Hollywood studio DreamWorks Animation SKG Inc (DWA.O) would be interested in a merger with Viacom Inc’s (VIAB.O) Paramount Pictures, the company’s chief executive said on Tuesday.

“I could imagine that with a good financial partner coming with us, putting together the asset of Paramount and DreamWorks could be extremely valuable,” DreamWorks CEO Jeffrey Katzenberg said at the Morgan Stanley investor conference in San Francisco.

DreamWorks would not be interested in buying a stake in Paramount, he added.

Viacom is taking into consideration selling a “significant” group stake in Paramount Photographs, Chief Executive Philippe Dauman said last week.

DreamWorks thinking about Viacom's Paramount Pictures CEOThe entire studio will be worth $4 billion, according to the estimate by simply Sanford Bernstein analyst Jake Juenger.

Katzenberg, who worked with Paramount for 11 years, said the next 12 months for DreamWorks would be “choppy”.

DreamWorks, which is definitely in the middle of a turnaround, has recently been reducing its reliance in the volatile feature motion pictures business to concentrate in increasing income from certification its original content to media houses and online video streaming companies.

DreamWorks’ shares closed up 2.3 percent at $26.26, while Viacom ended 1.9 percent higher at $37.56.

Comments

comments