BREAKING: NBCU Buys DreamWorks Animation for $3.8 Billion

NBCUniversal announced this morning that it has bought DreamWorks Animation and will add it to the Universal Filmed Entertainment Group.

According to reports, Chris Meledandri, head of Universal’s Illumination Entertainment animation studio, will oversee operations.

The DreamWorks Animation brand will remain intact as an imprint.

Under the terms of the agreement, DreamWorks Animation has an equity value of about  $3.8 billion and stockholders will receive $41 in cash for each share of DreamWorks Animation common stock.

The agreement has been approved by the boards of directors of DreamWorks Animation and Comcast, and the controlling shareholder of DreamWorks Animation has approved the agreement by written consent.

Following the completion of the transaction — expected in late 2016 — DreamWorks Animation CEO and co-founder Jeffrey Katzenberg will become Chairman of DreamWorks New Media, which will be comprised of the company’s ownership interests in Awesomeness TV and NOVA. Katzenberg will also serve as a consultant to NBCUniversal.

“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,” said Katzenberg in a press release. “This agreement not only delivers significant value for our shareholders, but also supports NBCUniversal’s growing family entertainment business. As for my role, I am incredibly excited to continue exploring the potential of AwesomenessTV, NOVA and other new media opportunities, and can’t wait to get started.”