Comcast buying DreamWorks Animation for about $3.55B
NEW YORK (AP) - Comcast is buying DreamWorks Animation, the film company behind the Shrek, Madagascar and Kung Fu Panda franchises, for approximately $3.55 billion.
DreamWorks stockholders will receive $41 for each share they own. That's a 24 percent premium to the company's Wednesday closing price of $32.20. The companies put the deal's value at about $3.8 billion.
DreamWorks will become part of the Universal Filmed Entertainment Group, which includes Universal Pictures.
Once the deal closes, DreamWorks co-founder and CEO Jeffrey Katzenberg will become chairman of DreamWorks New Media. He'll also serve as a consultant to NBCUniversal, a unit of Comcast Corp.
Both companies' boards have approved the transaction, which is targeted to close by year's end.
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.