Reaction to the Jan. 22 reveal that DreamWorks Animation would undergo a massive restructuring — including a smaller film slate, 500 layoffs, $290 million in pretax charges and the departure of its vice chairman, chief marketing officer and COO — was practically apocalyptic, with one analyst wondering whether CEO Jeffrey Katzenberg’s company has enough cash to survive another four years.
“DreamWorks is in a dire situation,” wrote BTIG analyst Rich Greenfield. “It is hard to have confidence in DWA’s liquidity situation beyond 2018.” Greenfield warned that when distribution deals with Fox and Netflix end in 2017 and 2018, respectively, new arrangements will not be as lucrative for DWA, and the $50 million in cash the studio has on hand is not enough to keep it afloat, given it’s expected to spend $110 million on restructuring alone in 2015.
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