Disney to make new 'Star Wars' films, buy Lucas production company for $4 billion

LOS ANGELES — The "Star Wars" saga will continue with another trilogy followed by a new movie every two or three years as Disney reached a deal with "Star Wars" creator George Lucas to buy his production company for $4.05 billion.

The seventh movie, with a working title of "Episode 7," is set for release in 2015. Episodes 8 and 9 will follow, completing Lucas' original vision for a nine-episode saga. The three new movies will carry the story beyond "Return of the Jedi," the third film released and the sixth in the saga. Lucas will serve as creative consultant in the new movies.

"For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next," said Lucas, chairman and CEO of Lucasfilm Ltd. "It's now time for me to pass Star Wars on to a new generation of filmmakers. I've always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime."

The Walt Disney Co. announced the blockbuster agreement to buy Lucasfilm in cash and stock Tuesday. The deal includes Lucasfilm's prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the "Indiana Jones" franchise.

Disney CEO Bob Iger said in a statement that the acquisition is a great fit and will help preserve and grow the "Star Wars" franchise.

"The last 'Star Wars' movie release was 2005's 'Revenge of the Sith' — and we believe there's substantial pent-up demand," Iger said.

Kathleen Kennedy, the current co-chairman of Lucasfilm, will become the division's president and report to Walt Disney Studios Chairman Alan Horn.

The deal brings Lucasfilm under the Disney banner with other brands including Pixar, Marvel, ESPN and ABC, all companies that Disney has acquired over the years. A former weatherman who rose through the ranks of ABC, Iger has orchestrated some of the company's biggest acquisitions, including the $7.4 billion purchase of animated movie studio Pixar in 2006 and the $4.2 billion acquisition of comic book giant Marvel in 2009.

Disney shares were not trading with stock markets closed due to the impact of Superstorm Sandy in New York.