Unless you’ve spent the last few months trapped down a well, it’s been hard not to catch a glimpse of the hype surrounding the new Star Wars film.
But perhaps what you haven’t noted is that the biggest winners here aren’t just the fans, but the production company and the stock market traders themselves. Drawing in a staggering $519million gross worldwide, The Force Awakens is tipped to smash box office records around the world and a very relieved Disney, who acquired the Lucasfilm in 2012, is no doubt laughing all the way to the bank.
Since 2012, and presumably the first notice of their intent to venture into the Star Wars brand, Disney has seen their stock more than double in worth and this can only increase as the film continues to draw in huge revenues for them.
What’s more is that there are a further four confirmed Star Wars films and spin-offs already documented in the pipeline with surely more to come, and should earnings from The Force Awakens reach the highs of Avatar and Titanic, with DVDs, merchandise and more, they could find their $4 billion acquisition could break even before the third film is even released!
But to understand the true power of ‘The Force’, a simple look at the market news and stocks in one of the few cinema groups that is still floated on the LSE can give an insight into its’ incredible knock-on effect.
Cineworld, a major cinema outfit based in Europe, has seen its’ share price jump over 25 points since the release of the new blockbuster and surely this is more than coincidence. Having sat around 542p, it is currently bouncing around the 568p mark and is well worth a gamble on.
Regardless of whether people like the Star Wars brand or if they have yet to forgive it for the much-maligned prequels, the market power that the brand holds is second to very few.
While many thought that the sizeable purchase a few years back was a risky move and were loathe to watch such a huge amount of money exchange hands, others correctly backed the company, even when it closed down production of Star Wars 1313 and released over 150 staff.
While those who decided to pull their Disney shares are surely kicking themselves in hindsight, it seems that the markets acceptance of the new film and future projects has left the company a clear winner and one that looks to prosper from the franchise for considerable years to come.