Comcast confirms it will buy DreamWorks Animation

Comcast’s NBCUniversal has confirmed it will buy DreamWorks Animation today after protracted negotiations.

DreamWorks Animation will be acquired at $41 a share which gives the studio a market valuation close to $3.8 billion. The studio’s share price has skyrocketed in early morning trading with news of the deal that will be finalized by the last quarter of this year.

Jeffrey Katzenberg will become a consultant to NBCUniversal and Chairman of DreamWorks New Media as part of the deal. In 2015, DreamWorks Animation announced significant job cuts after several feature releases underperformed at the Box Office. The studio had previously attempted to find a merger partner. The company then slashed a reported 400 jobs as it restructured to reduce costs.

NBCUniversal Chief stated that the acquisition would help, “grow our film, television, theme parks and consumer products businesses for years to come.”

DreamWorks Animation has produced many popular films including “How to Train Your Dragon,” “Shrek” and “Kung Fu Panda.” Today’s news will give new life to the studio and secure its future for many years to come as NBCUniversal looks to capitalize on these franchises, however, some analysts believe the studio is over-valued.