Geffen, 65, will retain a 5.7% stake in DreamWorks Animation that amounts to a 22% voting bloc on the board, spokeswoman Shannon Olivas said.
Geffen’s departure is not expected to disrupt operations at DreamWorks, which he helped establish with Katzenberg and Steven Spielberg in 1994.
In 2005, more than a decade after the trio established the company, they agreed to sell the studio to Viacom, the parent company of Paramount Pictures for $1.6 billion.
Earlier this year, DreamWorks announced that it would dissolve its relationship with Paramount in favor of a $1.5-billion to deal to produce films with India’s Reliance ADA Group, a media production company.
Geffen, along with Spielberg and DreamWorks President Stacey Snider, helped orchestrate the deal but will reportedly not take part in the newest venture.
Before the sale, DreamWorks spawned its animation arm in 2004 and last year announced it would spend $85 million to expand its Glendale campus, at 1000 Flower St., by 128,718 square feet and extend the multilevel parking garage to provide 265 more spaces.
Despite the departure, Katzenberg does not expect personal ties between Geffen and DreamWorks Animation to be disrupted.
“We look forward to working with David as a trusted advisor going forward,” Katzenberg said.
Katzenberg and DreamWorks Animation President and Chief Financial Officer Lew Coleman also reported Tuesday a 25% drop in revenue and 5.6% drop in income after a sluggish third quarter.
Between July 1 and Sept. 30, officials reported total revenue of $151.1 million and net income of $37.4 million, down from $9 million in revenue and $10 million in net income from the same period a year ago.
During the third quarter of 2007, DreamWorks Animation reported revenues of $160.8 million and net income of $47 million.
