Comcast Corp in talks to buy DreamWorks Animation for $3 bn
27 Apr 2016
The largest cable operator in the US, Comcast Corp, is in talks to buy Hollywood studio owner DreamWorks Animation SKG Inc for more than $3 billion, The Wall street Journal yesterday reported, citing sources.
A successful deal would see the merger of DreamWorks Animation with Comcast's Universal Pictures, the report said.
The offer price is at a good premium over DreamWorks' current market value of $2.3 billion.
Founded in 1994 by director and producer Steven Spielberg, music executive David Geffen, and former Disney executive Jeffrey Katzenberg, Glendale, California-based DreamWorks creates family entertainment, including computer-generated animated feature films, television specials and series and live entertainment properties.
In 2004, DreamWorks produced Shrek 2, the third-highest revenue-grossing movie of all time.
The company has theatrically released a total of 22 animated feature films, including the franchise properties of Madagascar, Kung Fu Panda and How to Train Your Dragon.
In 2008, Reliance-Anil Dhirubhai Ambani Group firm Reliance Entertainment agreed to provide DreamWorks a total of $1.2 billion funding.
Comcast is a global media and technology company with two primary businesses, Comcast Cable and NBC Universal.
It is one of the USA's largest video, high-speed internet and phone providers to residential customers under the XFINITY brand and also provides these services to businesses.
NBC Universal operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts.