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Flushed Away Spurs DreamWorks Write-Down

DreamWorks Animation has issued a statement warning investors of a potentially substantial earnings write-down on DreamWorks/Aardman Animations-produced FLUSHED AWAY, which has only made $40.5 million since its opening Nov. 3, 2006. The company said that the film's estimated were $143 million. Specifics of the write-downs were not released.

The warning was announced with an unrelated announcement of plans for a secondary offering of $330 million in stock controlled by investor Paul Allen. DWA said it would not garner any funds from the proposed sale of 11.6 million Allen shares. However, the company did say Steven Spielberg, Jeffrey Katzenberg and David Geffen plan to purchase $10 million of the shares.

This news only adds more fuel to the rumors that DreamWorks will walk away from its five-picture deal with Aardman. As part of that pact, the studio has the right to end the deal at any time.

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Rick DeMott
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