LOS ANGELES — DreamWorks Animation SKG Inc., the movie studio behind ‘‘Kung Fu Panda’’ and ‘‘Madagascar,’’ said Monday that its films will be distributed by 20th Century Fox next year.
The five-year deal replaces a distribution agreement DreamWorks has with Viacom Inc.’s Paramount Pictures.
The announcement on Monday came after DreamWorks had contemplated distributing its films on its own.
The arrangement brings DreamWorks’ animated titles together with those of Fox, a News Corp. division whose Blue Sky Studios produced the computer-animated hits ‘‘Ice Age’’ and ‘‘Rio.’’
DreamWorks chief executive Jeffrey Katzenberg said that its fee in theatrical and home video markets will be similar to its existing deal. But it will benefit from lower costs for films distributed digitally.
DreamWorks shares rose 79 cents, or 4.5 percent, to $18.51 in after-hours trading.
They had closed down 13 cents at $17.72 in the regular session.
Shares of News Corp. fell 18 cents to close at $23.27.