Disney's Marvel Acquisition May Not Portend More Media Deals

The Walt Disney Co.'s agreement to buy Marvel Entertainment raised the prospect of a new wave of mergers and acquisitions hitting the beleaguered media industry after the global financial crisis put a lid on dealmaking last fall. But the deal was hardly a sign of defensive consolidation in a shrinking industry, which some observers have been waiting to see in media. Disney paid a rich valuation for Marvel - a bet that the deal can yield outsized returns years down the road. In addition, Disney, with its ample free cash flow, is in a strong financial position and has a solid track record when it comes to integrating new business and brands into its sprawling portfolio of media and entertainment assets.