Animation Stuff

Why DreamWorks Animation Needs A Buyer And Fast


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So, late last week, there was talk that Hasbro was looking into buying DreamWorks Animation.  When the news broke, the stock price for DreamWorks rose, while the stock price for Hasbro fell.  I mean, Hasbro is coming off a failed TV network, and DreamWorks needed someone to help improve audiences, and cash flow.  Well, over the weekend, the news broke that talks between Hasbro and DreamWorks ended, and on Monday, the stock price for Hasbro rose, while the stock price for DreamWorks dropped 13%.  Sure, the talks could resume in the future, but I don’t think you will see Hasbro buying anyone anytime soon.

This post is going to talk about why DreamWorks Animation needs a buyer, and fast.  The last year alone, their three films, Turbo, Mr. Peabody and Sherman, and How To Train Your Dragon 2, have unperformed in the box office.  In fact, many of their past films have really under-performed in the box office, and that means less revenue, and also means some employees have lost their jobs.  For starters, they are asking for $3 billion, and the market value is more around $2 billion.  When they tried to get SoftBank to buy DreamWorks, they were asking for $3.4 billion, which is way too much.  In their latest talks with Hasbro, they were asking for $2.3 billion.  And to add into the mix, CEO Jeffrey Katzenberg wanted to have a senior role at Hasbro, and SoftBank.  Sorry Jeffrey, if you are having to sell because you are in trouble, it means you are doing something wrong!

This sounds like DreamWorks is asking for way too much, and Jeffrey Katzenberg wants too much control, this is a two-step recipe for disaster!  If Jeffrey went on the ABC show Shark Tank and disclosed what was going on, he would be laughed at and kicked out the door.  In the Hasbro talks, Jeffrey was asking for $30 a share, and that is like asking a company to acquire you because you did something great, 10 years ago, and have been  struggling ever since.  This sounds like Jeffrey Katzenberg needs to put on his big boy pants, and face the fact that he is not going to get 100% of what he is asking for.  He is not going to get his $2.3 billion asking price, he is not going to eventually take over as CEO of the company who buys DreamWorks, and he is certainly going way over his head!

This sounds like Jeffrey Katzenberg wants it all.  And when people “want it all”, they will eventually blow up everything they worked hard to create, and it will result in people losing their careers, hurting people, and cause people to hate the company because one CEO “wants it all.”  Face it Jeffrey Katzenberg, you can not rely on the same old computer animated movies to succeed.  You need to invest in a different type of animation, online media, and TV shows.  But the TV shows have not done very well in the ratings, your YouTube channel DreamWorksTV only has around 300,000 subscribers, and your next movie The Penguins of Madagascar will probably bomb in the box office.

There has not been any imaginative movies that have come out from DreamWorks Animation over the past few years.  With the exception of the How To Train Your Dragon series, which I love.  The animated movies have featured less well-known characters, the same computer generated animation over and over again, lackluster writing, and not so great plots.  This is why every movie has not seen its projected ticket revenues, and DreamWorks has written down every movie they have released.  DreamWorks has to change, and fast, or the company will go bankrupt, and we will lose popular characters like Shrek and How To Train Your Dragon, forever.  I don’t want to see that happen!

It sounds like DreamWorks Animation needs someone new in the CEO position to turn the company around.  The potential mergers with SoftBank, and now Hasbro, would have been awesome.  I would have loved to see Shrek and Toothless teaming up with Optimus Prime and Twilight Sparkle, but Jeffrey Katzenberg blew it, and either he will wise up and get smart about the future of DreamWorks, or he will watch the company sink like the Titanic.  The choice is yours Jeffrey Katzenberg.

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