DreamWorks’ Stocks Drop Due to Release Shuffle
This week saw the announcement of DreamWorks Animation’s decision to push back the release date for Mr. Peabody and Sherman, and there’s also news of an impending staff layoffs (the studio may cut up to 500 employees as a result of The Rise of the Guardians’ disappointing performance), both of which seems to have taken its toll on the studio’s stocks. According to a Variety report, DreamWorks Animation’s stock closed down 67¢, or 3.8%, to $16.75 in trading on the New York Stock Exchange on Wednesday. The company is scheduled to report fourth-quarter earnings on Feb. 26.
What this entails is an increased pressure on DreamWorks’ upcoming 2013 releases, The Croods and Turbo, which are slated for release by Fox on March 22nd and July 29th, respectively.
“We believe the best strategy for DreamWorks Animation in the long run is to ensure that every one of our films has an optimal release date with the biggest opportunity to succeed at the box office,” said studio CEO Jeffrey Katzenberg. “The move of Mr. Peabody & Sherman means that we will now release two films in 2013, and we are adjusting our operating infrastructure costs accordingly.”