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DreamWorks Animation SKG Sets IPO Price

On Oct. 12, 2004, DreamWorks Animation SKG Inc. set its planned initial public offering at 29 million shares that could raise up to $725 million. DreamWorks Animation, a unit of the DreamWorks movie studio formed by Jeffrey Katzenberg, Steven Spielberg and David Geffen, said in a regulatory filing that it set an estimated offering price of $23 to $25 per share for the sale of 29 million Class A shares. Under the IPO, DreamWorks will offer 25 million shares and selling shareholders will sell an additional 4 million shares, according to an amended offering document filed with the U.S. Securities and Exchange Commission.

This announcement comes on the heels of the studio film SHARK TALE, finishing #1 at the box office for the second straight week. The funny fish flick has earned DreamWorks $87.35 million in just two weeks.

DreamWorks Animation said it will have 105.6 million shares outstanding after the IPO, including 57.4 million Class A shares, 48.2 million Class B shares and 1 Class C share.

The Class C share is owned by Microsoft co-founder Paul Allen, who is also the company's largest Class A shareholder, and carries the right to elect one director, voting as a separate class. Allen will sell 2.3 million shares in the IPO, according to the filing. After the offering, Allen will own 34.5 million Class A shares and will have 4.4% total voting power. Class A shares carry one vote per share, while Class B shares carry 15 votes per share. The Class C share carries one vote.

DreamWorks will use the IPO to pay off original investors in the studio.

Other selling shareholders include Vivendi Universal Ent., which is selling 494,697 Class A shares in the IPO. DreamWorks founders Katzenberg and Geffen will not sell off any of their stake during the IPO. The underwriters, led by Goldman Sachs and JPMorgan, will have the right to buy an additional 4.35 million shares to cover over-allotments.

The stock will trade on the New York Stock Exchange under the ticker symbol "DWA.N."

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Rick DeMott
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