Comcast’s NBC Universal is set to acquire DreamWorks in a $3.8 billion deal if all regulatory hurdles are crossed by end of the year, shareholders in DreamWorks will receive $41 in cash per share of stock — a roughly 50% premium from where the stock was trading before the merger talks were reported earlier this week.
Both Comcast and DreamWorks are smaller than Disney and Pixar, respectively, but the ambitions are similar.
The deal includes a $200 million reverse breakup fee that Comcast would have to pay DreamWorks if regulators don’t approve the acquisition.
DreamWorks will bring a number of popular film franchises to NBCUniversal including “Shrek,” “Madagascar,” “Kung Fu Panda” and “How to Train Your Dragon.
Katzenberg, CEO of DreamWorks Animation, stands to make $408 million based on his roughly 10 million shares in the company, the largest of any individual investor,according to TheWrap. Spielberg, whose production company Amblin Partners started under DreamWorks, will pocket $187.6 million from the 4.6 million shares of the company he owns.
Wall Street applauded the deal, sending the stock up as much as 24% on Thursday morning.
