On Thursday morning, Comcast Corporation (CCV) announced that it’s NBCUniversal division is acquiring DreamWorks Animation Studio In a $3.8 Billion deal. This merger is slated to be completed by the end of the year.
DreamWorks is known for it’s awesome movies such as Kung Fu Panda, Shrek, and How to Train Your Dragon.
Comcast said DreamWorks “will become part of the Universal Filmed Entertainment Group, which includes Universal Pictures, Fandango, and NBCUniversal Brand Development.”
NBCUniversal CEO Steve Burke said “DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come.” This venture puts them closer to their ambitions in competing with Disney.
This venture by Comcast would not only benefit them in the sense of the animation studio and movies, but it also bulks up their ambitions to build a more competitive market in digital media and streaming services. DreamWorks is already producing a TV series based on Classic’s Voltron for Netflix. In November, it will release a movie based on the Troll dolls, which it acquired the rights to in 2013.
Additionally, this venture appears to also include DreamWorks owned AwesomenessTV, which appeals to a younger audience in the digital marketplace.
While this merger is not set in stone, the deal includes a $200 million reverse breakup fee that Comcast would have to pay DreamWorks if regulators don’t approve the acquisition.
The Wall Street Journal first reported on the acquisition talks on Tuesday.