World News

Comcast in discussions to buy DreamWorks Animation

Published on: April 28th, 2016

The parent of Universal Pictures is in talks to buy the company for more than $3bn.

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An acquisition could lead to Comcast merging Universal Pictures with DreamWorks Animation. Chief executive Jeffrey Katzenberg, who has been CEO of DreamWorks since it became its own company in 2004, is expected to leave if the deal goes ahead, according to people familiar with the matter.

The report revives merger speculation surrounding DreamWorks Animation since 2014, which included talks with Hasbro and Japan’s SoftBank Group Corp.

The studio has reduced its film costs and the number of films it makes a year in an attempt to refocus on making the feature films profitable.

The company’s shares slipped 0.1% to close at $27.12 in New York on Tuesday. Comcast, which reports earnings early Wednesday, climbed 0.1% to $61.05.

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