DreamWorks Animation to Acquire Classic Media

GLENDALE: DreamWorks Animation has agreed to pay $155 million in cash to acquire Classic Media, securing access to a library of IP that includes Casper the Friendly Ghost, Where’s Waldo? and Lassie.

DreamWorks Animation sealed the deal with Boomerang Media Holdings, owned by Chicago-based private equity firm GTCR. "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, CEO 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."

Eric Ellenbogen, co-CEO of Classic Media, added, "No company knows the family entertainment business better than DreamWorks Animation and we are excited to join their family in a natural extension of our long-standing relationship that began years ago on Mr. Peabody & Sherman. Classic Media brings to the table extensive rights to some of the most beloved family entertainment brands in the world. Our combination with DreamWorks Animation will expand the opportunities for us and for our content and distribution partners around the globe."

For the year ended February 29, 2012, Classic Media earned net revenues of $82.2 million and an operating profit of $19.2 million. It owns over 450 film titles and more than 6,100 episodes of animated and live-action programming. It also owns one of the world’s largest comic book archives and media rights to the titles in the Golden Books library. Classic Media also operates a joint venture with Jay Ward Productions that manages the rights to the entire Jay Ward animated catalogue, which includes Rocky & Bullwinkle and Mr. Peabody & Sherman. DreamWorks Animation’s 3D feature film Mr. Peabody & Sherman is scheduled for release in December 2013.