worker_bee
10-28-2004, 01:07 AM
http://biz.yahoo.com/rb/041027/media_dreamworks_ipo_1.html
Reuters
DreamWorks Animation IPO Raises $812 Mln
Wednesday October 27, 6:36 pm ET
By Nicole Maestri and Bob Tourtellotte
NEW YORK/LOS ANGELES (Reuters) - DreamWorks Animation SKG Inc.'s initial public offering raised a more-than-expected $812 million on Wednesday in a deal that marked the first IPO by a major movie studio in seven year
Shares of the producer of computer animated films priced well above their estimated range as the company rides high on the box office success of its "Shark Tale," which follows the summer smash hit "Shrek 2."
The IPO priced 29 million shares at $28 per share, the underwriter said. It had estimated its shares would price in the range of $23 to $25 per share.
DreamWorks Animation sold 25 million shares in the IPO, while shareholders sold 4 million shares, according to its latest regulatory filing.
The deal separates the animation group from the live-action unit of DreamWorks, formed a decade ago by moguls Steven Spielberg, David Geffen and Jeffrey Katzenberg. It also allows early investors, like Microsoft Corp. co-founder Paul Allen, to cash out some of their investment.
DreamWorks Animation, based in the Los Angeles suburb of Glendale, California, will be controlled by Katzenberg and Geffen. Katzenberg will be chief executive and Geffen will sit on the board. Roger Enrico, former chairman and CEO of PepsiCo Inc.(NYSE:PEP (http://finance.yahoo.com/q?s=pep) - News (http://finance.yahoo.com/q/h?s=pep)), will be chairman; Spielberg will not hold a seat.
Earlier this month, the company debuted "Shark Tale," a story about gangster fish, and it has become a hit with nearly $140 million at U.S. and Canadian box offices. That follows the blockbuster success of "Shrek 2," which has earned about $850 million globally since its May debut.
But DreamWorks Animation faces tough competition from Pixar Animation Studios Inc. (NasdaqNM:PIXR (http://finance.yahoo.com/q?s=pixr) - News (http://finance.yahoo.com/q/h?s=pixr)) and The Walt Disney Co. (NYSE:DIS (http://finance.yahoo.com/q?s=dis) - News (http://finance.yahoo.com/q/h?s=dis)), whose new computer animated film, "The Incredibles" debuts in theaters Nov. 5.
To counter that film, DreamWorks Animation is readying the Nov. 5 launch of "Shrek 2" on video and DVD. In recent years, home entertainment revenues have surpassed box office sales, and the booming DVD market supplies steady cash for studios.
The animation company will use cash from the IPO to pay off debt and fund production. Its aggressive film plans call for two computer-animated movies a year, which no studio has done.
The deal gives DreamWorks Animation a market capitalization of roughly $3 billion compared with Pixar, which has a market capitalization of roughly $4.5 billion.
In the first six months of this year, when "Shrek 2" was released, DreamWorks Animation reported net income of $120.7 million, but it lost $187 million in 2003.
Pixar reported earnings of $64.1 million for the first six months of this year, and for the fiscal year ended Jan. 3, it earned $124.8 million.
The last initial public offering for stock in a major movie studio was for shares of Metro-Goldwyn-Mayer Inc. (NYSE:MGM (http://finance.yahoo.com/q?s=mgm) - News (http://finance.yahoo.com/q/h?s=mgm)) in November 1997. MGM is now in the process of being acquired by a group of investors led by Sony Corp (Tokyo:6758.T - News (http://finance.yahoo.com/q/h?s=6758.t))
Underwriters of the DreamWorks deal, led by Goldman Sachs and JPMorgan, will have the right to buy an additional 4.35 million shares to cover over-allotments, according to regulatory filings. The stock will trade on the New York Stock Exchange under the symbol "DWA" (NYSE:DWA (http://finance.yahoo.com/q?s=dwa) - News (http://finance.yahoo.com/q/h?s=dwa)).
Reuters
DreamWorks Animation IPO Raises $812 Mln
Wednesday October 27, 6:36 pm ET
By Nicole Maestri and Bob Tourtellotte
NEW YORK/LOS ANGELES (Reuters) - DreamWorks Animation SKG Inc.'s initial public offering raised a more-than-expected $812 million on Wednesday in a deal that marked the first IPO by a major movie studio in seven year
Shares of the producer of computer animated films priced well above their estimated range as the company rides high on the box office success of its "Shark Tale," which follows the summer smash hit "Shrek 2."
The IPO priced 29 million shares at $28 per share, the underwriter said. It had estimated its shares would price in the range of $23 to $25 per share.
DreamWorks Animation sold 25 million shares in the IPO, while shareholders sold 4 million shares, according to its latest regulatory filing.
The deal separates the animation group from the live-action unit of DreamWorks, formed a decade ago by moguls Steven Spielberg, David Geffen and Jeffrey Katzenberg. It also allows early investors, like Microsoft Corp. co-founder Paul Allen, to cash out some of their investment.
DreamWorks Animation, based in the Los Angeles suburb of Glendale, California, will be controlled by Katzenberg and Geffen. Katzenberg will be chief executive and Geffen will sit on the board. Roger Enrico, former chairman and CEO of PepsiCo Inc.(NYSE:PEP (http://finance.yahoo.com/q?s=pep) - News (http://finance.yahoo.com/q/h?s=pep)), will be chairman; Spielberg will not hold a seat.
Earlier this month, the company debuted "Shark Tale," a story about gangster fish, and it has become a hit with nearly $140 million at U.S. and Canadian box offices. That follows the blockbuster success of "Shrek 2," which has earned about $850 million globally since its May debut.
But DreamWorks Animation faces tough competition from Pixar Animation Studios Inc. (NasdaqNM:PIXR (http://finance.yahoo.com/q?s=pixr) - News (http://finance.yahoo.com/q/h?s=pixr)) and The Walt Disney Co. (NYSE:DIS (http://finance.yahoo.com/q?s=dis) - News (http://finance.yahoo.com/q/h?s=dis)), whose new computer animated film, "The Incredibles" debuts in theaters Nov. 5.
To counter that film, DreamWorks Animation is readying the Nov. 5 launch of "Shrek 2" on video and DVD. In recent years, home entertainment revenues have surpassed box office sales, and the booming DVD market supplies steady cash for studios.
The animation company will use cash from the IPO to pay off debt and fund production. Its aggressive film plans call for two computer-animated movies a year, which no studio has done.
The deal gives DreamWorks Animation a market capitalization of roughly $3 billion compared with Pixar, which has a market capitalization of roughly $4.5 billion.
In the first six months of this year, when "Shrek 2" was released, DreamWorks Animation reported net income of $120.7 million, but it lost $187 million in 2003.
Pixar reported earnings of $64.1 million for the first six months of this year, and for the fiscal year ended Jan. 3, it earned $124.8 million.
The last initial public offering for stock in a major movie studio was for shares of Metro-Goldwyn-Mayer Inc. (NYSE:MGM (http://finance.yahoo.com/q?s=mgm) - News (http://finance.yahoo.com/q/h?s=mgm)) in November 1997. MGM is now in the process of being acquired by a group of investors led by Sony Corp (Tokyo:6758.T - News (http://finance.yahoo.com/q/h?s=6758.t))
Underwriters of the DreamWorks deal, led by Goldman Sachs and JPMorgan, will have the right to buy an additional 4.35 million shares to cover over-allotments, according to regulatory filings. The stock will trade on the New York Stock Exchange under the symbol "DWA" (NYSE:DWA (http://finance.yahoo.com/q?s=dwa) - News (http://finance.yahoo.com/q/h?s=dwa)).