Broadcast and cable company Comcast Corp. is reportedly in talks to acquire DreamWorks Animation SKG Inc. for about $3 billion. This deal is expected to be a possible competitor to Walt Disney Co.
The Wall Street Journal reported that Comcast is engaging in such talks to expand its reach and operations. The company's Universal Studios is responsible for big films like "Minions" and "Despicable Me."
When it merges with DreamWorks, the same report said that it will double its efforts to go against the works of Disney. DreamWorks is well-known for big movies like "Madagascar," Kung Fu Panda," and "Shrek."
Despite these rumors, The Wall Street Journal said that a deal could not be reached soon. It highlighted that the market value of DreamWorks is estimated to be $2.3 billion. Comcast is expected to release its financial results this coming Wednesday.
According to The New York Times, the possible merger could mean great things for Comcast since it will mean more sales and additional capacity for it to make quality films with the help of the Universal's animation division, Illumination Entertainment.
Illumination's chief executive Christopher Meledandri is expected to be the person who will run the operation. Meledandri is the mind behind "Despicable Me."
It was added in the same report that a spokesperson DreamWorks Animation has not yet commented on the issue. Similarly, Comcast representatives have also not given any reaction on the possible merger.
Engadget noted that Dreamworks has earlier been rumored to merge with other companies like Softbank, Hasbro and Fox. But now that a Comcast merger is now possible, the same report said that one of the major considerations for this is DreamWorks' collaboration with Netflix in creating programming hours for television and the internet.
Though the deal is still far from happening, many are still hoping it will materialize to provide great competition for Disney. Would you like to see this powerful merger?
