Logo

Variety

Jeffrey Katzenberg Hit With Lawsuit Over $3.8 Billion Comcast Deal

Jun 28, 2016  •  Post A Comment

DreamWorks Animation CEO Jeffrey Katzenberg has been hit with a lawsuit accusing him of making an improper “side deal” in connection with the company’s $3.8 billion sale to Comcast Corp., Variety reports.

“The Ann Arbor City Employees Retirement System, a DreamWorks shareholder, claimed in a suit filed in Delaware Chancery Court that Katzenberg breached his fiduciary duty to shareholders when he reached an agreement that will pay him 7% of profits, in perpetuity, from a subsidiary he will head — DreamWorks New Media,” Variety reports. “The suit called the arrangement an ‘extraordinarily valuable’ offshoot of the $41-per-share deal DreamWorks cut with Comcast.”

Comcast’s acquisition of DWA is expected to close by the end of this year.

The report quotes the lawsuit saying: “Had Katzenberg not received the extraordinarily valuable side deal, Comcast would have been required to increase the merger price to secure Katzenberg’s support.”

dreamworks animation

Your Comment

Email (will not be published)