Oct 31

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Timing of Lucas acquisition by Disney likely motivated by tax reasons

The entertainment world is abuzz about the $4.05 billion acquisition Lucasfilm by Disney. Lucasfilm is 100% owned by Lucasfilm Chairman and Founder, George Lucas.

I am not suggesting that the acquisition is not a good deal for all involved. However, for a transaction of this size, one needs to additionally worry about the undesired “partner” that shares in all our bounty.  This “partner” is the tax man. By triggering the transaction in 2012, before the new federal investment tax, the new possible income taxes that are likely necessary to resolve the “fiscal cliff”, and the new possible California taxes that will be decided on Election Day in a week, Lucas is well advised to record the gain and the taxes now, and give his “partner” a little less.

This issue, and related suggestions regarding what to do about it, are in this article.


About the author

David Nolte

I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.

Permanent link to this article: http://betweenthenumbers.net/2012/10/timing-of-lucas-acquisition-by-disney-likely-motivated-by-tax-reasons/

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