Four months after Comcast announced its intention to acquire animation studio DreamWorks Animation, NBCUniversal, a division of cable company Comcast, has announced the closure of the $3.8 billion deal. But running a studio proved more tumultuous than anticipated, with those backlot plans eventually cancelled due to financial concerns, and the animation side of the studio – which had been racking up hits with the first two Shrek films – spun off into its own Katzenberg-led unit in 2004.
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Comcast has finally secured the acquisition of animation studio DreamWorks as the company looks to build a company more capable of competing with entertainment behemoths Disney and Time Warner.
Monday was the final day that DreamWorks’ shares traded on the Nasdaq stock exchange, according to another regulatory filing.
“The DreamWorks Animation brand brings with it a cachet that few family entertainment companies can match”, commented Ron Meyer, Vice Chairman, NBCUniversal, Jeff Shell, Chairman, Universal Filmed Entertainment Group and Donna Langley, Chairman, Universal Pictures.
Also set: Margie Cohn, head of Animation TV, will lead the integrated DreamWorks and Universal television animation business, reporting to Universal Filmed Entertainment Group chairman Jeff Shell.
DreamWorks’ board of directors also was disbanded. DreamWorks Animation President, Ann Daly, will step down from her post and will serve as an advisor during the transition. Last year, DreamWorks Animation reduced its annual output by a third as part of a massive restructuring that saw 500 employees laid off.
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Comcast added that on September 21, DreamWorks would redeem the full $300-million aggregate principal amount outstanding on its senior notes that were due in August 2020.
