GLENDALE, California – DreamWorks Animation SKG, Inc. today announced that it has entered into an agreement to acquire Classic Media for US$155 million in cash from Boomerang Media Holdings.
Classic Media’s library of intellectual property, which is focused on family characters and brands, features a vast collection of filmed entertainment with over 450 titles and more than 6,100 episodes of animated and live-action programming. Classic Media owns one of the world’s largest comic book archives and media rights to the titles in the Golden Books library, which have sold over two billion copies worldwide. Their properties have been distributed in over 170 territories around the globe.
With well-established titles such as Casper the Friendly Ghost, Where’s Waldo?, Lassie, The Lone Ranger, George of the Jungle and Rocky & Bullwinkle, Classic Media’s properties have been a fixture in mainstream entertainment for decades. The Christmas Classics—Frosty the Snowman, Rudolph the Red-Nosed Reindeer and Santa Claus is Comin’ to Town—are the longest-running, highest-rated holiday specials in television history. Classic Media counts among its holdings contemporary bestsellers such as VeggieTales and the beloved Olivia property, as well as hits Postman Pat and Noddy in international markets.
“Classic Media brings a large and diverse collection of characters and branded assets that is extremely complementary to DreamWorks Animation’s franchise business, and we plan to leverage it across our motion picture, television, home entertainment, consumer products, digital, theme park and live entertainment channels,” said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation.
“Founders and co-CEOs Eric Ellenbogen and John Engelman—seasoned executives with over 20 years of industry experience and a proven track record of success in managing high-quality content—have built an amazing team at Classic Media and are a welcome addition to the DreamWorks Animation family.”
“For over 75 years, Classic Media’s iconic properties have entertained kids and families around the world with a unique, cross-generational appeal that is also a defining characteristic of DreamWorks Animation’s films,” added Bill Damaschke, Chief Creative Officer at DreamWorks Animation. “We believe their characters and brands will continue to serve as a creative magnet for the industry’s top directors, producers and artists.”
For the 12 months ended February 29, 2012, Classic Media earned net revenue of US$82.2 million and operating profit of US$19.2 million. The acquisition of Classic Media will be financed through a combination of cash and borrowings under DreamWorks Animation’s revolving credit facility. The purchase price of US$155 million includes amounts required to retire indebtedness.
The transaction is subject to customary closing conditions, including the expiration or termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. DreamWorks Animation expects that the transaction will be completed during the quarter ended September 30, 2012.
