Date
23 July 2017
By acquiring DreamWorks, cable giant Comcast hopes to emerge as a rival to Wal Disney in the family movie business. Photo: Reuters
By acquiring DreamWorks, cable giant Comcast hopes to emerge as a rival to Wal Disney in the family movie business. Photo: Reuters

Comcast to acquire DreamWorks Animation for US$3.8 bln

Comcast Corp. announced Thursday it will buy Hollywood studio DreamWorks Animation SKG Inc. for US$3.8 billion, in a deal that is expected to help the cable giant take on Walt Disney in the family movie business.

Under the agreement, Comcast, which owns media giant NBCUniversal, will offer US$41 per share, representing a premium of about 27 percent to DreamWorks’ closing share price Wednesday, Reuters reported.

In addition to brands it created, like “Shrek,” DreamWorks owns rights to iconic characters such as Lassie and Casper the Friendly Ghost.

DreamWorks’ burgeoning TV business will also be a boon to Universal.

The studio, which has struggled in recent years, provides original programming to streaming service Netflix and other digital platforms.

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RC

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