Dreamworks (DWA) files secondary offering; details from the S-1

Dreamworks Animation SKG (ticker: DWA) filed an S-1 form in preparation for a $575 million secondary offering.

Offering size (# of shares):

• Class A: 88,010,188 shares
• Class B:   18,842, 881 shares
• Class C: 1 share
• Total shares: 106,853,070 shares
• Expected proceeds: $575 million
• Shareholders are entitled to 1 vote per Class A and C shares and 15 votes per Class B share

Selling shareholders (# of shares):

• Paul Allen: 9,871,844 shares
• Lee Entertainment LLC: 1,569,798 shares
• Universal Studios: 1,258,383 shares

Lock-up period:

• Most executives and directors are locked-up until 4/26/05
• Speilberg, Katzenstein and Geffen are locked-up until 10/27/05

Stock performance:

• DWA went public on 10/28/04 at $28 per share, ending its first day at $39.54 (+41%)
• On Friday, 3/24/05, DWA closed at $39.54, about 2% above its first day's close

Deal managers:

• DWA's IPO was managed by Goldman Sachs and J.P. Morgan
• Other managers were: Banc of America Securities, Bear Stearns, Merrill Lynch, HSBC and SG Cowen
• No bankers are listed on DWA's filing

Largest shareholders:

• Jeffrey Katzenberg: 8,053,275

  (B shares)

• David Geffen:        8,053,275 (B shares)
• Steven Spielberg
      8,053,275     (A shares)
• Paul Allen:
      34,579,236 (A shares)
• Lee Entertainment L.L.C.: 5,666,575     (A shares)
• Vivendi Universal Entertainment LLLP:
      2,678,571     (A shares)
• Thomson Inc.
     : 1,785,714     (A shares)
• Kadokawa Entertainment U.S. Inc.:
      2,021,220     (A shares)
• Chemical Investments, Inc.: 1,310,934     (A shares)
• Microsoft Corporation
     : 1,310,934     (A shares)
• Ziff Investors Partnership, L.P. IIA:
      1,310,934 (A shares)

DWA hit films (box office revenues):

• Shrek 2: $437 million
• Shrek: $268 million
• Shark Tale: $160 million
• Antz: $91 million

Shrek references:

• Shrek: 30 times
• Shrek 2: 49 times
• Shrek 3: 5 times
• Shrek franchise: 1 time

Shrek 2 facts:

• 3rd highest grossing film of all time in the domestic box office
• Highest grossing animated film of all time
• Most successful three-day opening weekend of any animated film
• Most successful single-day box office sales record for any film ($44.8M)
• Most widely distributed domestic film ever (4,223 theaters at its peak)
• Best selling video title in 2004

Upcoming releases (expected opening):

• Madagascar (5/27/05)
• Wallace & Gromit (10/7/05)
• Over the Hedge (5/19/06)
• Flushed Away (Fall 2006)
• Shrek 3 (May 2007)
• Bees (Fall 2007)