News DreamWorks Animation to Acquire Classic Media Studio
posted on 2012-07-24 09:00 EDT
North American animation studio Dreamworks Animation announced on Monday that it has entered an agreement to purchase fellow North American animation studio and video distributor Classic Media for US$155 million. Dreamworks Animation will take on Classic Studio's undisclosed debt with the purchase, but either company may cancel the deal if it fails to close by October 20.
Classic Media holds rights to adapted anime titles such as Voltron and Saber Rider and the Star Sheriffs. The studio also has rights to the original 1954 Godzilla (Gojira) film and other TOHO live-action titles. German co-production group TV-Toonland sold the license of its anime- and manga-inspired animated TV series My Life Me to Classic Media in 2010. The company's other holdings include the animation series Rocky and Bullwinkle, Casper the Friendly Ghost, and VeggieTales as well as Rankin/Bass Productions titles such as Rudolph the Red-Nosed Reindeer and Frosty the Snowman.
Classic Media earned an operating profit of US$19.2 million in the year that ended on February 29. Dreamworks Animation President and Chief Financial Officer Lew Coleman said, "As part of Dreamworks Animation's ongoing diversification strategy, this acquisition combines our hit-driven business with Classic Media's extensive and sustainable library revenue stream.” Dreamworks Animation expects to complete the transaction to purchase Classic Media during the quarter that ends on September 30.
Thanks to Daniel Zelter for the news tip.
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