Comcast division NBCUniversal has made an offer to acquire DreamWorks Animation studio for $3.8 billion. The price offering of $41 per share is a 50 percent premium on the stock’s trading price before the announcement. DreamWorks shares went up 24 percent following the announcement. DreamWorks has been a stable revenue generator, having made over $5 billion in the US box-office (besides DVD sales, licensing and merchandising) over its past 18 years of operation.
This also doesn’t factor in revenue from outside North America. Comcast hopes to take advantage of the company’s memorable characters to grow its theme parks, a move that should be beneficial to both companies. Regulatory approval is expected and the deal could be finalised by the end of the year. If the deal doesn’t go through however, Comcast has prepared a $200 million reverse breakup fee.
