Universal buys DreamWorks Animation for $3.8 billion or accelerates its battle against Disney

After completing the transaction, DreamWorks will be integrated into NBC Universal's Universal Pictures Entertainment Group and will be juxtaposed with Universal Pictures as a group subsidiary.

On the evening of the 28th, according to foreign media reports, Comcast, the parent company of Universal Pictures, announced that it would acquire DreamWorks Animation for US$3.8 billion in cash. The transaction is expected to be completed before the end of this year. After completing the transaction, DreamWorks will be integrated into NBC Universal's Universal Pictures Entertainment Group and will be juxtaposed with Universal Pictures as a group subsidiary. Previous film plans that DreamWorks has announced include "Crazy Primitive 2","Lego Batman Movie","How to Train your Dragon 3", etc.

Under the agreement reached between the two parties, NBC Universal will pay DreamWorks shareholders $41 in cash per share of DreamWorks shares, a 27% premium to DreamWorks 'closing price on Wednesday and a 51% premium to DreamWorks' closing price on Tuesday. The Wall Street Journal reported after the stock market closed on Tuesday that Comcast and DreamWorks were in merger talks. Jeffrey Katzenberg, co-founder and CEO of DreamWorks, will serve as chairman of DreamWorks New Media.

"My team and I have worked together over the past 20 years to build DreamWorks into one of the most beloved brands in the world. Now, I am proud to announce that NBC Universal will be the perfect home for our company,"Katzenberg said.

DreamWorks has produced successful animated films such as "Shrek","Kung Fu Panda" and "Madagascar", but the box office performance of the films in recent years has not been satisfactory.

In 2015, they announced a major reorganization, with approximately 18% layoffs and nearly 500 employees being dismissed. In the future, the annual film distribution will be reduced to two to three films. In addition, it has increased its reliance on the rapidly rising mainland film market in China. In 2012, Chinese Culture joined forces with Shanghai Culture, Shanghai Lianhe Investment and DreamWorks Animation to form the Oriental DreamWorks. The joint venture project is controlled by the Chinese side and the US side holds 45.45%. In 2016, he handed over his first work since its establishment,"Kung Fu Panda 3."

Comcast's Universal Pictures has achieved success in recent years with its animated films "Stolen Dad" and "Little Yellow Man", but there is still a certain gap between Disney's giant layout. After the acquisition of DreamWorks, Comcast's strategy in the animation field may accelerate.

Comcast is a cable TV, broadband network and IP phone service provider in the United States. It is headquartered in Philadelphia, Pennsylvania. It has 24.6 million cable TV users, 17 million broadband network users and 8.6 million IP phone users. It is the largest cable TV company in the United States, the second largest Internet service provider, and the fourth largest telephone service provider. Comcast is also the parent company of Universal Pictures, one of the six largest Hollywood film companies.

Editor: yvonne