BizJournals Portfolio

The New Deal

Worst. Merger. Ever? Worst. Merger. Ever?

With Disney's $4 billion purchase of Marvel, fanboys (and girls) bemoan the fate of a comic giant. Read More

Marvel's Fate Revealed!

Some Questions (and Answers) About Disney's Acquisition of Marvel. Read More

A New Oil Services Giant

Baker Hughes Inc. agrees to buy BJ Services Co. in a deal valued at $5.5 billion. Read More
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"The goal here is not to rebrand Marvel as Disney," Disney CEO Robert Iger said. He called the deal, “a great opportunity at the right time.”

Marvel shareholders will get $30 cash and 0.745 shares of Disney stock for every Marvel share. That amount should make Marvel CEO Isaac Perlmutter a very happy man. He’ll be staying on to run the Marvel brand, and he’ll be $881 million in cash richer. He’ll also own about 21.878 million shares of Disney stock, which based on Friday's closing price of $26.84, would be worth some $587.2 million.

Perlmutter acquired Marvel’s predecessor company in 1990, and was actively involved in the company after that, serving on its board of directors since 1993. He was vice chairman in January 2005 when he was named CEO. He was also already Marvel’s largest shareholder at that time.

Perlmutter’s company, Toy Biz, which had a royalty deal with Marvel, then headed by Carl Icahn, swooped in and picked up the company after it went through bankruptcy.

Stan Lee, the creator of most of Marvel’s most recognizable characters, doesn’t appear on the list of Marvel’s biggest shareholders in its proxy statement.

In the grittier, cash-intensive world of the oil patch, Baker Hughes, looking to strengthen its ability to draw oil and natural gas from shale and offer one-stop shopping for oil and gas companies, announced it was buying B.J. Services Co. for $4.9 billion in cash and stock. The $4.9 billion valuation reflected a drop in Baker Hughes share prices Monday.

B.J. Services shareholders will receive 0.40035 of a share of Baker Hughes stock, and $2.69 cash for each of their common shares. The price represents a 16 percent premium over the $15.43 a share B.J. Services was trading at August 28.

The deal allows Baker Hughes, the nation’s No. 4 oilfield-services company, to better compete with Halliburton Co. and Schlumberger Ltd. on projects that require multiple services. Most importantly, it adds B.J.’s No. 3 market share in the pressure-pumping market. In pressure pumping, gas or liquid is pumped into wells to increase their production.

Pressure pumping is a key to extraction of tight gas and shale gas, both expected to become major sources of natural gas in the U.S. in coming years.

"The business logic is one where both companies felt that all the major international oil and gas players want to rely increasingly on a one-stop approach where they can bundle services," John Olson, a fund manager at Houston Energy Partners, told Reuters.


Kent Bernhard Jr. is News Editor of Portfolio.com

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