NBCUniversal, a division of Comcast, is buying DreamWorks Animation for $3.8 billion. The studio will become part of the Universal Filmed Entertainment Group, which includes Universal Pictures, Fandango, and NBCUniversal Brand Development.

Following the completion of the transaction, DreamWorks Animation CEO and co-founder Jeffrey Katzenberg will become chairman of DreamWorks New Media, which will be comprised of the company’s ownership interests in Awesomeness TV and NOVA. Mr. Katzenberg will also serve as a consultant to NBCUniversal.

Steve Burke (CEO, NBCUniversal):  Jeffrey Katzenberg and the DreamWorks organization have created a dynamic film brand and a deep library of intellectual property.  DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come.  We have enjoyed extraordinary success over the last six years in animation with the emergence of Illumination Entertainment and its brilliant team at Illumination Mac Guff studio.  The prospects for our future together are tremendous.

Comcast was advised by Davis Polk & Wardwell on legal matters.  DreamWorks Animation was advised on financial matters by Centerview Partners and on legal matters by Cravath, Swaine & Moore, and on legal matters by Munger Tolles & Olson.

The transaction is expected to close by the end of 2016, subject to antitrust approvals in the U.S. and abroad, as well as customary closing conditions.

[Image courtesy: Dreamworks Animation]