DreamWorks Animation’s AWESOME Math! 3X Hearst Heist in 1.5 Years

You do the math.

DreamWorks Animation kick started the current MCN shopping spree 1.5 years ago by buying kid-focused MCN AwesomenessTV for $33 million -- with additional performance “kickers” that could nearly quadruple that number to $117 million.  And, my sources tell me that those “kickers” ultimately did kick in -- so let’s assume the deal ultimately cost DreamWorks something close to that number.  Let’s call it $110 million to make the math easy.

Now, Hearst buys 25% of AwesomenessTV for $81.25 million, thereby valuing the company at a cool $325 million.

Take out your pencils ... crunch those numbers (hmmm, $110M >>>$325M) ... that’s nearly a 3X return in 1.5 years.

Not bad DreamWorks, not bad!  (Here are my thoughts about the deal in Variety’s own analysis.)

Now DreamWorks Animation has both (i) a boatload of new cash it can use to further accelerate its growth and diversify its business, and (ii) a new media partner with massive distribution to fuel that fire further (including stakes in major cable channels like ESPN and Lifetime).

Well played, DreamWorks, well played.  AWESOMEly played ....

And, here’s our little secret.  This deal is not just good for DreamWorks Animation.  It’s really good for all of the other leading MCNs out there as well -- and, you know who you are ....

Just another example of traditional media companies jumping into the MCN pool in order to play effectively with mobile-focused millennials -- and the short-form premium video content they voraciously consume (or is it the other way around?).