Japanese publisher Kadokawa Holdings will acquire a 2.83% stake in DreamWorks SKG for $100 million.
LOS ANGELES (Hollywood Reporter)--Japanese publisher Kadokawa Holdings will acquire a 2.83% stake in DreamWorks SKG for $100 million.
Under the deal, Kadokawa will obtain exclusive rights to sell DreamWorks films, videos and DVDs and other products in Japan.
According to a statement, Tokyo-based Kadokawa expects sales of about $32 million from selling DreamWorks content in the year starting April 1. DreamWorks previously didn't have a Japanese partner.
DreamWorks was launched in 1994 by partners Steven Spielberg, Jeffrey Katzenberg and David Geffen. Each has a reported 22% stake in the studio, with Paul Allen, the company's main investor, owning 26%. The Korean corporation Cheil Jedang also maintains an investment in the studio.
The studio previously relied on its film, television, record and animation division for profits. However, DreamWorks sold its music division to Universal Music last year, and earlier it moved its TV operations to NBC.
On the film side, the studio is suffering through a dry spell. Last year, DreamWorks distributed only seven new wide releases, the best performer being "Old School," with a $75 million take. Its only two 2004 releases--"Win a Date With Tad Hamilton!" and "Eurotrip" -- turned in disappointing runs.
And while the studio is poised for a rebound during the next eight months with such upcoming films as "Shrek 2" and Spielberg's "The Terminal" as well as co-productions "Collateral" and "Lemony Snicket's A Series of Unfortunate Events," its 2005 slate is so far only composed of two animated titles: "Madagascar" and "The Wallace & Gromit Movie."