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Comcast in Talks to Buy DreamWorks Animation for $3 Billion-Plus

The pierce comes after CEO Jeffrey Katzenberg has attempted for years to sell a company.

Jeffrey Katzenberg competence have finally found a customer for his DreamWorks Animation.

The Glendale animation association is in talks with Comcast to be sole for some-more than $3 billion, sources endorse to The Hollywood Reporter

The intensity merger would overlay DWA into an party firm that controls pivotal properties such as NBC, Telemundo, a USA network and Universal Studios. It also would be a clever fit for DWA, that has 19 charcterised radio shows in prolongation alongside blockbuster film franchises like Kung Fu Panda and Shrek.

The pierce would provide Katzenberg, CEO of a animation company, with a clever customer after years of searching. In November, he hold modernized talks with toymaker Hasbro about a probable tie-up after months progressing holding a turn of discussions with Japanese telecommunications hulk SoftBank. The noble also has courted everybody from 20th Century Fox to several Chinese companies.

DWA declined to criticism on a news, initial reported by The Wall Street Journal, and a orator for NBC Universal/Comcast also declined to comment.

A $3 billion offer would offer a decent reward for shareholders who have invested in a association now value $2.3 billion. 

It was not transparent if Katzenberg would say a purpose in using a studio he helped to form in 1997 underneath primogenitor association DreamWorks SKG, that he combined 5 years progressing along with Steven Spielberg and David Geffen. The animation studio was spun off as a apart association in 2004, with Katzenberg during a helm.

The studio now has a placement understanding with 20th Century Fox that runs out during a finish of 2017. So, any link-up with Comcast’s Universal would be timely. The bid also comes several months after Spielberg’s revived DreamWorks Studios — now called Amblin Partners — sealed a unconditional placement understanding with Universal.

Buying DWA would give Universal dual of Hollywood’s heading animation studios, given it already owns Chris Meledandri’s Illumination Entertainment, home of a blockbuster Minions franchise. With both DWA and Illumination in-house, Universal could plea Disney’s animation powerhouse multiple of Pixar and Disney Animation Studios.

On a flip side, by adding DWA to a fold, Universal would have dual animation studios competing for desired recover slots in a swarming family-film market.

Katzenberg has directed a Glendale film studio by a array of financial hurdles during a past few years as he has worked to variegate a company. He shaped a corner try in 2012 with Chinese companies to build a Shanghai-based studio, Oriental DreamWorks, that was concerned in a company’s latest charcterised movie, Kung Fu Panda 3, that has grossed $504 million worldwide given a Jan. 29 release.

In 2013, DWA also bought a digital calm association Awesomeness TV and sealed a multiyear deal to yield strange calm to Netflix.

Meanwhile, DWA has been in a routine of transforming a film operations after a array of box-office disappointments, including Turbo and Penguins of Madagascar, weighed on a quarterly results. DWA responded by slicing 500 jobs final year, sealed an animation studio in Redwood City, Calif., and put new executives in assign of a film studio.

Katzenberg — who perceived $13.5 million in compensation final year — has focused on branch around a company, that will recover a subsequent movie Trolls in Nov in hopes of rising a new franchise. He has been attempting to transcribe a success seen in progressing hits like the Shrek series. Shrek 2, DWA’s top-grossing movie, collected $909 million worldwide when it was expelled in 2004.

Last year, a association reported a $53.9 million detriment that was a large alleviation from a $308 million necessity it purebred in 2014.

However, a batch cost has remained choppy during a past few years. Though it sealed final year about 15 percent higher, it was still resilient from a heartless 2014 when a batch cratered 37 percent. It sealed on Tuesday down incompletely during $27.12, giving it a marketplace value of $2.35 billion (though, factoring in debt, it is value about $2.6 billion).

Article source: http://www.hollywoodreporter.com/news/comcast-talks-buy-dreamworks-animation-888070

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