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By Erich Schwartzel and Ben Fritz 

DreamWorks Animation SKG Inc. Chief Executive Jeffrey Katzenberg is expected to leave if Comcast Corp. acquires the family-entertainment studio, according to people familiar with the matter.

Mr. Katzenberg has been CEO of DreamWorks since it spun off as its own company in 2004. The Wall Street Journal reported Tuesday evening that Comcast Corp. was in talks to buy DreamWorks for more than $3 billion, though the deal isn't final and negotiations could fall apart.

Mr. Katzenberg, 65 years old, has maintained a high profile in Hollywood for more than 30 years. It is unclear what he might do if he leaves DreamWorks.

Mr. Katzenberg would receive a total payout of about $21.9 million if the company is sold and he leaves DreamWorks, according to the company's most recent proxy statement. Additionally, he controls about 60% of the company's common voting stock, according to the proxy.

After a tumultuous career at Walt Disney Co., Mr. Katzenberg joined with director Steven Spielberg and music mogul David Geffen to launch DreamWorks SKG, an entertainment company with aspirations to become Hollywood's seventh major studio. DreamWorks Animation spun as a publicly traded company in 2004.

A DreamWorks Animation spokesman declined to comment.

Mr. Katzenberg's tenure at DreamWorks Animation has oscillated between two missions: producing hit animated movies and expanding beyond the multiplex to create divisions that compete with family entertainment rivals in television, consumer products and online video. Successful DreamWorks Animation franchises have included "Shrek" and "Kung Fu Panda."

Mr. Katzenberg has also been particularly fixated on business opportunities in China, where he launched a joint venture called Oriental DreamWorks that is expected to produce features for Chinese and global audiences in the coming years.

Mr. Katzenberg's involvement in Democratic Party politics -- including his crucial early endorsement of then-Sen. Barack Obama in 2008 -- has made him more of a household name than many Hollywood executives. He has been actively fundraising for Hillary Clinton in the current election cycle.

DreamWorks shares were up more than 18% near the end of trading Wednesday on the Nasdaq Stock Exchange, at $32.14, following The Journal's report Tuesday night on the deal talks.

Write to Erich Schwartzel at erich.schwartzel@wsj.com and Ben Fritz at ben.fritz@wsj.com

(END) Dow Jones Newswires

April 27, 2016 16:14 ET (20:14 GMT)

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