Comcast Holdings, Inc. announced last week that it will be entering into a deal with renowned animation firm Dreamworks Studios; purchasing over 50 percent of the latter company’s stocks for a whopping amount of $3.8 billion.
According to tech reports, the merger will place Dreamworks under the National Broadcasting Company’s (NBC) Universal Filmed Entertainment Group, which also facilitates the operations of Universal Pictures.
“DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come,” said Steve Burke, chief executive officer of Comcast’s NBC Universal (NBCU).
Jeffrey Katzenberg, chief executive officer of Dreamworks, will be repositioned in a new subsidiary dubbed as “DreamWorks New Media” as its chairman while also serving as a consultant for NBCU.
“As for my role, I am incredibly excited to continue exploring the potential of AwesomenessTV, NOVA and other new media opportunities, and can’t wait to get started,” he said.
The move is also expected to boost Comcast’s competition with Walt Disney Company’s Pixar Animation Studios, which is actually larger than the combined interests of Comcast and Dreamworks.