From the Ashes of 1996: How Marvel’s Worst Year Created an Empire

Hard to believe, but 1996 was officially 30 years ago. In case you don't remember, it was a WILD time in pop culture: Everybody was doing the Macarena, Tupac was shot & killed, the N64 debuted introducing the world to 3D gaming, the nWo & Stone Cold Steve Austin took the world by storm, and it was the last time the Cowboys won a Super Bowl (sorry Cowboys fans).

But beyond the overall pop culture world, 1996 may have been one of the most pivotal years for 'Geek Culture'. Something happened that kicked off a revolution, a revival, and a billion dollar industry-shifting concept.

1996 Was a Bad Year for Comic Books

You may be thinking, "You just said that 96 was maybe the most important year for Geek Culture...why are you talking about how bad the comic book industry was?" Well, because one thing leads to another.

The comic book industry as a whole crashed in 1996. Thanks to books like Spawn, the industry was white hot in the early 90s. However, that burned out pretty quickly. People were buying everything, so publishers were cranking out all sorts of collectible items to keep customers happy - variant covers, holograph covers, new #1s, new series, new worlds etc.. Speculators bought all the stuff up for a while...but eventually that 'artificial market' collapsed. When 1996 rolled around sales plummeted, many comic book stores and publishers went out of business...it was bad. Some estimates say that comic book sales dropped upwards of 70%!

All that led to one major event that completely changed the future of comics and geek culture FOREVER - Marvel Entertainment filed for bankruptcy.

How Marvel's Bankruptcy Changed the Landscape of Geek Culture

By December of 96, the leading comic book publisher in America filing for bankruptcy was both shocking and frightening. The company was spiraling with no end in sight. It seemed like the beginning of the end.

However, two things happened: Todd McFarlane's Spawn was getting some major attention both on the big & small screen and after a tense legal battle, Marvel merged with Toy Biz. Those two things may seem unrelated...but here's how it completely changed the course of history.

In 1992, Todd McFarlane had a smash with Spawn. Everyone was fighting over the rights to this property to cash in on it. Even by 1996, when both the HBO cartoon and the movie went into production, Spawn was still one of the top comic properties in America. 4 of the Top 10 comics sold in 96 were Spawn issues. Plus, all the spinoff titles and all that we still successful by 96 standards, landing in the top 30 sales list.

So, when the Spawn movie hit theatres in 1997, it made a good bit of money. Despite the poor critical response, the movie made $87.9 million at the box office against a $45 million budget. Then it did good business on the home media front. So, it showed movie business folks "Hey, the Turtles aren't the only comic property that can turn a profit on the big screen".

During this same time, Marvel was going through its bankruptcy restructuring. After a lot of back and forth, roughly a year after officially declaring for bankruptcy, they eventually merged with Toy Biz in December of 1997. Isaac Perlmutter, the owner of Toy Biz, gave his partner Avi Arad the task of fixing the Marvel brand. This forever changed the game.

From the Ashes of Bankruptcy Marvel Was Reborn

A terrible, no good 1996, eventually led to a resurgence in geek culture. By June of 1998, out of the ashes of bankruptcy, Marvel Enterprises was re-born. But they need quick cash to help pay off some of their debt. They sold Fleer/Skybox for $30 million. They sold off the rights to their biggest characters including Spider-Man, the Hulk, Daredevil, Blade, and the Fantastic Four.

I don't want to bore you with all the details, but eventually Marvel seeing the success of their creations on the big screen (Blade, the X-Men, and Spider-Man most notably) thought 'we could do that'. Problem is they already partnered, sold or the otherwise signed agreements for all their 'major' characters. So, what property did they have left that they could turn into a movie people cared about?

Well...remember, Marvel merged with a toy company? Their thought was "who do we have left that would make a great action figure? We'll use the movie to sell toys!" The train of thought led to one answer: Iron Man.

Iron Man Led to the MCU and the Rise of Geek Culture

It's kind of wild to think about now, because you can't walk into any major store in America without seeing something comic book related. Wal-Mart has toys everywhere, Circle K has racks of comics, etc., etc.. But in 2007 when Iron Man went into production, that wasn't really the case.

But Marvel & Toy Biz going all-in on the idea that a movie could help them sell toys to stay in the green forever changed pop culture. Because Iron Man didn't just keep Marvel profitable, it changed the world.

Upon it's release in 2008, with a "B-Level Character" and a troubled leading man attempting to revive his career, Iron Man was a MASSIVE hit. It grossed over $585 million at the box office and launched the MCU. The MCU made comics cool again. The Convention scene exploded again. Comic book sales jumped up. Being a 'geek' was cool again!

The MCU led Marvel to getting bought by Disney. Today, comic books and comic characters are just part of everything. From Disneyland to NFL broadcasts. And the thing that started it all - 30 years ago the comic book business crashed forcing Marvel to file for bankruptcy.