Company Update: Netflix, Inc. (NFLX)and Dreamworks (DWA) Animation Skg Inc Animation Expand Global Relationship

Netflix, Inc. (NASDAQ:NFLX) and Dreamworks Animation Skg Inc (NASDAQ:DWA) announced the expansion of their current multi-year deal, making Netflix the global home, outside of China, to a number of new original series for the whole family from the studio. The deal also covers streaming rights to the DreamWorks Animation feature film library.

In addition, the deal extends the rights of current original series for kids from the studio available on the service throughout operating Netflix markets as well as expanding to include second window rights for the series everywhere around the world, outside of China. Series include The Adventures of Puss in Boots, Dinotrux, Dragons: Race to the Edge, among others.

Starting in 2016, Netflix will launch several new series from DWA, including a reimagining of Voltron, and the new series, Trollhunters, from master storyteller Guillermo del Toro, who will unleash a new, fantastical world wrapped around two best friends who make a startling discovery beneath their hometown.

Over the term of the new agreement, a number of new original series will be developed and produced by DreamWorks Animation for Netflix, based not only on recent and upcoming feature films from the studio, but also on other classic IP.

“DreamWorks Animation is synonymous with great storytelling that families around the world enjoy,” said Cindy Holland, Vice President of Original Series for Netflix. “It’s with great pleasure that we expand on an already successful relationship with DreamWorks Animation to bring more premium kids and family television to Netflix members globally.”

“This agreement adds to the incredible foundation we’ve built together with Netflix over a number of years across both film and television,” said Ann Daly, President of DreamWorks Animation. “We are proud to work closely with Netflix to continue delivering high-quality programming to audiences around the world.” (Original Source)

Shares of Dreamworks Animation closed yesterday at $23.99, down $1.78 or -6.91%. DWA has a 1-year high of $29.75 and a 1-year low of $17.02. The stock’s 50-day moving average is $25.02 and its 200-day moving average is $22.61.

On the ratings front, Dreamworks has been the subject of a number of recent research reports. In a report issued on December 21, Credit Suisse analyst Robert Peters upgraded DWA to Buy. Separately, on December 9, Macquarie’s Amy Yong maintained a Buy rating on the stock and has a price target of $30.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Robert Peters and Amy Yong have a total average return of 0.6% and 7.4% respectively. Peters has a success rate of 33.3% and is ranked #2289 out of 3648 analysts, while Yong has a success rate of 58.6% and is ranked #814.

The street is mostly Bullish on DWA stock. Out of 6 analysts who cover the stock, 4 suggest a Buy rating , one suggests a Sell and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $26.67, which implies an upside of 11.2% from current levels.

Dreamworks Animation SKG Inc creates and exploits family entertainment, including animated feature films, television series and specials, live entertainment properties and related consumer products.

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