The all-cash deal will give $41 in cash for each share of DreamWorks Animation stock. The transaction is expected to close by the end of 2016, subject to federal antitrust considerations. DreamWorks stock was up a big 25% in early Thursday trading to $40.
Jeffrey Katzenberg, CEO/co-founder of DreamWorks Animation, will become chairman of DreamWorks New Media, which will include digital video producer Awesomeness TV and NOVA. Katzenberg will also serve as a consultant to NBCUniversal.
When details of the possible deal arose, analysts believed the unit could be combined with NBCUniversal’s Universal Studios.
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Over the last two decades, DreamWorks has produced big animated film franchises, including “Shrek,” “Madagascar,” “Kung Fu Panda” and “How to Train Your Dragon.”
Steve Burke, CEO of NBCUniversal, stated: “We have enjoyed extraordinary success over the last six years in animation with the emergence of Illumination Entertainment.” He says DreamWorks will add to this effort.
Katzenberg added: “This agreement not only delivers significant value for our shareholders, but also supports NBCUniversal’s growing family entertainment business."