Is DreamWorks Primed for a Pixar-like Move?
Created 02/03/2004 - 00:00
There's a report in Tuesday's NEW YORK POST that DreamWorks is "ramping up efforts to spin off its animation unit" as part of a potential sale to Hollywood studios. DreamWorks is reportedly in considerable debt (last year its ranking with rival studios dropped) and loans are coming up payable in a little more than a year. According to analysts, an animation spin-off would allow it to raise the necessary cash to float the losses, "while maintaining an lucrative production agreement," since animation is the only profitable center.
DreamWorks told the NYPOST, We have no plans to spin-off the animation unit at this time and declined comment to an AWN/VFXWORLD query.
How ironic, in light of Pixar's announcement last week that it's breaking free from its lucrative Disney partnership to go its own way as a production entity in search of a studio distribution deal.
At the same time, DreamWorks is also considering a potential initial public offering of its animation division to raise cash, according to NYPOST. In November, DreamWorks sold its record business to Universal Music Group for about $100 million.