The Disney-Maker Mega-Deal -- A Big Win for All Involved, Including LA-Based Content-Focused Investment

Well, those rumors were true -- Disney has, in fact, bought Maker Studios for the $500 million price-tag that we had come to expect (and with kickers that could bring it up to nearly $1 billion).  I wrote a feature article about this “possibility” 10 days ago in Variety (this is the link to that story) -- and I just shared my thoughts with Variety now that this deal has, in fact, become reality.

I lay out the business rationale for this mega-deal in these Variety articles (and won’t repeat them here). I also discussed them in this CNBC segment.  Certainly, this is a big big win for Maker’s investors.  I also believe it is a smart deal for Disney -- the strategic value and justification of which is not captured by looking at Maker’s financials alone.  Maker has tremendous value that can be unlocked uniquely in the Mouse House Machine.

Ultimately, this deal also is a big win -- a very big win -- for LA-based content-focused investment.  LA is a serious hub of digital media and tech-focused entrepreneurialism.  The Silicon Beach community is vibrant and alive with innovation.  But, up to now, LA has felt a bit insecure about its position in the world of venture capital and investment.  Next to its older and bigger NorCal sibling, it frequently felt unworthy (and that Silicon Valley sibling certainly frequently fueled that insecurity by not believing in content-focused investments).  The LA digital media/tech community has been looking for its first “big win” -- essentially its poster child.

Well LA, you have found that win in the guise of Maker Studios!  So shake off that insecurity, and get ready for a continuous string of significant SoCal-focused M&A activity in the next 12-18 months.

Strap on your seat-belts, it’s going to be a bumpy ride ... but an exhilarating one too.

Looks like NorCal’s little brother is growing up ....