Thanks again to AliasD for this story.

The Bottom Line of Animation

With growing competition from media giants, low-performing DreamWorks may have to consider selling itself.

By Lorenza Muñoz, Times Staff Writer
May 2, 2006

Just like the animals in its upcoming release "Over the Hedge," who venture into an unknown and often unforgiving world, DreamWorks Animation SKG Inc. executives have been navigating some lonely, uncharted territory of late.

DreamWorks plans to announce its first-quarter earnings today, and analysts are downplaying expectations. No significant revenue is expected until later this year and the company's stock is hovering about a dollar below its initial offering price of $28 a share, raising questions about the future of the studio that made the ogre Shrek a household name.

Computer animation may be booming, but as Walt Disney Co. prepares to fortify its position in the family entertainment marketplace by buying Pixar Animation Studios, DreamWorks will soon find itself the last remaining public animation outfit in Hollywood.

Unless, of course, someone buys it, too.