This Variety article reports that the penguins from Madagascar and the cast of Kung Fu Panda will both be developed into series for Nickelodeon. Nickelodeon is owned by Viacom, which recently purchased DreamWorks' live action division.
In addition, Animated News is reporting that Shrek is due to become a Broadway musical in 2008.
As I've noted before, companies that are animation-only have a tough road to travel. Pixar decided to sell itself to Disney rather than continue to rely solely on their feature releases for revenue. DreamWorks is a public company that has to take stockholders into account. By adding new revenue streams, they're bolstering their profits and reducing the impact of a film that's a box office disappointment. I wouldn't be surprised if we see DreamWorks making more moves to diversify.