returned in actual money or profit or some other way. It is still actual money.

All you have proved is they still paid 4 bilion for Lucasfilm.

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Whilst im no big fan of Disney Star Wars, the claim they are not remotely close to profit seems hollow.

Disney also own ILM as part of the deal, and they keep working and keep making money.

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Why does anyone care if Disney lost money? They obviously don't. Even if they are losing that much money (I doubt it) they were able to cover it else where, and aren't going out of business. Their stock price hasn't taken the hit, so they'll just move on business as usual. Even if they decided not to put another dollar into Star Wars, and just ride the wave of DVD sales, merchandise, streaming, video games, and theme parks, then it will always be an endless cash stream for them, since they already covered the cost to pay for it.

Also, Star Wars has provided other values to Disney that are much more difficult to measure. First the theme parks have been packed since opening. Now its impossible to measure how much of that is the result of the new Star Wars land, but it has given a much needed boost to a park that needed one, and will continue to do so for years. And then there's Disney+. Having the Star Wars catalog is one of the major pillars to its immediate success, along with Marvel, Pixar and 20th Century Fox. Again, its impossible to know how much SW added to that success, but it was definitely an important piece of it, most notably The Mandalorian.

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wow so wrong Disney made its money back from the purchase of Lucas film on just ILM (Industrial Light & Magic) which every major film studio contracts to do work. Then when you add Skywalker Sound and the Star Wars IP they have more than made the purchase price back. I swear people think Lucas film is only Star Wars movies have no idea how much other things they do.

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