Flops Costs DreamWorks Animation $57 Million 'Impairment Charge'
The Hollywood Reporter writes that due to "Mr. Peadbody & Sherman" flopping, DreamWorks Animation took a $57 million "impairment charge" on the film and lost a total of $42.9 million in the first fiscal quarter. The animated children's film cost $145 million to produce but only made $261 million worldwide since its release.
DreamWorks Animation CEO Jeffrey Katzenberg sought to assure shareholders that he understands the problem with his company and is aggressively working to solve it:
The box office shortfall of Mr. Peabody & Sherman is evidence of the current challenges we face within our feature film segment, and restoring the strength in our core business is my No. 1 priority today.
That apparently means that Katzenberg will use his studio's creative assets to either make better movies or come up with a better euphemism than "impairment charge" to describe "the beating we took on this big stinkin' flop."
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