Comcast to pay $3.8B to acquire DreamWorks Animation
‘Shrek’ studio will bolster content of cable, Internet provider
DreamWorks Animation CEO Jeffrey Katzenberg has finally found a new home for Shrek at Comcast-owned NBCUniversal.
NBCUniversal, a division of Comcast, announced its acquisition of DreamWorks Animation on Thursday in a deal valued at about $3.8 billion. DreamWorks Animation stockholders will get $41 for each share of common stock. Comcast expects to close the deal by the end of 2016.
The studio’s shares rocked up 24% to close at $39.96 Thursday; Comcast shares edged 0.2% lower to close at $61.15.
Katzenberg has been seeking a buyer in recent years, a move that would help it remain competitive against bigger studios such as Disney and Fox.
In the past, SoftBank and Hasbro had expressed interest.
S&P Global Market Intelligence equity analyst Tuna Amobi said the acquisition could be “the richest-ever premium for a studio deal,” because Comcast paid more than 50% above DreamWorks Animation’s closing price in recent days.
When the deal is completed, Katzenberg will step down as CEO of the studio to become chairman of DreamWorks New Media, made up of the company’s ownership interests in video company AwesomenessTV and its tech company, Nova. He will be a consultant to NBCUniversal.
Katzenberg co-founded Dream Works in 1994 with Steven Spiel- berg and David Geffen, and DreamWorks Animation spun off as a public company in ’04.
“Having spent the past two decades working together with our team to build DreamWorks Animation into one of the world’s most beloved brands, I am proud to say that NBCUniversal is the perfect home for our company,” Katzenberg said in a statement.
Included in DreamWorks Animation’s rich animation library are film franchises such as Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon.