Many have unsuccessfully tried to acquire DreamWorks Animation, will Comcast succeed where others have failed?
The Wall Street Journal has reported citing sources familiar with the matter at hand, that the largest cable operator in the U.S., Comcast Corp, has entered into talks with DreamWorks Animation SKG Inc., so as to buy it for a reported $3 billion.
If this deal where to come through, it isn’t yet clear how it will have an affect Jeffrey Katzenberg’s, DreamWorks CEO, job profile.
Comcast was not immediately available for comment outside regular U.S. business hours, however Dan Berger, DreamWorks spokesman, politely declined comment.
If this acquisition were to go through, it would bring about new life into the company, which has seen several unsuccessful buyout talks in the past.
Case in point: in September 2014, DreamWorks was reportedly in a buyout discussion with Softbank Corp, a cash-rich Japanese communication and media company. In November 2015, it had supposedly entered into preliminary talks with Hasbro Inc. However, with the toy manufacturing company’s board voting to walk away from this deal, the talks obviously came to a close. Lastly, the WSJ has reported citing sources who are close to the company,, that DreamWorks has held discussions with potential buyers from China.
In 1994, DreamWorks Studios was founded by Steven Spielberg, Jeffrey Katzenberg and David Geffen. In 2004, DreamWorks Animation was spun off from DreamWorks Studios as a separate listed company. The founders moved with the spun-off company and have remained at its helm.
Of late, DreamWorks Studios, in a strategic decision, has shrunk its profile in the volatile feature film industry and has instead preferred to license its original content to media houses and video streaming companies such as Verizon Communication’s Go90 and Netflix Inc.
With the news of Comcast entering into talks with DreamWorks spreading in the market, its shares moved up and closed at $27.12, while Comcast’s rested at $61.05.