Walt Disney Co. share price down, negotiates over the acquisition of Maker Studios in a 500-million-dollar deal

According to people familiar with the process, Walt Disney Co. is currently negotiating over the purchase of the online-video producer, promoter and distributor Maker Studios in a deal estimated to about 500 million dollars. As reported by the Wall Street Journal, one of the people with knowledge of the matter revealed that the price of the deal may reach 900 million dollars.

Striking such an agreement is said to be able to provide Walt Disney Co. with the opportunity to make its presence on the constantly growing online video market more stable, which respectively means that the company will get better access to a young audience of people born between 1982 and 2002, who are not particularly interested in traditional television.

If the deal is finalized, this is expected to be the largest acquisition made by a major media company in the branch, especially considering the fact that the industry is dominated by Google Inc.s YouTube service. Currently Maker Studios is one of the biggest multichannel networks that cooperate with amateur users producing YouTube videos in different areas. However, as reported by the Wall Street Journal, most multichannel networks have been experiencing difficulties making a profit due as YouTube takes a large share of advertising profit on the website.

At the same time, it became clear that the Co-Chairman of Disney Media Networks – Ms. Anne Sweeney – is going to leave the company in January 2015 after 18 years of partnership in order to build a career as a television director. As reported by the Financial Times, this was “a long realised dream” for her.

Ms. Anne Sweeney made a statement, which was cited by Bloomberg: “There has always been a nagging voice in the back of my head pushing me to step out of the comfort zone of the executive ranks and more directly into the creative arena. I finally listened to that voice.”

Walt Disney Co. fell by 1.12% on Tuesday in New York to close the session at $81.05 per share, marking a one-year change of +41.92% and valuing the company at $142 billion. According to CNN Money, the 28 analysts offering 12-month price forecasts for Walt Disney Co. have a median target of $80.00, with a high estimate of $92.00 and a low estimate of $68.00. The median estimate represents a -1.30% decrease from the previous close.