How about some news you can use as Variety is reporting that DreamWorks announced today that it will be moving forward with an initial public offering of its animation unit as it has filed with the SEC to sell up to $650 million worth of stock, that is a whole lotta Shrek!
Apparently the privately owned company has been considering this move all year long and looks to raise some fresh cash and use $175 million of the net IPO proceeds for the company and the rest will be used to pay down debt it will assume from DreamWorks Studios as part of the separation.
DreamWorks Animation has about 1,100 employees and hopes to become the next Pixar, which apparently is back in negotiations with the Mouse House after walking away last year when the partners couldn’t agree on terms.
DreamWorks plans to release eight animated movies by the end of 2007 – most computer animated and the IPO will be led by the investment banks Goldman, Sachs & Co. and J.P. Morgan.
According to the filing, DreamWorks lost $25.9 million for the quarter ended in March on revenue of $40.8 million, compared with a net loss of $11.9 million on revenue of $48.2 million in the year-earlier period.
DreamWorks is the studio responsible for such animated hits as Shrek and Shrek 2, along with the upcoming animated release Shark Tale starring Will Smith, Robert De Niro, Renée Zellweger, Angelina Jolie, Jack Black, Martin Scorsese, Peter Falk, Michael Imperioli, Vincent Pastori, Kevin Pollack, Doug E. Doug and Ziggy Marley.
