NEW YORK, April 6, 2016 /PRNewswire/ -- Verizon today
announced it has entered into an agreement to purchase an
approximate 24.5% stake in AwesomenessTV (the "Company"). Upon
completion of this transaction, the AwesomenessTV multi-platform
media company will be valued at approximately $650 million. DreamWorks Animation (Nasdaq: DWA),
which acquired AwesomenessTV in 2013, will remain the Company's
majority stakeholder with an approximate 51% ownership of
outstanding shares, while Hearst will own the remaining 24.5%.
Brian Robbins, AwesomenessTV founder
and CEO, and Brett Bouttier,
AwesomenessTV's president, will continue to lead the Company.
In addition to its equity investment, Verizon will enter into an
agreement with AwesomenessTV to create a first-of-its-kind premium
short-form mobile video service featuring leading talent in front
of and behind the camera. The new service will operate as a new and
independent brand, and feature premium transactional content for a
variety of audiences on par with the highest-end content seen on
television today. The new service will launch as part of the
go90 offering and Verizon will fund the initiative through a
multi-year agreement with AwesomenessTV.
"In addition to delivering compelling scripted and non-scripted
series with high production values, AwesomenessTV has demonstrated
an ability to zero in on programming that Gen Z and millennials
want to watch," said Marni Walden,
executive vice president and president of Product & New
Business Innovation, Verizon. "The content AwesomenessTV has
produced for go90 has exceeded all our expectations with shows such
as Guidance and Top Five Live. That's why we want to
be in the AwesomenessTV business."
The new premium content service will initially be exclusive to
Verizon platforms in the United
States, while AwesomenessTV will retain the right to sell
content in the rest of the world. In addition to the production
resources, expertise and marketing know-how of the team at
AwesomenessTV, the partners will draw upon the entire Hollywood community – studios, production
companies, writers, directors and actors – for content
creation.
"This deal gives us the resources to work with the biggest
talent in front of and behind the camera to create this new branded
service and produce the most premium short-form content ever, made
specifically for the device racking up the fastest growing
viewership – the mobile phone," said AwesomenessTV's Brian Robbins. "With Verizon joining DreamWorks
Animation and Hearst as part of our equity ownership group, we
benefit from the strategic insight and resources of the
entertainment and communications industries' most visionary
companies and leaders. Our goal is to be the media company of the
future, where content and distribution go hand in hand – we are now
one giant step closer to that future."
"The creation of this new branded service represents a
transformational step, not just for AwesomenessTV, but also for the
entire mobile video landscape," said Jeffrey Katzenberg, CEO of DreamWorks
Animation. "This agreement is clearly impactful for
AwesomenessTV – with annual revenues expected to more than double
in the first 12 months of content delivery – and even more exciting
is the expansion of our relationship with Verizon, one of the
world's most powerful marketers and content distributors, and their
commitment to explore with us this incredible opportunity."
LionTree Advisors LLC acted as advisor to Verizon during this
transaction and J.P. Morgan Securities LLC advised DreamWorks
Animation. The transaction is subject to customary closing
conditions. The parties currently expect that the transaction will
be completed within the next 60 days.
About AwesomenessTV
AwesomenessTV is a
multi-platform media company owned by DreamWorks Animation (Nasdaq:
DWA) and Hearst, the latter of which has a 25% interest. Included
under the AwesomenessTV banner are AwesomenessTV, a
leading destination for original programming serving the global Gen
Z audience; the ATV Network, a global creator
community; Big Frame, an influencer talent management
company; DreamWorksTV; Awestruck; Awesomeness
Films; Wildness; as well as consumer products, music and
branded entertainment divisions. AwesomenessTV was founded by
Brian Robbins (Smallville, Varsity
Blues, All That) and Joe Davola (In
Living Color, Smallville, MTV Networks). Check
out www.awesomenesstv.com.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) employs a
diverse workforce of 177,700 and generated nearly $132 billion in 2015 revenues. Verizon operates
America's most reliable wireless network, with more than 112
million retail connections nationwide. Headquartered in
New York, the company also
provides communications and entertainment services over America's
most advanced fiber-optic network, and delivers integrated business
solutions to customers worldwide.
About DreamWorks Animation
DreamWorks Animation
(Nasdaq: DWA) creates high-quality entertainment, including CG
animated feature films, television specials and series and live
entertainment properties, meant for audiences around the world. The
company has world-class creative talent, a strong and experienced
management team and advanced filmmaking technology and techniques.
All of DreamWorks Animation's feature films are produced in 3D. The
company has theatrically released a total of 32 animated feature
films, including the franchise properties of Shrek, Madagascar, Kung Fu
Panda, How to Train Your Dragon, Puss In Boots and The
Croods.
About Hearst
Hearst is one of the nation's largest
diversified media, information and services companies with more
than 360 businesses. Its major interests include ownership in cable
television networks such as A&E, HISTORY, Lifetime and ESPN;
majority ownership of global ratings agency Fitch Group; Hearst
Health, a group of medical information and services businesses; 30
television stations such as WCVB-TV in Boston and KCRA-TV in Sacramento, Calif., which reach a combined 19
percent of U.S. viewers; newspapers such as the Houston
Chronicle, San Francisco Chronicle and
Albany Times Union, more than 300 magazines around the world
including Cosmopolitan, ELLE, Harper's
BAZAAR and Car and Driver; digital services
businesses such as iCrossing and KUBRA; and investments in emerging
digital and video companies such as BuzzFeed, VICE and
AwesomenessTV. Follow us on Twitter @HearstCorp and subscribe
to Hearstlink.
DreamWorks Animation Caution Concerning Forward-Looking
Statements
This document includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. The Company's plans, prospects, strategies, proposals and
DreamWorks Animation's beliefs and expectations concerning
performance of its current and future releases and anticipated
talent, directors and storyline for its upcoming films and other
projects, constitute forward-looking statements. These statements
are based on current expectations, estimates, forecasts and
projections about the industry in which DreamWorks Animation
operates and management's beliefs and assumptions. These statements
are not guarantees of future performance and involve risks,
uncertainties and assumptions which are difficult to predict.
Actual results may vary materially from those expressed or implied
by the statements herein due to changes in economic, business,
competitive, technological and/or regulatory factors, and other
risks and uncertainties affecting the operation of the business
of DreamWorks Animation SKG, Inc. These risks and
uncertainties include: audience acceptance of DreamWorks
Animation's films, our dependence on the success of a limited
number of releases each year, the increasing cost of producing and
marketing feature films, piracy of motion pictures, the effect of
rapid technological change or alternative forms of entertainment
and our need to protect our proprietary technology and enhance or
develop new technology. In addition, due to the uncertainties and
risks involved in the development and production of animated
feature projects, the release dates for the projects described in
this document may be delayed. For a further list and description of
such risks and uncertainties, see the reports filed by us with
the Securities and Exchange Commission, including our most
recent annual report on Form 10-K and our most recent quarterly
reports on Form 10-Q. DreamWorks Animation is under no obligation
to, and expressly disclaims any obligation to, update or alter its
forward-looking statements, whether as a result of new information,
future events, changes in assumptions or otherwise.
Media contacts:
Deidre
Hart
Verizon
908.559.3483
deidre.m.hart@verizon.com
Dan
Berger
DreamWorks
Animation
818.695.4747
dan.berger@dreamworks.com
Rachel McCallister
For AwesomenessTV
323.933.3399 ext.
4209
rmccallister@mprm.com
Paul
Luthringer
Hearst
212.649.2540
paul@hearst.com
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SOURCE Verizon
