Comcast eyes up DreamWorks in potential $3 billion deal
Comcast is eyeing up the potential acquisition of DreamWorks in a deal worth more than $3 billion.
As reported by The Wall Street Journal, according to sources familiar with the matter, the US cable giant is considering DreamWorks as a way to boost its consumer products and entertainment business.
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DreamWorks, led by Jeffrey Katzenberg, has released 25 animated feature films.
While not a large player, the company has enjoyed fame in recent years with the release of popular movies including "Despicable Me," "Kung Fu Panda" and the "Shrek" series.
The studio's current value is estimated to be $2.3 billion.
Katzenberg has been seeking a buyer for the studio for several years. If acquired and the chief executive leaves, Katzenberg would walk away with a payout of approximately $21.9 million.
It's likely such a move would result in some layoffs. However, the publication says that if an agreement is reached, DreamWorks and Comcast's Illumination animation studio would stay as separate brands.
The deal could not only provide Comcast with additional talent but could also generate additional revenue through DreamWork's vast intellectual copyright portfolio and ongoing contracts between the studio and content providers, including Netflix, for television cartoons.
In September 2014, reports surfaced revealing Japanese conglomerate SoftBank and toy maker Hasbro were interested in buying the animation studio, but nothing went beyond the negotiation table.
As with any talks, however, an agreement may not be reached, but considering Comcast is set to report its financial results on Wednesday, there may be an official update incoming.
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