Comcast quiet on DreamWorks deal

Kids-logo-460_2US media giant Comcast yesterday refused to comment on mounting speculation it is poised to buy toon studio DreamWorks Animation for US$3 billion.

Brian RobertsComcast management declined to address the rumours as the firm posted strong first quarter 2016 financial results.

“As a reminder, because of the FCC’s anti-collusion rules for the broadcast incentive option, we cannot discuss or answer any questions related to the option or spectrum today, nor will we be commenting about recent rumors or speculation about any M&A transaction,” Jason Armstrong, Comcast’s senior VP, investor relations told analysts on an investor call.

Quizzed on M&A plans, Comcast chairman and CEO Brian Roberts said: “it’s been five years since we closed [the acquisition of] NBCUniversal and it’s been a wonderful experience in all regards, and exceeded our expectations in almost every business. We feel we’re better together.”

Analysts and commentators have been largely positive about a possible deal, which would place Shrek studio DreamWorks alongside Universal Pictures NBCUniversal and Minions producer Illumination Entertainment.

DreamWorks’ share price has in turn have jumped from US$27.12 a share to a current price of US$32.20. The US$3 billion price tag attached to the Comcast deal would deliver a significant premium of around US$35 a share.

The deal would be the biggest content move Comcast has made since buying NBCU, initially taking 51% in 2009 before moving for the rest in 2013.