UPDATE: SEC Investigating DreamWorks Animation Writedown On ‘Turbo’; Shares Fall After Q2 Earnings Miss

UPDATE: DreamWorks Animation just disclosed the SEC investigation in its conference call with analysts and says it’s cooperating. The company took a $13.5M writedown on Turbo in February. DWA told analysts that it won’t comment further on the matter. Shares were down 8.2% after the news; if that holds tomorrow then it would be a 52-week low.

turbo_posterSeparately, CEO Jeffrey Katzenberg declined to comment on the potential impact on his company if its distributor, Fox, acquires Time Warner. “Honestly, it’s way above my pay grade,” he says.

DWA said that it has bought from Paramount distribution rights to its feature films prior to 2013. They’ll now all be handled by Fox.

Katzenberg calls 2014 an investment year for DWA as it builds consumer products, TV programming, digital, and location-based entertainment. He adds that, generally speaking, the film “marketplace has gotten tougher. We’re competing against more movies than we have in the past.” Still, he says DWA is examining the lower-than-expected sales for Dragon 2. (more…)

This article was printed from https://deadline.com/2014/07/dreamworks-animation-q2-earnings-2-811725/