Dreamworks Animation/Hasbro Merger in Talks

[JavaJulien]

http://deadline.com/2014/11/dreamwor...ks-1201282751/

A Dreamworks GI Joe film would be pretty sweet if everything falls through.

[SquidPuppet]

Originally Posted by JavaJulien

http://deadline.com/2014/11/dreamwor...ks-1201282751/

A Dreamworks GI Joe film would be pretty sweet if everything falls through.

Stocks up 15% this morning.

[camper]

Animated GI Joe film?

Involve Larry Hama from the getgo or don't bother.

[Walts Ghost]

DreamWorks Animation Sale Talks with Hasbro End

Hasbro does not plan to acquire DreamWorks Animation, in a deal that would have been worth at least $2.3 billion, Variety can confirm.

The toymaker ended conversations with the toon studio on Friday, causing DWA’s stock to plummet more than $2 a share after the close of the trading day on Wall Street.

While sources close to the merger discussions between the two companies say talks were in their early stages, the very idea had Hollywood considering the prospects of an entertainment juggernaut that would have combined popular franchises, TV shows, digital platforms, and a growing consumer products, live events, location-based entertainment business.

There were several factors that led to the talks ending between Hasbro and DreamWorks.

Hasbro chief Brian Goldner is said to have grown skittish over the impact the potential merger had on Hasbro’s stock, which fell 4% on Thursday to $54.98 and another 1.75% on Friday to $54.02.

Investors regained confidence in Hasbro after talks of the merger were reported to have ended.

Analysts criticized the deal, especially the price DWA was asking for, which some say ranged between $30 and $35 a share. That was far too high for some observers.

DWA chief Jeffrey Katzenberg wanted at least $30 a share. Some put it as high as $35.

“DreamWorks Animation’s potential as an acquisition target has been a leading investment thesis for owners of the stock since DWA went public in 2004, following the box office success of ‘Shrek 2,’” said Richard Greenfield and Brandon Ross, analysts at BTIG Research on Friday, following news that the talks were underway on Thursday. “Unfortunately for DWA, the company’s inconsistent creative output, and thus financial performance, makes it hard to understand why anyone would want to acquire the company at its current market valuation, let alone the $3 billion plus that management supposedly covets.”

FBR Capital Markets also was doubtful, saying “Katzenberg, we believe, has a constructive view of DWA’s value, which can make it hard for the seller and buyer to agree on pricing.”

Neither side has officially commented on why the talks fell apart, nor the potential of a deal. The Hollywood Reporter first reported the news of both sides parting ways.

Hasbro follows recent conversations DWA has had to sell the toon studio. In September, it discussed such a sale with Japanese tech giant SoftBank, that also ended just days later.

Variety