Disney CEO Robert Iger and George Lucas (Disney)
(USA Today) -- Mickey Mouse can now feel the Force.
Disney is buying Lucasfilm for $4 billion, adding the legendary Star Wars franchise to the entertainment giant's stable of characters. Lucasfilm is 100% owned by Founder George Lucas.
PHOTOS | Lucasfilm poster filmography
Based on Disney's closing price on Oct. 26, the deal is valued at roughly $4.1 billion. Disney will pay half the deal value in cash and issue 40 million shares of Disney to pay for the deal.
"For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," said George Lucas, Chairman and Chief Executive Officer of Lucasfilm, in a statement. "It's now time for me to pass Star Wars on to a new generation of filmmakers."
Kathleen Kennedy, co-chairman of LucasFilm, will report to Walt Disney Studios Chairman Alan Horn.
The latest part of the Star Wars saga, Star Wars Episode 7 is targeted for a 2015 release.