DreamWorks Animation's long search for a buyer seems to be nearing its end. Jeffrey Katzenberg, CEO of the animation company, might have finally found a willing buyer for his ailing firm. Comcast is willing to acquire the Glendale-based studio for over $3 billion, reliable sources have confirmed to Hollywood Reporter.
When the negotiations is finally consummated, DreamWorks will be incorporated into an entertainment company which has key control to properties that include the USA network, Telemundo, Universal Studios and NBC.
This will be a strong fit for the Glendale, CA-based company with its 19 animated television shows still in production together with blockbuster movie franchises such as Shrek and Kung Fu Panda.
This development provides Katzenberg a strong buyer considering that he has been selling his company for many years. He has courted almost every prospective buyer, from 20th Century Fox to a number of Chinese companies.
The $3 billion deal represents about 30 percent more than DWA's current market value, according to two individuals who have knowledge of the negotiations, but requested anonymity since they were not authorized to give such information. The talks were first reported by the Wall Street Journal.
If the deal is finalized, Comcast will integrate DWA with its own Illumination Entertainment, according to these individuals. Christopher Meledandri, its chief executive, will most likely take charge of its operations. Meledandri is credited with the success of several blockbuster films including "Despicable Me" among others.
With Melendandri at the helm of DWA, that would mean Katzenberg will no longer be needed and there is a possibility of layoffs as well of former DWA employees who are based in Glendale, Calif.
DreamWorks Animation, a company spun in 2004 from DreamWorks Studios owned by Steven Spielberg, might have induced the interest of Comcast as an owner of intellectual property. It has struggled to get out of its boom-and-bust cycle due to its sporadic way of making and releasing films.
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