NBCUniversal Acquires DreamWorks Animation for $3.8 Billion
04.28.2016
Comcast-owned NBCUniversal is acquiring DreamWorks Animation for $3.8 billion, the company confirmed Thursday. Many publications reported the deal, expected to close by the end of the year assuming regulatory approval, was in the works on Wednesday.
The deal is intended to help NBCUniversal compete more directly with the likes of Disney-ABC, which is dominating the family entertainment space. Disney owns Marvel Studios and Lucasfilm and those entities' respective franchises.
Under terms of the acquisition, DreamWorks Animation will become part of the Universal Filmed Entertainment Group, which includes which includes Universal Pictures, Fandango, and NBCUniversal Brand Development, and is run by Jeff Shell. Comcast has had a lot of success with its own animation studio, Illumination, headed by Chris Meledandri, which has produced such animated movies as Despicable Me, and its spin-off Minions.
"DreamWorks Animation is a great addition to NBCUniversal," said Steve Burke, CEO of NBCUniversal, in a statement. "Jeffrey Katzenberg and the DreamWorks organization have created a dynamic film brand and a deep library of intellectual property. DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come.
According to NBCUniversal, the acquisition gives it greater ability to reach a host of new audiences in the highly competitive kids and family entertainment space, in both TV and film.
DreamWorks Animation's library includes such popular film franchises as Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon, which already has been converted into a TV series. DreamWorks also owns a "thriving TV operation that is a significant supplier of family programing, with hundreds of hours of original, animated content distributed across linear and SVOD platforms in more than 130 countries," according to NBCU's statement.
And DreamWorks Classics is a large library of classic animated characters, such as Where's Waldo, Rudolph the Red-Nosed Reindeer, Casper the Friendly Ghost and Lassie.
Once the transaction is complete, DreamWorks CEO Jeffery Katzenberg will become chairman of DreamWorks New Media, which will be composed of the company's ownership interests in digital producer Awesomeness TV and tech company Nova. Katzenberg, 65, also will be a consultant to NBCUniversal.
"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; a home that will embrace the legacy of our storytelling and grow our businesses to their fullest potential," said Katzenberg in a statement.
READ MORE: The Wall Street Journal, Adweek