LOS ANGELES, April 28 (UPI) -- Dreamworks Animation's chief executive and co-founder, Jeffrey Katzenberg, will step down to head DreamWorks New Media in a $3.8 billion deal with Comcast's NBCUniversal, the company announced Thursday.
In selling the studio to NBCUniversal, DreamWorks Animation stockholders will receive $41 in cash for each share of DreamWorks Animation common stock. Katzenberg will head up DreamWorks New Media, which will be made up of the company's ownership interests in Awesomeness TV and NOVA. Katzenberg will also serve as a consultant to NBCUniversal. Dreamworks is responsible for animated hits that include "Shrek" and "Kung Fu Panda."
"Having spent the past two decades working together with our team to build DreamWorks Animation into one of the world's most beloved brands, I am proud to say that NBCUniversal is the perfect home for our company; a home that will embrace the legacy of our storytelling and grow our businesses to their fullest potential," Katzenberg said.
The deal is similar to Disney's acquisition of Pixar for $7.4 billion in 2006, albeit on a much smaller scale. Comcast said Dreamworks "will become part of the Universal Filmed Entertainment Group, which includes Universal Pictures, Fandango, and NBCUniversal Brand Development."
"Jeffrey Katzenberg and the DreamWorks organization have created a dynamic film brand and a deep library of intellectual property. DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come," Steve Burke, CEO of NBCUniversal, said.
Comcast said it expects the deal to be approved by federal regulators and close by the end of 2016.