DWA Dreamworks Animation Skg, Inc. (MM)

1925 EDT [Dow Jones] -- A shareholder in DreamWorks Animation SKG Inc. is suing the animation company's CEO, saying he had a conflict of interest in negotiating the studio's recent sale to Comcast Corp. The suit, filed by the Ann Arbor City Employees Retirement System, concerns Jeffrey Katzenberg's negotiated role in the tie-up. As part of the $3.8 billion acquisition, Mr. Katzenberg agreed to run DreamWorks New Media, a division of the studio's online video and technology holdings. He will receive 7% of that division's profits in perpetuity. The Ann Arbor organization alleges that DreamWorks shareholders might have found a better offer if a buyer hadn't felt compelled to sweeten the terms for Mr. Katzenberg, who as a majority shareholder had veto power over acquisition approvals. Generally speaking, Wall Street thought the $3.8 billion price tag was generous for a company of DreamWorks' size and output. A DreamWorks spokesman declined to comment. (erich.schwartzel@wsj.com; @erichschwartzel)

(END) Dow Jones Newswires

June 28, 2016 19:49 ET (23:49 GMT)

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