This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Dreamworks Gets Awesome, Hopes for Hip and Groovy

NEW YORK (TheDeal) -- DreamWorks Animation SKG Inc. agreed this week to acquire YouTube network AwesomenessTV for $33 million in cash, plus contingent performance payments through 2015. Depending on AwesomenessTV's ability to meet undisclosed earnings targets, those payments could raise total consideration for the next-generation media company to $117 million.

AwesomenessTV, described as one of YouTube's "most subscribed-to teen networks," launched in June 2012. It has since signed up more than 55,000 channels, or home pages for AwesomenessTV accounts, while aggregating more than 14 million subscribers and 800 million video views.


Dreamworks shares were rising 3% to $21.30.

Brian Robbins, the founder and CEO of AwesomenessTV, created the concept after noticing his young sons spent a week's vacation watching video on their Macs instead of stationing themselves in front of their hotel room's big-screen television set. The observation so moved him that, despite being a veteran producer of traditional film and TV fare, he took the concept to Google Inc.'s YouTube LLC.

AwesomenessTV took shape quickly, with $3.5 million in funding from such investors as MK Capital and Greycroft Partners LLC. United Talent Agency and law firm Ziffren Brittenham LLP, which both helped Robbins assemble his network's senior management, went on to negotiate AwesomenessTV's deal with YouTube.

On Wednesday, while announcing the acquisition of AwesomenessTV for nearly 10 times its seed money, DreamWorks Animation CEO Jeffrey Katzenberg left no doubt that he planned to tap the skills of its founder for his own animated film studio. "Robbins has an extraordinary track record in creating family content both for traditional and new platforms," Katzenberg said, "and his expertise in the TV arena will be invaluable as we grow our presence in that space."

Moreover, in addition to leading AwesomenessTV, Robbins has been tasked with developing a DreamWorks Animation branded digital family channel -- one that builds on the Shrek studio's entire portfolio of intellectual property, resources and technology. Robbins seemed eager to assume the responsibility, not only calling it an "incredible opportunity" but claiming he couldn't wait to get started.


On coming to terms with DreamWorks Animation, United Talent Agency and Ziffren Brittenham reprised their roles as Robbins' and AwesomenessTV's representatives. The deal they constructed is expected to close later in May.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,014.38 +31.79 0.19%
S&P 500 1,980.10 +1.19 0.06%
NASDAQ 4,458.7220 +13.8130 0.31%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs