DreamWorks files IPO for animation unit

DreamWorks SKG, the film and television production company, said on Wednesday it plans to sell shares to the public of its animated film unit, which produced the popular films "Shrek" and "Chicken Run".

Founded a decade ago by three prominent entertainment industry moguls, DreamWorks SKG filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering of about $650 million of Class A stock in the animation arm.

Director and producer Steven Spielberg, former Disney executive Jeffrey Katzenberg and music mogul David Geffen formed the closely held company in hopes of creating a media empire, though it has abandoned the video arcade and music businesses into which it originally had ventured.

Katzenberg oversees DreamWorks Animation, which has been the star of the company's operations. "Shrek" was among the highest grossing films of 2001, taking in $268 million at U.S. box offices, and the sequel is now booming worldwide, with $425 million of U.S. gross through July 18.

Its films are made by computer-generated animation, an expensive process, but one seen as the future of an industry once dominated by hand-illustrated frames. It plans to release "Shark Tale" later this year with the voices of Will Smith and Angelina Jolie.

DreamWorks, based in Glendale, California, said it is one of the few producers of computer-generated animated films, which enhances their appeal to the public, but warned that if new competition were to emerge the popularity of the form could suffer.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

DreamWorks Animation lost $189 million last year on $296 million of revenue. In 2002, it lost $31 million on $456 million of revenue, according to the documents the company submitted to securities regulators.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

Investment banks Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are serving as joint book-running managers for the IPO.

DreamWorks Animation said the Class A shares will carry only one vote per share while Class B shares, which will be controlled by Katzenberg and Geffen, will have 15 votes per share.

A third class of shares, Class C, will be held by an entity controlled by Microsoft co-founder Paul Allen, and will have only one vote per share, but will have the right to elect one of the company's directors. Allen was one of the early investors in the DreamWorks venture.