DreamWorks Animation announced today (Aug. 6, 2007) that DW Investment II Inc. ("DWI II"), an entity controlled by Paul Allen, will sell approximately 10 million shares of the company's Class A common stock in a registered public offering underwritten by Goldman, Sachs & Co. and Bear, Stearns & Co. Inc. Allen is also resigning from the animation company's board of directors.
Additionally, the DreamWorks Animation board of directors increased the size of its existing share repurchase program to an aggregate amount of $150 million it will buy directly from DWI II at the per-share price at which the underwriters purchased shares from DWI II in the public offering.
"The reduction in our position in DreamWorks Animation is part of an ongoing effort to rebalance the Vulcan Capital portfolio," said Allen. "I am pleased to have been a principal investor in DreamWorks since its inception and proud of the company's many successes to date."
Following completion of the offering and the repurchase of shares, DWI II's will still own Class C common stock in DreamWorks.
"There would be no DreamWorks without Paul Allen," said DreamWorks ceo Jeffrey Katzenberg. "I want to thank him for all he has done for DreamWorks Animation as a board member and as a shareholder. Paul has been and will continue to be a strong supporter and advisor for our company."