82.1 F
San Fernando
Thursday, Aug 18, 2022
-Advertisement-
Array

Update: DreamWorks, Hasbro End Merger Talks

Merger talks between DreamWorks Animation SKG Inc. and Hasbro Inc. have ended, according to media reports late Friday. Entertainment industry trade publication Hollywood Reporter was the first to report talks broke down between the Glendale animation studio and Hasbro, the second largest toymaker in the U.S.. It speculated that the cause may have been DreamWorks demands to be acquired at a price of $35 a share – and the subsequent loss in value of Hasbro shares once the merger talks became public. Variety later reported it had confirmed the two companies had ended negotiations. DreamWorks and the Pawtucket, R.I. toymaker were not commenting to either publication. The merger discussions were first reported late Wednesday and the following day DreamWorks shares jumped 14 percent. Hasbro shares by comparison dropped 4 percent. This is the second time in seven weeks there were reports of an interested bidder in DreamWorks, which has seen its share price fall following a series of box office bombs that has cut into its share price. In late September, Japanese communications and Internet company SoftBank Corp. was said to be interested in acquiring the studio in a deal valued at $3.4 billion, or $32 a share. Those discussions did not result in a deal. Analysts, among them Vasily Karasyov, with Sterne Agee Group Inc., a Birmingham, Ala. brokerage, questioned the Hasbro deal and whether DreamWorks was asking too much. A $35 per share price would have required Hasbro to pay 41 percent of its current market capitalization for a company facing serious challenges, Karasyov wrote in a note published Thursday. “While we can’t argue that something will not happen in the future, we can argue that there is no industrial logic whatsoever to this hypothetical combination,” the note said. Shares in DreamWorks closed up 50 cents, or 2 percent, to $26.02 on the Nasdaq exchange on Friday prior to the reports that talks had ended.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-