Paul Allen, Others to Sell $500 Million in DreamWorks Stock

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DreamWorks Animation SKG Inc. said Monday that stockholders including Microsoft Corp. co-founder Paul Allen plan to sell $500 million of shares, five months after the company went public.


Allen, Lee Entertainment and Vivendi Universal Entertainment, a unit of General Electric Co., will sell stakes after the May 27 release of the film “Madagascar,” Glendale-based DreamWorks Animation said in a filing Monday with the Securities and Exchange Commission.


According to the SEC filing, Allen is selling 9.9 million shares, Lee Entertainment is selling 1.6 million shares and Universal Studios is selling 1.3 million shares. At a price of $39.26 each late Monday, Allen’s shares would be worth $388.7 million, Lee’s shares would be valued at $62.8 million and Universal’s would be worth nearly $51 million.


DreamWorks went public on Oct. 28 at $28 per share.


The company will not be issuing any new shares or receiving any of the proceeds. Steven Spielberg, David Geffen, and Jeffrey Katzenberg are not among the selling shareholders, the company said. The three DreamWorks SKG co-founders agreed to a 365-day lock-up agreement after the IPO. The pact expires on Oct. 27.