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Comcast Buys DreamWorks Animation SKG
Updated 9:55 am April 28 - What was rumor yesterday is reality today. Comcast will buy Dreamworks Animation SKG for $3.8 billion.
Philadelphia-based Comcast has finalized a deal to acquire DreamWorks Animation SKG. The $3.8-billion purchase of the studio by the Philadelphia-based cable TV giant became official this morning. With this move, Comcast becomes a viable rival to Walt Disney when it comes to producing family entertainment.
Comcast is no stranger to Hollywood, it already owns Universal Studios. However, DreamWorks bolsters the company's position when it comes to animated films and related theme park exhibits. DreamWorks Animation is responsible for popular franchises such as Shrek, How to Train Your Dragon, and Madagascar. In all, the studio's movies have grossed over 13 billion dollars worldwide (says Wikipedia).
This move speaks to the desire major content providers have to control the content they deliver. Comcast is already a major player in content creation given its ownership of NBC/Universal, which generated $28.5 billion in revenue and $4.8 billion in profit last year. Comcast itself brought in $74 billion in revenue in 2015, which is 11 times more than Netflix. As a matter of perspective, the DreamWorks Animation acquisition would cost Comcast the equivalent of three weeks of revenue.
Disney is a much bigger fish than DreamWorks—the company is almost the size of Comcast. However, with this acquisition, it will gain another tool with which to take on Disney, the undisputed champ of family-friendly entertainment. Clearly Comcast is adapting to changes in the market and doing so from a position of strength.
Last edited by imagic; 04-28-2016 at 07:21 AM.