DreamWorks Animation – What’s The Point?

Andrew Chang, Anil Ambani, Ann Daly, Anne Globe, Ari Emanuel, Ben Silverman, Clark Hallren, Craig Ring, Dan Satterthwaite, David Geffen, Dreamworks Animation, Harry Brittenham, Heather O'Conner, Holly Bario, Jeff Small, Jeff Weiner, Jeff Zucker, Jeffrey Katzenberg, Jill Kennedy, John Batter, Judson Green, Khan Manka, Lew Coleman, Manka Bros., Mark Sourian, Melody Hobson, Michael Eisner, Michael J. Montgomery, Nathan Myhrvold, OnMedea, Paul Allen, Reliance ADA Group, Rich Sullivan, Richard Sherman, Roger Enrico, Stacey Snider, Steven Spielberg, Strauss Zelnick, Thomas Freston, Walt DisneyI certainly hope Jeffrey Katzenberg is actively trying to sell the company.  I mean, for a guy like him, I just don’t get why he does it.

For most people, it would be a great gig:  Produce two high quality (some at Pixar would say average quality) animated movies a year for ever and ever and ever.  But Jeffrey Katzenberg isn’t ‘most people’.  He’s a guy that wanted to build an empire and has apparently stopped trying to do that.  I can’t imagine he’s suddenly content with what he has.

When DreamWorks was formed in 1994, I was all for it.  To build a media empire from scratch is the kind of ambition that Hollywood hadn’t seen in decades (and probably won’t be seen again).  But if anyone could do it, it would be Spielberg, Katzenberg and Geffen SKG.  But they couldn’t stomach the hard times.

They didn’t have the guts of a Khan Manka or a Walt Disney who were willing to mortgage everything to keep their dreams afloat.  SKG used mostly other people’s money – not their houses or art collections – and the other people started getting nervous.  SKG decided to remain rich and refined the art of risk management.

And I’m sure they’ve all had very happy lives even without a media empire.

But I think it’s time for DreamWorks to finally exit the stage.  It’s going to happen sooner or later.  Just do it now.  Why go through the aggravation of further stockholder meetings and quarterly reports to Wall Street.

Andrew Chang, Anil Ambani, Ann Daly, Anne Globe, Ari Emanuel, Ben Silverman, Clark Hallren, Craig Ring, Dan Satterthwaite, David Geffen, Dreamworks Animation, Harry Brittenham, Heather O'Conner, Holly Bario, Jeff Small, Jeff Weiner, Jeff Zucker, Jeffrey Katzenberg, Jill Kennedy, John Batter, Judson Green, Khan Manka, Lew Coleman, Manka Bros., Mark Sourian, Melody Hobson, Michael Eisner, Michael J. Montgomery, Nathan Myhrvold, OnMedea, Paul Allen, Reliance ADA Group, Rich Sullivan, Richard Sherman, Roger Enrico, Stacey Snider, Steven Spielberg, Strauss Zelnick, Thomas Freston, Walt DisneyRight, Mr. Katzenberg?

Just sell (probably for a few billion), if you can, at a decent return to shareholders, set up an office on one of the studio lots and reminisce about the old days and how things might have turned out different if you’d been a little crazier.

Nearly all the movies DreamWorks Animation has produced and will produce have been and will most likely be solid hits worldwide that any film studio would love to add to their library/event film slate.  It’s a pretty simple formula – write average script, hire stars as voices, animate, market, distribute and make about $500 million worldwide (with only the occasional disappointment of something like “Flushed Away”).  Repeat.  Repeat.  Repeat.  Repeat.  Repeat.

A big studio purchase of DWA fits perfectly into Hollywood’s current mindset of accurately predicting financial results and avoiding any kind of risk.

Lucky are we to get to pay for and sit through the movies that reflect this strategy.

Andrew Chang, Anil Ambani, Ann Daly, Anne Globe, Ari Emanuel, Ben Silverman, Clark Hallren, Craig Ring, Dan Satterthwaite, David Geffen, Dreamworks Animation, Harry Brittenham, Heather O'Conner, Holly Bario, Jeff Small, Jeff Weiner, Jeff Zucker, Jeffrey Katzenberg, Jill Kennedy, John Batter, Judson Green, Khan Manka, Lew Coleman, Manka Bros., Mark Sourian, Melody Hobson, Michael Eisner, Michael J. Montgomery, Nathan Myhrvold, OnMedea, Paul Allen, Reliance ADA Group, Rich Sullivan, Richard Sherman, Roger Enrico, Stacey Snider, Steven Spielberg, Strauss Zelnick, Thomas Freston, Walt DisneyJill Kennedy – OnMedea

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CBS Films – R.I.P. – Beastly Update

Adam Townsend, Alan Ruck, Amy Baer, Angeline Straka, Anthony Ambrosio, Ari Emanuel, Arnold Kopelson, Brendan Fraser, Bruce S. Gordon, Bruce Tobey, Carl Folta, Carla Santos Shamberg, CBS Films, Charlie Gifford, Chase Carey, David Andelman, David Poltrack, Debbie Miller, DebManka Bros., Diego Velazquez, Doug Morris, Fred Salerno, Gary Countryman, Geeta Anand, Gil Schwartz, Harrison Ford, Harvey Weinstein, Jared Harris, Jeff Weiner, Jill Kennedy, Jordana Glick-Franzheim, Joseph A. Califano, Joseph Ianniello, Josh Rothstein, Jr., Keri Russell, Khan Manka, Leonard Goldberg, Les Moonves, Linda Griego, Louis Briskman, Manka Bros., Martin Franks, Meredith Droeger, Michael Shamberg, Nan Morales, News Corporation, OnMedea, Patrick Bauchau, Phillippe Dauman, Reid Sullivan, Richard Jones, Rik Toulon, Rob Friedman, Robert Nelson Jacobs, Rupert Murdoch, Sam Hall, Shari Redstone, Stacey Sher, Steven Friedlander, Summit Entertainment, Sumner Redstone, Terry Semel, The Weinstein Company, Thomas Dooley, Tom Vaughan, Viacom, Wade Davis, William S. Cohen, CBS Films is deadUPDATE: The original CBS Films R.I.P. post below was written on January 25, 2010, right after “Extraordinary Measures” starring Harrison Ford and Brendan Fraser flopped.

