Comcast Corporation (NASDAQ:CMCSA) announced that its business unit, NBCUniversal would acquire DreamWorks Animation (NASDAQ:DWA) for $3.8 billion.
According to Comcast, DreamWorks Animation will become part of the Universal Filmed Entertainment Group, which is composed of Universal Pictures, Fandango, and NBCUniversal Brand Development.
Under the terms of the agreement, the stockholders of DreamWorks Animation will receive $41 in cash for every share of the company’s common stock.
The Board of Directors of DreamWorks and Comcast approved the agreement which is expected to close by the end of 2016. The transaction is still subject to other customary closing conditions and antitrust approvals in the United States and overseas.
DreamWorks is a great addition to NBC Universals
NBCUniversal CEO Steve Burke said DreamWorks Animation CEO Jeffrey Katzenberg and his team created a “dynamic film brand and a deep library of intellectual property.” According to him, the studio is a “great addition” to NBCUniversal.
DreamWorks Animation is one of most admired family brands worldwide. Some of the major children’s franchise created by the studio included Shrek and Kung Fu Panda.
“DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come. The prospects for our future together are tremendous. We are fortunate to have Illumination founder Chris Meledandri to help guide the growth of the DreamWorks Animation business in the future,” added Burke.
On the other hand, Katzenberg said, “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.”
In 2014, Reuters reported that DreamWorks engaged in discussions with SoftBank and preliminary talks with Hasbro regarding a possible sale in 2014.
The stock price of DreamWorks Animation surged more than 24% to $39.98 per share around 1:44 in the afternoon in New York. The company gained more than 55% in stock value year-to-date.
On the other hand, Comcast shares were up 0.33% to $61.50 per share. The company gained almost 9% in stock value year-to-date.