NBCUniversal, a division of Comcast, has announced a $3.8bn (£2.6bn) deal to acquire Dreamworks Animation.
Shareholders of Dreamworks Animation, the maker of Shrek and Kung Fu Panda, will receive $41 in cash for each share under the deal.
On Thursday morning in the US, after the announcement, the share price of Dreamworks was up 24 per cent to $40. It had risen around 19 per cent to $32.20 when news of the deal emerged on Wednesday.
"DreamWorks Animation is a great addition to NBCUniversal," said Steve Burke, chief executive of NBCUniversal.
"Jeffrey Katzenberg and the organization have created a dynamic film brand and a deep library of intellectual property.
"Dreamworks will help us grow our film, television, theme parks and consumer products businesses for years to come.”
Under the deal, Dreamworks Animation will become part of Universal Filmed Entertainment Group, which includes Universal Pictures, Fandango, and NBCUniversal Brand Development.
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NBCUniversal said the agreement has been approved by the boards of Dreamworks and Comcast and the controlling shareholder of Dreamworks. The deal is expected to close by the end of this year.
In December last year, NBCUniversal was linked with a bid for ITV.
But Comcast later ruled out a move, saying: "We don’t comment on M&A rumours, but the speculation on ITV is just completely inaccurate."
Comcast yesterday reported better-than-expected results for the first quarter of 2016.
Earnings per share were $0.84, above analysts' projections of $0.79, according to Bloomberg.