Tuesday, April 26, 2016

Comcast Reportedly Looking To Buy DreamWorks Animation For $3B

Comcast already owns a mammoth cable/broadband company, a major TV and cable TV network, amusement parks, and a movie/TV/video production and distribution company responsible for money machines like Jurassic World and the Despicable Me/Minions movies. But that’s not enough, apparently. The boys and girls from Kabletown are also looking to add DreamWorks Animation to their shelf.

The Wall Street Journal reports that Comcast is considering a $3 billion purchase of the competing animation studio, the company behind animated favorites like the Shrek, How To Train Your Dragon, and Madagascar movies. The most recent DreamWorks release, Kung Fu Panda 3, raked in more than half a billion dollars worldwide.

The reported offer price for the studio is slightly more than the current $2.3 billion value on the company, which was initially founded by entertainment industry heavyweights Steven Spielberg, Jeffrey Katzenberg, and David Geffen. After the company went public in 2004, Katzenberg stayed on as CEO while the co-founders took advisory roles.

For Comcast, having two of Hollywood’s most successful animation studios under its roof would presumably help the company by adding box office receipts and possible ways to increase efficiencies. More importantly would be the home video and streaming market (not to mention merchandise licensing) where animated movies can bring in significant amounts of cash from digital sales and rentals, along with sometimes-hefty licensing fees paid by streaming services.

Comcast could also use the acquired DreamWorks library to bolster the family friendly content it provides on its on-demand and streaming services.

We’ve asked Comcast to comment on this story but have yet to receive a reply.


by Chris Morran via Consumerist

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