Uh-oh. Walt Disney (NYSE:DIS) is killing part of the Star Wars franchise it acquired in October for $4 billion. The good news? Like Obi-Wan Kenobi, the dead will rise soon enough, and in perhaps a more powerful form.
Specifically, Disney has closed 31-year-old game-development division LucasArts and laid off some 200 employees who worked there, The Wall Street Journal reports. New Star Wars universe games -- presuming any are under consideration -- will be published elsewhere.
It's a good move, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with The Motley Fool's Erin Miller. Researcher NPD put LucasArts' revenue at just $55 million last year, down sharply from $175 million in 2006.
What's more, Tim says, Disney is the world's largest brand licensor and as such could extract good terms from the likes of Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ: ATVI), both of which have long, successful histories with developing games around licensed brands. The possibility of such a deal may help explain why Disney stock reached another new high this week.
Are you more bullish on Disney's prospects after seeing this news? What about Activision and EA? Please watch this short video to get Tim's full take, and then leave a comment to let us know whether you'd buy or sell Disney stock now, and why.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He and Erin Miller both owned shares of Walt Disney at the time of publication. Check out Tim's Web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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