Atlanta Bank Buys DreamWorks Animation Campus
Financially challenged DreamWorks Animation agreed to sell its 14.7 acre Glendale campus to a subsidiary of SunTrust Equity Funding for $185 million — a deal meant to raise quick cash for the studio as it attempts to regain its footing, a regulatory filing revealed Thursday.
The transaction calls for the sprawling headquarters of 10 buildings, fountains and manicured grounds to be sold to the Atlanta-based finance firm, but for the studio and its employees to remain in place through a leaseback arrangement. The initial term of the lease is 20 years, with rent starting at $13.2 million and increasing 1.5% a year.
Company insiders depicted the sale-leaseback as a convenient financing mechanism and denied it signifies DreamWorks Animation is in dire financial straits.
This week, DreamWorks Animation announced a big fourth-quarter loss of $247.7 million due to the company’s recent restructuring plans, which saw more than 500 employees laid off, along with the closure of its Northern California studio and a rethinking of its film release strategy.
Although the sale of the Glendale property had been revealed earlier in the week, the exact terms only became clear with Thursday’s filing with the Securities and Exchange Commission.
DreamWorks Animation stock (DWA) closed down 2.61% at $21.80.
Related stories
DreamWorks Animation Posts $247.7 Million Loss After 'Penguins' Flop, Company Restructuring
YouTube Kids' App Set to Debut in Bid to Provide 'Family Friendly' Destination
'Dragon 2′ Reaps Benefits of DreamWorks Animation's Techie Innovation
Get more from Variety and Variety411: Follow us on Twitter, Facebook, Newsletter