Lawsuit Accuses Jeffrey Katzenberg of Unfair Side Deal in Sale to Comcast

Jeffrey Katzenberg Comcast Merger
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A public employees union has sued Jeffrey Katzenberg, accusing the DreamWorks Animation CEO of improperly profiting from a lucrative “side deal” that he made as part of the company’s $3.8 billion sale to Comcast Corp.

The Ann Arbor City Employees Retirement System, a DreamWorks shareholder, claimed in a suit filed in Delaware Chancery Court that Katzenberg breached his fiduciary duty to shareholders when he reached an agreement that will pay him 7% of profits, in perpetuity, from a subsidiary he will head — DreamWorks New Media.

The suit called the arrangement an “extraordinarily valuable” offshoot of the $41-per-share deal DreamWorks cut with Comcast. The purchase is set to close by the end of 2016.

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At the close of the deal, Katzenberg will shift from CEO of the cartoon maker to chairman of DreamWorks New Media, overseeing Awesomeness TV and a 3D animation business. His base pay will be just $1, but with the profit-sharing added on he stands to make much more.

“Had Katzenberg not received the extraordinarily valuable side deal, Comcast would have been required to increase the merger price to secure Katzenberg’s support,” the lawsuit said. It said such an arrangement violated the corporation’s charter and that minority shareholders are entitled to the same treatment in a sale as the CEO.

If he loses the case, Katzenberg could be forced to pay damages, including a share of the profits from the new media deal.

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  1. Kathleen says:

    Jeffery is the 8th dwarf GREEDY!

  2. IT--II--IT says:

    Meanwhile – – —WORD continues to spread like flame across a lake of gasoline
    that the Hollywood franchise slum IS – – –and pretty much always was- – –
    ————————– – – – 100% globalist mafia INTEL RUN – – – ——————————-

    HOLLYWOOD is SMOKE !

    JUST a matter of TIME – – -in this, the 11th HOUR of RED CHINA handover
    and OPEN globalist mafia takedown and overrun.

    JUST a MATTER of TIME—– – – –

  3. Ann says:

    The midget exposed.

  4. Stinkythecat says:

    His greed knows no bounds.

  5. Phillip Ayling says:

    Wasn’t Jeffrey whining just the other day about 3D movies and the greedy Producers who killed that potential golden goose. He will never have enough money.

    • EricJ says:

      Oh, fer…Okay, what’s “dying off” NOW, Jeff, just because Dreamworks didn’t have any luck with it? .

  6. Greggan says:

    A CEO of a publicly traded company shouldn’t be making side-deals to enrich himself ahead of the shareholders … except in Hollywood.

  7. Martin says:

    All the skeletons in his, Geffen’s & Spielberg’s closets I wonder about.

  8. EricJ says:

    What, Jeffrey Katzenberg “unfair” or engaging in weaselly self-profiting Dreamworks practices? But the man has a Humanitarian Oscar! ;)

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