What Netflix's Acquisition of Millarworld Means for Investors
- By Sangara Narayanan
Netflix Inc. (NFLX) announced Aug. 7 it has acquired comic book publishing company Millarworld, which owns several iconic characters and stories such as "Kick-Ass," "Kingsman" and "Old Man Logan."
Netflix's first-ever acquisition makes it amply clear the company remains focused on building original content and believes it will help it stand out in the increasingly overcrowded streaming video market.
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"As creator and re-inventor of some of the most memorable stories and characters in recent history, ranging from Marvel's 'The Avengers' to Millarworld's 'Kick-Ass,' 'Kingsman,' 'Wanted' and 'Reborn' franchises, Mark is as close as you can get to a modern day Stan Lee," said Netflix Chief Content Officer Ted Sarandos . "We can't wait to harness the creative power of Millarworld to Netflix and start a new era in global storytelling."
He continued, "We look forward to creating new Netflix Originals from several existing franchises as well as new super-hero, anti-hero, fantasy, sci-fi and horror stories Mark and his team will continue to create and publish."
Disney (DIS) has seen success by making movies inspired by comics. Nearly eight years ago, the company announced it had bought Marvel Entertainment for $4 billion dollars, taking characters like Iron Man and the Avengers under its wing. That investment turned out to be a huge success for Disney as the company made billions of dollars off those franchises.
According to Newsrama, Disney has generated over $8.5 billion in global box offices since the buyout. Its "Guardians of the Galaxy" grossed $774 million and the company has at least 10 more Marvel movies planned through 2019.
Netflix has already produced several Marvel shows, including "Daredevil," "Jessica Jones" and "Iron Fist." As a result, the company clearly recognizes the global consumer trend behind them. By buying Millarworld and bringing Mark Millar on board, Netflix will be looking to build more exclusive content on its platform, thereby further differentiating its product from competitors.
Netflix has steadily increased its subscription base around the world. At the end of the second quarter, it had 103.95 million total users, with 51.92 million from the United States and 52.03 million from international markets. The company is well on its way to crossing $10 billion in annual revenues this year. More acquisitions like this one will only help improve the brand and its reach in the global market over the next several years.
Disclosure: I have no positions in the stocks mentioned above, and no intention to initiate a position in the next 72 hours.
This article first appeared on GuruFocus.
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