The latest CBS Films release to flop is “Beastly” starring actors who didn’t get cast in “Twilight”.  This modern take on “Beauty and the Beast” (one of an endless stream of upcoming Fairy Tale Movies) had an opening weekend of about $10 million.  While this one is not a complete disaster like the previous releases, and may only lose a couple of million, it won’t, by any means, be able to save the life of the division.

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CBS Films – R.I.P. (January 25, 2010)

I’m actually surprised there isn’t more inside media coverage of the disastrous debut of CBS Films’ first release – “Extraordinary Measures” starring Harrison Ford and Brendan Fraser ($6.0 million opening weekend from over 2,500 theaters – finishing 8th behind “Alvin and the Chipmunks: The Squeakquel” in its 5th week).

I realize the Jay/Dave/Conan/Jeff Zucker drama is a much sexier story but CBS Films’ failure is another example of the cocksure executive that believes he can do no wrong.

Adam Townsend, Alan Ruck, Amy Baer, Angeline Straka, Anthony Ambrosio, Ari Emanuel, Arnold Kopelson, Brendan Fraser, Bruce S. Gordon, Bruce Tobey, Carl Folta, Carla Santos Shamberg, CBS Films, Charlie Gifford, Chase Carey, David Andelman, David Poltrack, Debbie Miller, DebManka Bros., Diego Velazquez, Doug Morris, Fred Salerno, Gary Countryman, Geeta Anand, Gil Schwartz, Harrison Ford, Harvey Weinstein, Jared Harris, Jeff Weiner, Jill Kennedy, Jordana Glick-Franzheim, Joseph A. Califano, Joseph Ianniello, Josh Rothstein, Jr., Keri Russell, Khan Manka, Leonard Goldberg, Les Moonves, Linda Griego, Louis Briskman, Manka Bros., Martin Franks, Meredith Droeger, Michael Shamberg, Nan Morales, News Corporation, OnMedea, Patrick Bauchau, Phillippe Dauman, Reid Sullivan, Richard Jones, Rik Toulon, Rob Friedman, Robert Nelson Jacobs, Rupert Murdoch, Sam Hall, Shari Redstone, Stacey Sher, Steven Friedlander, Summit Entertainment, Sumner Redstone, Terry Semel, The Weinstein Company, Thomas Dooley, Tom Vaughan, Viacom, Wade Davis, William S. CohenLes Moonves, former bit player on “The Six Million Dollar Man” turned powerful CBS media mogul, is the exec on the hot seat this time. (Personally, I can imagine Jeff Zucker pushing this story just to get his name out of the press.)

Four years ago, when Sumner Redstone was completing the disastrous Viacom / CBS split, Mr. Moonves wanted Paramount Pictures so badly that when he didn’t get it, he decided he could create a new Paramount Pictures from scratch – CBS Films.

It’s a cold Monday morning at Black Rock today.

I’m assuming there will be two maybe three more failed releases in 2010 and then a decision to “refocus CBS’ energies on our booming cable network distribution platforms and new media” (translation: the coming end of CBS Films – probably at the end of 2011).

The R.I.P. tombstone above is generous in giving CBS Films a four year lifespan (2007-2011) considering the first release wasn’t until this past weekend – but I think three years of staffing up and development does count at being in business.

Another possibility for CBS would be to acquire Summit Entertainment. At least then they would have two guaranteed hits in the pipeline – the final two “Twilight” movies.

Or… my personal dream plan, somehow have CBS either acquire or wrest away Paramount from Viacom. News Corporation then buys Viacom’s cable channels (assets they sorely need). And Viacom shuts down thus getting us one step closer to saying bye-bye to Sumner Redstone forever.

Regardless of what happens, CBS’ old media experiment is not going to make it.

Adam Townsend, Alan Ruck, Amy Baer, Angeline Straka, Anthony Ambrosio, Ari Emanuel, Arnold Kopelson, Brendan Fraser, Bruce S. Gordon, Bruce Tobey, Carl Folta, Carla Santos Shamberg, CBS Films, Charlie Gifford, Chase Carey, David Andelman, David Poltrack, Debbie Miller, DebManka Bros., Diego Velazquez, Doug Morris, Fred Salerno, Gary Countryman, Geeta Anand, Gil Schwartz, Harrison Ford, Harvey Weinstein, Jared Harris, Jeff Weiner, Jill Kennedy, Jordana Glick-Franzheim, Joseph A. Califano, Joseph Ianniello, Josh Rothstein, Jr., Keri Russell, Khan Manka, Leonard Goldberg, Les Moonves, Linda Griego, Louis Briskman, Manka Bros., Martin Franks, Meredith Droeger, Michael Shamberg, Nan Morales, News Corporation, OnMedea, Patrick Bauchau, Phillippe Dauman, Reid Sullivan, Richard Jones, Rik Toulon, Rob Friedman, Robert Nelson Jacobs, Rupert Murdoch, Sam Hall, Shari Redstone, Stacey Sher, Steven Friedlander, Summit Entertainment, Sumner Redstone, Terry Semel, The Weinstein Company, Thomas Dooley, Tom Vaughan, Viacom, Wade Davis, William S. CohenJill Kennedy – OnMedea