NBCUniversal to Acquire DreamWorks Animation for $3.8 Billion (1 Viewer)

[Todd Erwin]

Curious how much Fox will get to buyout the distribution deal....

http://variety.com/2016/biz/news/dreamworks-animation-3-8-billion-nbcuniversal-comcast-1201762634/

 

[Sam Favate]

Katzenberg said he will leave if the deal goes through. I wonder what he'll do?

http://www.cartoonbrew.com/business...-new-details-comcast-negotiations-139187.html

 

[Sam Posten]

Uhhhh...

After the sale closes, DreamWorks Animation CEO Jeffrey Katzenberg will become chairman of DreamWorks Animation New Media, comprising its ownership stakes in AwesomenessTV and Nova, which will be part of NBCUniversal although it’s unclear where the unit will be housed within the company. Katzenberg will also serve as a consultant to NBCUniversal.

 

[Edwin-S]

This is bad news.

 

[Josh Steinberg]

This is bad news.

Why?

 

[revgen]

It appears that Dreamworks is being bought solely for it's intellectual property. They may not be making films anymore. Which is surprising since Home and Kung Fu Panda 3 made good money at the box office the last couple years.

 

[Sam Favate]

They may still turn out movies, but most of them will be sequels.

 

[steve jaros]

From Warner's decision to dramatically expand and coordinate their DC movies to this move by Universal, Disney is dominating the Hollywood mindset right now. Everyone wants to duplicate the money-printing machine of their Pixar + Marvel + LucasFilm stable.

Of course, like all fads, or even if it isn't a fad, this strategy will run its course. They all do, eventually. Profits are inevitably driven by competition towards zero, until the next brainstorm takes hold.

 

[Edwin-S]

Why?

For what Revgen said. They bought DWA simply to mine it's existing IP. DWA as a feature animation studio is going to cease to exist once these guys are done with it.

 

[Josh Steinberg]

My take is that it's not like they were currently doing a lot. The Shrek franchise seems over, so they've got what, How To Train Your Dragon? It just seems like they've been crippled as a studio since the live action portion of the studio crumbled. Katzenberg is still onboard, and now he'll have more reliable access to capital to finance whatever projects he wants to do next. Sounds like the stuff I like will thus be able to continue. Doesn't seem all bad to me.

 

[TravisR]

For what Revgen said. They bought DWA simply to mine it's existing IP. DWA as a feature animation studio is going to cease to exist once these guys are done with it.

By no means do I know the ins and outs of the situation but wouldn't it be more likely that, like Steve said, they're buying an animation unit in an effort to mimic Disney's success? No doubt any past movie that was successful is going to be sequelized or rebooted or spun-off forever but I think they may try one or two new ideas and see if it makes them a bunch of money too.

 

[Nate Spidgewood]

But what does this mean for DreamWorks' attempts to return to hand-drawn animation with their hybrid movie Me and My Shadow?

(Coincidentally enough, this news is like a callback to eleven years ago in 2005, when NBCUniversal tried to buy the live action DreamWorks studio before Viacom/Paramount stepped in and bought it instead. Though I'm glad to see both DreamWorks companies go back to the Universal fold and come full circle now.)

 

[Edwin-S]

It's possible, but DWA's biggest successes have run their course as far as sequels have gone. HTTYD2 wasn't a flop but it underperformed expectations by a lot. KFP 3 has done okay, but each succeeding sequel has opened to lower opening weekend returns than the last.

IMO, If they are banking on those shows as continuing franchises then they paid too much for DWA. The only bright point, maybe, is if they think there is a lot of upside potential with Dreamworks Oriental in China, assuming that subsidiary was part of the deal.

 

[TravisR]

IMO, If they are banking on those shows as continuing franchises then they paid too much for DWA.

That's would be my take on it too. Disney a mere $200 million more for the money printing press that is Star Wars and I can't imagine any of the Dreamworks franchises making anywhere near that kind of money from movies or merchandise at this point. People might love the Minions but they ain't worth $3.8 billion.

 

[Edwin-S]

But what does this mean for DreamWorks' attempts to return to hand-drawn animation with "Me and My Shadow".

I'd say that any plans to return to 2D handdrawn feature animation are dead in the water with Meledandri being put in charge of DWA.

 

[Edwin-S]

That's would be my take on it too. Disney a mere $200 million more for the money printing press that is Star Wars and I can't imagine any of the Dreamworks franchises making anywhere near that kind of money from movies or merchandise at this point. People might love the Minions but they ain't worth $3.8 billion.

Minions was actually made by Illumination. The animation studio founded by Meledandri, who is assuming the reins at DWA. However, I get the gist of what you were saying.

 

[Malcolm R]

HTTYD2 wasn't a flop but it underperformed expectations by a lot.

HTTYD2 may have underperformed domestically, but worldwide it was a bigger hit than the original ($622 million vs. $495 million).

 

[Edwin-S]

HTTYD2 may have underperformed domestically, but worldwide it was a bigger hit than the original ($622 million vs. $495 million).

Domestic returns still hold sway on whether sequels get made; although, that mentality is starting to become less prevalent in decision making, given that overseas box office is growing compared ti the domestic market.