Comcast in talks with DreamWorks

The media conglomerate wants to buy DreamWorks Animation for more than US$3 billion, according to the Wall Street Journal. A combo that could rival Disney.

UNITED STATES (Reuters) - The Minions could take over Shrek's expanding menagerie, and that may not be so far far away. The Wall Street Journal reports "Minions" owner Comcast is in talks to buy the producer of the Shrek franchise, DreamWorks Animation. A deal for more than $3 billion could significantly strengthen Comcast as a competitor to Disney in family entertainment.

Comcast owns the NBCUniversal business that puts out films like "Despicable Me" and "Back to the Future" and theme parks that capitalise on those movies. It could get DreamWorks' animation studio and high margin TV business as well as AwesomenessTV, the company producing videos popular among the young.

DreamWorks has been trying to sell itself after producing some duds at the box office.

 

Calling the potential combo a "dream team", Macquarie Research analyst Amy Yong said, "DreamWorks would secure its position in family entertainment."

DreamWorks shares, which are down 37 per cent from their peak six years ago, rose sharply in early trading. Comcast also got a lift.