Comcast is buying Dreamworks Animation for $3.8 billion. The deal for the studio behind ''Shrek'' and ''Kung Fu Panda'' will help Comcast boost their family-friendly offerings. Bobbi Rebell reports.
Comcast is paying $3.8 billion for DreamWorks Animation, the Hollywood movie studio behind franchises including "Shrek," and "Kung Fu Panda". The 27 percent premium driving a big rally in shares of the company's stock. Comcast's Universal Pictures has already had success with family films like "Despicable Me," and "Minions" but this deal ramps up the portfolio even more. It also gives them new characters to tap for their theme parks and consumer products businesses. Craig Moffett of MoffettNathanson: (SOUNDBITE) CRAIG MOFFETT, FOUNDER AND SENIOR ANALYST, MOFFETTNATHANSON, (ENGLISH) SAYING: "They are borrowing a page from the Disney strategy, which has always been to take these animated characters from movies, move them into the theme parks, and use the theme parks and merchandising to keep them fresh, and build them into sort of perennial franchises, and, I think, Comcast is looking to do the same thing with these DreamWorks Animation characters." Also attractive to Comcast: DreamWorks growing TV business. Earlier this year DreamWorks signed a deal with Netflix to distribute some series and to develop original content for the streaming service. DreamWorks Animation was spun off from DreamWorks Studios in 2004.