MUMBAI: DreamWorks Animation SKG has confirmed that it has entered into an agreement to acquire Classic Media for $155 million in a cash deal with its owners Boomerang Media Holdings.

Classic Media?s library of intellectual property, which is focused on family characters and brands, features a vast collection of filmed entertainment with over 450 titles and more than 6,100 episodes of animated and live-action programming.

It had an operating profit of $19.2 million on $82.2 million in revenue in the year ending 29 February.

The company owns one of the world?s largest comic book archives and media rights to the titles in the Golden Books library, which have sold over two billion copies worldwide. Their properties have been distributed in over 170 territories around the globe.

It?s titles includes Casper the Friendly Ghost, Where?s Waldo?, Lassie, The Lone Ranger, George of the Jungle and Rocky & Bullwinkle, Classic Media?s properties have been a fixture in mainstream entertainment for decades. The Christmas Classics; Frosty the Snowman, Rudolph the Red-Nosed Reindeer and Santa Claus is Comin? to Town are the longest-running, highest-rated holiday specials in television history.

Classic Media counts among its holdings contemporary bestsellers such as VeggieTales and the beloved Olivia property, as well as hits Postman Pat and Noddy in international markets.

"Classic Media brings a large and diverse collection of characters and branded assets that is extremely complementary to DreamWorks Animation?s franchise business, and we plan to leverage it across our motion picture, television, home entertainment, consumer products, digital, theme park and live entertainment channels," said DreamWorks Animation CEO Jeffrey Katzenberg.

Classic Media has approximately 80 employees and is headquartered in New York City, with offices in the UK and a division, Big Idea Entertainment, in Nashville, TN.

"No company knows the family entertainment business better than DreamWorks Animation and we are excited to join their family in a natural extension of our long-standing relationship that began years ago on Mr. Peabody & Sherman," said Classic Media co-CEO Eric Ellenbogen.

"Classic Media brings to the table extensive rights to some of the most beloved family entertainment brands in the world. Our combination with DreamWorks Animation will expand the opportunities for us and for our content and distribution partners around the globe."

Classic Media?s joint venture with Jay Ward Productions manages the rights to the entire Jay Ward animated catalog, which includes Rocky & Bullwinkle and Mr. Peabody & Sherman. DreamWorks Animation?s 3D feature film Mr. Peabody & Sherman is scheduled for release on 25 December 2013.

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MUMBAI: DreamWorks Animation has emerged as the lead contender to acquire American animation company Classic Media.

Classic owns and manages a globally-recognised portfolio of well-known family and pop culture entertainment brands, including Casper the Friendly Ghost, Where?s Waldo?, Lassie, The Lone Ranger, Postman Pat and George of the Jungle.

According reports, DreamWorks Animation has outbid others in the fray by offering over $150 million. The high valuation is believed to have prompted other propsective buyers from dropping off the sales process.

The Classic Media acquisition, if it goes through, will give DreamWorks Animation the much needed source material to produce movies.

However, the acquisition might not solve all its problems since Classic Media does not control all the rights for its properties that it has in its portfolio.

Walt Disney Studios, for instance, is producing a $225 million remake of ?The Lone Ranger". However, the licensing and merchandise rights arrangement between Disney and Classic for the film is not clear.