The accretion will add above children’s franchises to Universal’s blur library such as “Shrek,” “How to Train Your Dragon” and “Kung Fu Panda,” which it could tap for its growing affair parks and customer articles
businesses.
Comcast’s Universal Pictures begin success with blockbuster ancestors films like “Despicable Me” and “Minions,” but this accord will access up its portfolio.
DreamWorks’ beginning TV business will aswell be a benefaction to Universal, Wall Street analysts said. DreamWorks provides aboriginal programming to alive account Netflix (NFLX.O) and added agenda platforms that are acquisitive for agreeable as TV viewership rapidly moves online.
“It’s a alive strategy,” Moffett Nathanson analyst Craig Moffett said. “They are affairs characters.”
In accession to brands it created, like “Shrek,” DreamWorks owns rights to iconic characters such as Lassie and Casper the Friendly Ghost that it acquired in its 2012 acquirement of Classic Media.
“There’s a lot of befalling for them to actualize absorbing agreeable out of those brands and monetize them,” Moffett said.
Comcast, the better cable benefactor in the United States, has steadily additional its buying of agreeable and invested in accretion its affair parks business, accession itself as a adapted amassed to battling Disney.
The $41-per-share banknote action represents a exceptional of about 27 percent to DreamWorks’ Wednesday close.
DreamWorks shares, which accept acquired about 50 percent in the endure six months, soared 24 percent to $39.95 on Thursday.
Chief Executive Jeffrey Katzenberg will become administrator of DreamWorks New Media, which will cover the company’s buying interests in technology aggregation NOVA and Awesomeness TV, a teen-focused flat that cultivates stars of Alphabet Inc’s (GOOGL.O) YouTube and added agenda platforms. Katzenberg will aswell serve as a adviser to NBC Universal.
DreamWorks Action was spun off from DreamWorks Studios in 2004. The flat was founded in 1994 by Katzenberg, Steven Spielberg and David Geffen.
The action flat struggled in contempo years as the bazaar for children’s movies became crowded. In 2015, it cut one-fifth of its workforce and bargain its cine slate from three films a year to two. This year, it had a hit with “Kung Fu Panda 3.”
DreamWorks Action had appear abutting to getting awash before.
In 2014, the aggregation captivated talks about a accessible auction to Japanese communications and media aggregation Softbank Corp (9984.T), a antecedent with ability of the amount told Reuters at the time.
Later that year, toymaker Hasbro Inc (HAS.O) captivated basic talks to buy DreamWorks Animation, according to addition antecedent at the time. The talks formally concluded a few canicule afterwards after Hasbro’s lath voted to airing away.
Stifel analyst Benjamin Mogil said he did not anticipate addition applicant would appear in and top Comcast’s action “given the appraisal and the operational role for DreamWorks Action CEO Jeffrey Katzenberg in this deal.”
DreamWorks Action was brash by bazaar investment coffer Centerview Partners Holdings LLC, which Reuters aboriginal appear on Wednesday, and acknowledged adviser Cravath, Swaine & Moore LLP. Comcast’s acknowledged adviser was Davis Polk & Wardwell LLP and the aggregation did not account a banking adviser.
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