TheWrap on DreamWorks Animation’s Woes
TheWrap discusses a problem facing Jeffery Katzenberg. DreamWorks Animation is too big to be bought by anyone save a few media players, yet too small to qualify as a major studio. With no buyer, DreamWorks will be unable to put out more than two to three films a year.
“Katzenberg started this business hoping to create a Disney,” Michael Pachter, an analyst with Wedbush Morgan Securities, told TheWrap, referring to DreamWorks. “It’s 10 years later, and it’s not quite Disney yet.”
Their latest film, Kung Fu Panda 2, hasn’t been doing as well as they hoped and DVDs are not doing as well as they used to, and as a result, DreamWorks’ stock seems to be taking a beating. Due to this, Katzenberg is looking for new ways to exploit his franchises. While a knowledgeable person claims that Katzenberg intends on launching a television network to rival Nickelodeon, a DreamWorks spokesperson says there are no current plans.
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