If We Draw It, They Will Pay
Today saw DreamWorks Animation's (NYSE: DWA) extremely successful IPO. Priced at $28 per share, well above the expected share range of $23 to $25, the stock jumped to close today at $38.75. Raising $812 million split $700 million to DreamWorks Animation and $112 million to existing shareholders who threw 4 million shares into the pot (see Variety and Mercury News).
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A vote of confidence for DWA and CGI animation in general, timing the IPO to coincide with the (expected) sucess of "Shark Tale" at the box office seems to have paid off. Offering proceeds will be used to pay down debt arising from the separation from parent company DreamWorks SKG and for future production costs.
DWA will have a chance to prove its model out with two features next year ("Madagascar" and "Over the Hedge") and "Shrek 3" in 2006.
DreamWorks Ani's success could drive to swifter conclusion any hint of a destination for free floating Pixar.
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