Marvel Entertainment, LLC, formerly Marvel Entertainment, Inc. and Marvel Enterprises, Inc., was an American entertainment company and a subsidiary of the Walt Disney Company based in New York City that was active from June 2, 1998 to March 29, 2023. The former parent company of Marvel Comics, it was formed by the merger of Marvel Entertainment Group and Toy Biz.
Marvel Entertainment was mainly known for consumer products, licensing, and comic books by its flagship asset, Marvel Comics, as well as its early forays into films and television series, including those within the Marvel Cinematic Universe (MCU).
The Walt Disney Company acquired Marvel Entertainment for on December 31, 2009; it had been a limited liability company (LLC) since then. For financial reporting purposes, Marvel was primarily reported as part of the Disney Consumer Products segment ever since Marvel Studios' reorganization from Marvel Entertainment into Walt Disney Studios.Part I: Page 1: ITEM 1. Business. Fiscal Year 2010 Annual Financial Report And Shareholder Letter . The Walt Disney Company. Retrieved December 27, 2013. "Marvel businesses are reported primarily in our Studio Entertainment and Consumer Products segments."
Over the years, Marvel Entertainment entered into several partnerships and negotiations with other companies across a variety of businesses. , Marvel has film licensing agreements with Sony Pictures via Columbia Pictures (for Spider-Man films) and theme park licensing agreements with IMG Worlds of Adventure and Universal Destinations & Experiences (for specific Marvel character rights at Islands of Adventure). Aside from their contract with Universal Destinations & Experiences, Marvel's characters and properties have also appeared at Disney Parks.
On March 29, 2023, Marvel Entertainment's remaining units were folded into Disney's other divisions.
History Marvel Entertainment Group
Marvel Entertainment Group, Inc. (a.k.a. Marvel), incorporated on , and included Marvel Comics and Marvel Productions. That year, it was sold to New World Entertainment Ltd as part of the liquidation of Cadence Industries. On January 6, 1989, Ronald Perelman's MacAndrews & Forbes Holdings bought Marvel from New World for $82.5 million. The deal did not include Marvel Productions, which was folded into New World's television and movie business.
"It is a mini-Disney in terms of intellectual property," said Perelman. "Disney's got much more highly recognized characters and softer characters, whereas our characters are termed action heroes. But at Marvel we are now in the business of the creation and marketing of characters."
Public offering and acquisition Marvel made an initial public offering of 40% of the stock (ticker symbol NYSE:MRV) on July 15, 1991, giving $40 million from the proceeds to Andrews Group, Marvel's then direct parent corporation within MacAndrews & Forbes Holdings.
In the early 1990s, Marvel began expanding through acquisitions and the formation of new divisions. It purchased the trading card company Fleer on July 24, 1992. On April 30, 1993, Marvel acquired 46% of ToyBiz, which gave the company the rights to make Marvel toys. The Andrews Group named Avi Arad of ToyBiz as the president and CEO of the Marvel Films division.
In 1993 and 1994, Marvel's holding companies, Marvel Holdings, Inc. and Marvel Parent Holdings, Inc., were formed between it and Andrews Group. The companies issued over half a billion dollars in bonds under the direction of Perelman, which was passed up in dividends to Perelman's group of companies. Later on, Marvel and Acclaim Entertainment teamed up to provide a video game license in the early 1990s, which eventually formed into a joint label, Marvel Software in 1994. On July 5, 1994, Marvel acquired Panini Group, an Italian sticker-maker, followed by Malibu Comics on November 3 and Heroes World Distribution, a regional distributor to comic-book shops, in December. On March 10, 1995, it acquired trading card company SkyBox International with the acquisition being fully completed later in May.
Marvel's attempt to distribute its products directly led to a decrease in sales and aggravated the losses which Marvel suffered when the comic book bubble popped, the 1994 Major League Baseball strike massacred the profits of the Fleer unit, and Panini, whose revenue depended largely on Disney licensing, was hobbled by poor Disney showings at the box office. A minority of dissidents maintain no bubble existed.
Bankruptcy and Marvel Studios In late 1995, Marvel reported its first annual loss under Perelman, which was attributed mainly to the company's large size and a shrinking market. On January 4, 1996, Marvel laid off 275 employees.
In late 1996, Perelman proposed a plan to save Marvel in which the company would merge with Toy Biz after Perelman spent $350 million for the Toy Biz shares that he did not already own. He would then receive newly issued Marvel shares to maintain his 80% stake.
Separately, in July 1996, Marvel filed with the U.S. Securities and Exchange Commission to raise money to create a private entity called Marvel Studios. Much of the money to create Marvel Studios came from the sale of Toy Biz stock.
On December 27, 1996, the Marvel group of companies filed for Chapter 11 bankruptcy protection. At this time, Carl Icahn, an American businessman and investor, began buying Marvel's bonds at 20% of their value and moved to block Perelman's plan. In February 1997, Icahn won the bankruptcy court's approval to take control of the company's stock. Later, in June 1997, Icahn won the right to replace Marvel's board, including Perelman.
In December 1997, during the post-bankruptcy reorganization phase, Toy Biz came to an agreement to purchase Marvel from the banks. In December 1997, the bankruptcy court appointed a trustee to oversee the company in place of Icahn. In April 1998, while the legal battle continued, the NYSE delisted Marvel stock.
In August 2008, former company head Ronald Perelman paid $80 million to settle a lawsuit accusing him of helping divert $553.5 million in notes when he controlled the company.
Marvel Enterprises
ToyBiz and Marvel Entertainment Group were merged into Marvel Enterprises to bring it out of bankruptcy on June 2, 1998. In February 1999, Fleer/Skybox was sold to a corporation owned by Alex and Roger Grass, a father and son, for US$30 million.
Later, the rights to names like "Spider-Man" were being challenged. Toy Biz hired an attorney to review its license agreement. Los Angeles patent attorney Carole E. Handler found a legal loophole in the licensing of the Marvel name and was successful in reclaiming Marvel Enterprises' movie rights to its character Spider-Man.Bing, Jonathan. "Inside Move: Rights snares had Spidey suitors weaving" , Variety, May 19, 2002: "Marvel lawyer Carole Handler found a legal loophole: The original sale to Cannon hadn't been registered with the U.S. Copyright Office, so rights reverted to Marvel."
Marvel Enterprises organized itself into four major units, Marvel Studios, Toy Biz, Licensing and Publishing, while in November 1999 adding Marvel Characters Group to manage Marvel's IP and oversee marketing. Marvel named its Marvel New Media president, Steve Milo, in November 2000 to oversee its website.
In 2003, Bill Stine purchased back Quest Aerospace, a 1995 Toy Biz acquisition, from Marvel. In summer 2003, Marvel placed an offer for Artisan Entertainment, but it was eventually acquired by Lions Gate Entertainment. A new unit, Marvel International, was set up in London under a president, Bruno Maglione, to extend the company's operation and presence in major overseas markets in November 2003. In December 2003, Marvel Entertainment acquired Cover Concepts from Hearst Communications, Inc. In November 2004, Marvel consolidated its children's sleepwear-apparel licensing business with American Marketing Enterprises, Inc.
In November 2004, the corporation sued South Korea-based NCSoft Corp. and San Jose, California-based Cryptic Studios Inc. over possible trademark infringement in their City of Heroes massive multiplayer online game. Marvel settled a film-royalties lawsuit in April 2005 with its former editor-in-chief, publisher and creator, Stan Lee, paying him $10 million and negotiating an end to his royalties.
Marvel Entertainment In September 2005, Marvel Enterprises changed its name to Marvel Entertainment to reflect the corporation's expansion into financing its own movie slate.
In 2007, several Stan Lee Media related groups filed lawsuits against Marvel Entertainment for $1 billion and for Lee's Marvel creations in multiple states, most of which have been dismissed.Gardner, Eriq. "Marvel Dodges Bullet as $1 Billion Lawsuit over Stan Lee Company Is Dismissed" , The Hollywood Reporter, February 9, 2011. Additionally, a lawsuit over ownership of the character Ghost Rider was filed on March 30, 2007, by Gary Friedrich and Gary Friedrich Enterprises, Inc.
Disney subsidiary (2009–2023) On August 31, 2009, the Walt Disney Company announced a deal to acquire Marvel Entertainment for $4 billion, with Marvel shareholders to receive $30 and approximately 0.745 Disney shares for each share of Marvel they own. Shareholders from both companies approved the deal on December 31, 2009; it was finalised on the same day. The company was delisted from the New York Stock Exchange under its ticker symbol (MVL), due to the closing of the deal.
On June 2, 2010, Marvel announced that it promoted Joe Quesada to chief creative officer of Marvel Entertainment."Marvel's Joe Quesada Promoted to Chief Creative Officer" , Newsarama, June 2, 2010 In June 2010, Marvel set up a television division headed by Jeph Loeb as executive vice president. Three months later, Smith & Tinker licensed from Marvel the character rights for a superhero digital collectible game for Facebook and Apple's mobile platform. On October 1, 2010, Marvel moved its offices to a suite at 135 W. 50th Street, New York City, under a nine-year sublease contract.
Stan Lee Media's lawsuit against Marvel was dismissed again in February 2011.
In March 2013, Feld Entertainment agreed with Marvel to produce a Marvel Character-based live arena show. Marvel was also launching a new pop culture and lifestyle web show, "Earth's Mightiest Show". On August 22, 2013, Marvel Entertainment announced that it was working with Hero Ventures on The Marvel Experience, a traveling production/attraction. In April 2014, Hong Kong Disneyland announced the construction of Iron Man Experience, the first Marvel ride at any Disney theme park. It opened in 2017 and was built on a location in the park's Tomorrowland.
On September 16, 2009, the Jack Kirby estate served notices of termination to Walt Disney Studios, 20th Century Fox, Universal Pictures, Paramount Pictures, and Sony Pictures to attempt to gain control of various Silver Age Marvel characters. Marvel sought to invalidate those claims. In mid-March 2010 Kirby's estate "sued Marvel to terminate copyrights and gain profits from [Kirby's] comic creations." In July 2011, the United States District Court for the Southern District of New York issued a summary judgment in favor of Marvel, which was affirmed in August 2013 by the United States Court of Appeals for the Second Circuit. The Kirby estate filed a petition on March 21, 2014, for a review of the case by the Supreme Court of the United States, but a settlement was reached on September 26, 2014, and the family requested that the petition be dismissed.