Online Gambling's Cryptologic Frets Marvel Disney Deal

Published Wednesday, September 02, 2009 -

Disney Studios recent acquisition of the Marvel Brand super hero characters, may affect the fortunes of the online software developer Cryptologic. The move by Disney who have for the most part kept a very neat and clean reputation in the entertainment world has caused a little concern for Cryptologic executives.

This $4 billion acquisition of Marvel by the Disney organisation in August raises some interesting questions regarding these licensing contracts. Industry observers think it is highly unlikely that the deal will have any affect on the licencing agreements reached with Cryptologic in the short run although as time for renewal approaches there may be some reconsideration on the side of the Marvel Brand.

The Marvel slot section for online casinos is one of Cryptologic's most popular software programs. The great graphics and many jackpot options have players wanting more all the time. Some online casino analysts have weighed in on the subject saying that Disney may be against the online gambling industry, but no official comment has come out as yet.

This deal is a great reward for long time shareholders of Marvel, although there will probably be those who will feel that the deal is undervalued based on the future potential of the company. This is a big acquisition, even for Disney. At over 22 times 2010 consensus EPS estimates for Marvel, Disney is setting the bar fairly high for doing more with Marvel than just taking in its licensing revenue. And according to one analyst it's unclear if existing licensing agreements could impact the timing of when Disney can fully exploit Marvel's library.

Ike Perlmutter, Marvel's Chief Executive Officer,said, "Disney is the perfect home for Marvel's fantastic library of characters given its proven ability to expand content creation and licensing businesses" adding, "This is an unparalleled opportunity for Marvel to build upon its vibrant brand and character properties by accessing Disney's tremendous global organization and infrastructure around the world."

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