Comcast Corp. is now the biggest media company
Comcast Corp.,an internationally recognized mass media company, is now the largest media company in the world. It is currently most expansive broadband provider, holds a foothold in the entertainment industry and operates Comcast Interactive Media owner, which is used to capitalize on the latest digital trends. Due to major mergers, acquisitions and the creation of popularity entities such as Hulu, Comcast is on the road to industry wide domination.
What is the latest M&A deal in the works?
On April 28, Comcast announced that its NBCUniversal division will buy the famous DreamWorks Animation studio, admired for its television series, consumer products and feature films, in a deal valued at around $3.8 billion, according to CNN. This deal is roughly 50 percent above what DreamWorks' stock was trading at before before news broke about the potential acquisition. DreamWorks studio has made a name for itself over the years due to high-grossing films such as "Ku Fu Panda," "How to Train Your Dragon" and "Madagascar."
Comcast already owns one of Hollywood's more influential film studios, Universal Studios, along with smaller subsidiary companies such as Illumination Entertainment, Working Title Films and Focus Features. Through its ownership of NBCUniversal, it acquired NBC-owned local television stations across the nation, along with all associated Weather Channel Companies, the MLB Network and Latin America Pay Television Service, among many other services and channels.
"Jeffrey Katzenberg and the DreamWorks organization have created a dynamic film brand and a deep library of intellectual property," Steve Burke, CEO of NBCUniversal, explained. "DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come. We have enjoyed extraordinary success over the last six years in animation with the emergence of Illumination Entertainment and its brilliant team at Illumination Mac Guff studio."
What does this deal mean for DreamWorks?
This deal will broaden both companies' reach into the media and entertainment industries. DreamWorks CEO Jeffrey Katzenberg will step down from his position, though his new title will be the Chairman of DreamWorks New Media, and he will remain an important asset in Awesomeness TV and NOVA, two of DreamWorks digital companies. Katzenberg stated that he believes NBCUniversal to be the right parent company for one of the country's most admired brands in the entertainment industry and will help DreamWorks reach its full potential.
"This agreement not only delivers significant value for our shareholders, but also supports NBCUniversal's growing family entertainment business," Katzenberg said.
The deal is still subject to antitrust approvals both in the U.S. and overseas, though company officials are confident that the deal will close by the end of the year.