9:15am (EST)

The Walt Disney Company (DIS, $26.84) has agreed to acquire Marvel Entertainment (MVL, $38.65)  in a stock and cash deal that will provide significant opportunities for Disney over the long run.

Under the terms of the deal and based Disney’s closing price as of Friday, Marvel stockholders will receive a total of $30 per share in cash plus approximately three quarters of a Disney share for each Marvel share they own.  In other words, the merger equates to about $50 per Marvel share or approximately $4 billion.

Marvel is up $10 in pre-market trading to $48.75, Disney is down 70 cents to $26.14.

Rick@MomentumOptionsTrading.com