Comcast Corp. has closed its $3.8 billion acquisition of DreamWorks Animation, four months after announcing its plans to buy the studio.
Dreamworks Animation will become part of the Universal Filmed Entertainment Group, which includes Universal Pictures, Fandango and NBCUniversal Brand Development and is headed by Jeff Shell. Comcast made the announcement after the market closed Monday.
The deal calls for DWA stockholders to receive $41 in cash for each share of DWA common stock. DWA shares will no longer be listed on the NASDAQ.
The other component of the deal calls for DWA to redeem all $300 million aggregate principal amount outstanding of its 6.875% senior notes due Aug. 15, 2020, at a redemption price of 105.156% of the principal amount. That redemption will take place on Sept. 21.
Analysts believe that DreamWorks Animation will give Universal added clout in competing with rivals like Disney, Time Warner and Viacom in competing for kid-and-family audiences.
The DreamWorks Animation brand will remain intact as an imprint and DreamWorks Animation CEO Jeffrey Katzenberg will become chairman of DreamWorks Animation New Media, comprising its ownership stakes in AwesomenessTV and Nova, which will be part of NBCUniversal.
Katzenberg will also serve as a consultant to NBCUniversal.
DreamWorks Animation announced on Aug. 3 second quarter earnings that came in above Wall Street expectations. Revenue at the company behind “Shrek” and “How to Train Your Dragon” hit $220.9 million, up 29% from the year-ago period.
Fox has handled DreamWorks Animation’s release slate since 2013, starting with “The Croods,” but it’s uncertain how much longer it will do so now that the deal has closed.