Wednesday, August 09, 2006

Marvel Needs Merrill Lynch to Finance "Iron Man" and "Incredible Hulk"

Although Marvel stock profits shrank in the second quarter by 37% to $16.3 million, investors responded by buying up stock, raising the price 7% to $19.36 (US).

In other news, Marvel will kick off its own movie slate with the release of "Iron Man" in spring 2008.

Nine more movies will follow including "Ant Man" and "Captain America".

Financing has still not been secured for "Iron Man" and "Incredible Hulk".

The company is in negotiations with Merrill Lynch to fund the features through Marvel's debt facility.

Marvel's stock has risen more than 40% between November and June, but that increase may have been driven by the repurchasing of its own stock.

Overall revenue was down about 4%, from $88 million to $84 million, because of a 21% drop in licensing and flagging sales for 'Spidey' merchandise.